33MARKET OF AGRICULTURAL AND FOOD PRODUCTS IN THE REPUBLIC OF SERBIA: POSSIBILITIES AND IMPLICATIONS
Dejan Dasic1, Tijana Stanic2, Dragan Zivkovic3 Corresponding author E-mail: drddasic@gmail.com
ARTICLEINFO ABSTRACT
The main topic is Serbian agro-food potential. Serbia possesses exceptional natural resources having in mind it is located in the most favourable region of the north latitude. If this potential is used in an optimal measure, it would bring exceptional results. According to agriculture census in 2018 in Serbia there was registered 628.552 family agricultural farms, and 562 896 are family households. By adequate strategic planning, agriculture can provide a significant contribution to the economic development of a country. Agriculture encourages employment, takes a significant part in foreign trade, provides food security for citizens, contributes to the rural development and ecological balance. Therefore, it affects the development of entire country by being related to different sectors.
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Introduction
Countries that have reached a high level of development also have a well-developed agricultural production, although this sector does not take a significant part in total emploment and creation of gross domestic product. In that aspect, developing countries spot an opportunity for agriculture development to bring them the reduction of import dependance, increase of exports and economic growth rate. In that aspect, significant funds are provided for the import of energy sources, capital equipment and other industrial products.
Agricultural and food products represent the basis of population's nutrition. FAO4 estimates that in 2050. in the world there will be between ten and twelve billion people,
1 Dejan Dasic, PhD associate professor, Faculty of Law, Security and Management "Constantine the Great", Nis, Union-Nikola Tesla University, Belgrade,, +381606626922, E-mail: drddasic@gmail.com, ORCID ID (https://orcid.org/0000-0002-8245-1117)
2 Tijana Stanic, Msc; Alfa University, Faculty of Finance, Banking and Auditing, Belgrade, Phone: +381659943120, E-mail: tijanakm94@gmail.com, ORCID ID (https://orcid. org/0000-0002-6973-4032)
3 Dragan Zivkovic, Ph.D., Full Professor, High school of Academic Studies "Dositej", Vojvode Putnika 7, 11000 Belgrade, Serbia, Phone: +381 113235500, E-mail: zivkovic. dragan58@gmail.com
4 FAO (Food and Agriculture Organization).
Original Article Received: 01 November 2021 Accepted: 02 February 2022 doi:10.5937/ekoPolj2201057D UDC 338.439.5(497.11) Keywords:
agricultural and food products, products, marketing channels, the Republic of Serbia
JEL: P25, Z32
which will result in a need for a greater amount of food. Main task of agricultural production is to provide sufficient amounts of food for the population (Vlahovic, 2015; Stankovic et al., 2020; Bordevic & Mitic, 2020).
The goal is to point out that greater investments in this area it would be achieved significant economic effects, revival of rural areas and ecological balance. Secondary data sources were used for this article, statistical data processing and analysis, as well as modern literature about agricultural potential and rural development. Taking into account the extraordinary natural resources of Serbia, agriculture represents a development opportunity which can be presented trough the following link: agriculture-economic progress-rural areas-ecologic equilibrium. From the presented relations arises the basic hypothesis which reads, HO: Greater investments in agricultural holdings in Serbia can lead to positive economic effect, encourage empoyment in rural areas and ecological balance.
According to agriculture census in 2018 in Serbia there was registered 628.552 family agricultural farms, and 562 896 are family households. However, the data of the Republic Bureau of Statistics show that age structure of household holders is such that even 42,5% are older than 65, then there is a category of those aged between 55 and 64 (27,9%), while 17,8% of agricultural household holders are between 45 and 54. It can be concluded that population who are engaged in agriculture belong to the category of old people. The exception from the above-mentioned in the region of Sumadija and Western Serbia, which has the greatest number of young holders of households (up to 40 years).
In the structure of households specialized for perennial plantings, the ones specialized for fruit production are the ones that dominate (89,3%), while 3,2% of households are specialized in viticulture sector (Figure 1).
Figure 1. Structure of agricultural households specialized for perennial plantings
Source: Presentation of the author based on RBS, Statistical base, Agriculture, Forestry and Fishing, survey, 2018. (expressed in %)
Structure of agricultural households in our country in 2018
D Viticulture
COrchardinç
□ Other perennial plantings (comb ined)
Based on the data presented in Figure 1, we can see that in the structure of households specialized for perennial plantings there dominate households specialized for fruit production (89,3%), while only 3,2% of households are specialized in the sector of viticulture.
Figure 2. Structure of agricultural households specialized within cattle breeding - pigs and
poultry breeding
Source: Presentation of the author based on data from RBS, Statistical base, Agriculture, Forestry and Fishing, survey, 2018 (expressed in %)
Figure 2 shows the structure of households specialized in pigs and poultry breeding. Data show that agricultural households are dominantly oriented on breeding and fattening of pigs (60,4%), while 16,9% of them are engaged in poultry breeding.
Figure 3. Structure of agricultural households specialized in cattle breeding sector - breeding
of cattle, sheep and goats
u Dairy
□ Breeding and fattening of cattie
□ Dairy and cattie fattening (comb.)
^Breeding sheep, goat and cth. gras ng catt
Source: Presentation of the author based on data from RBS, Statistical base, Agriculture, Forestry and Fishing, survey, 2018 (expressed in %)
Of the total number of agricultural households specialized for breeding cattle, sheep and goats, 59% deal with milk production and only 3,4% with breeding and fattening the cattle (Figure 3).
Cultivate crops in arable lands and gardens in 2018.
In our country, corn and wheat are traditionally most widely spread crops. Among them, in our country, there are also rye, barley and oats. Each of the corns mentioned is useful in nutrition, both of people and animals.
Table 1. Total production of grain in the Republic of Serbia, during 2018 - presentation
according to regions
Republic of Serbia Region of Belgrade Region of Vojvodina Region of Sumadija and Western Serbia Region of Southern and Eastern Serbia
(ha) (t) (ha) (t) (ha) (t) (ha) (t) (ha) (t)
Wheat and 369566 2941601 29042 121304 315925 1917446 148284 1796142 146315 1024155
corn
rye 4408 13418 529 788 1146 5631 2003 4843 730 7787
barley 102125 410138 8485 29309 45032 201246 29125 171937 19483 208892
oats 27174 74707 2690 6346 1983 15588 16525 9242 5978 59119
Corn for 900047 6964770 36868 213319 201296 4870664 203990 4657345 157893 2094106
grain
Other
crops for 29507 10986 1876 1652 13894 3571 9858 1981 3879 7415
grain
Source: Presentation of the author based on data of RBS, Survey on agricultural households structure, 2018- What is confirmed, what is denied and what is pointed at, Republic Bureau of
Statistics, Belgrade 2019.
Note: Region of Kosovo and Metohija is left out from the presentation of total production
Based on data presented in Table 1, we can conclude that at the level of entire country the greatest yield was achieved by corn (6.964.770 t). Second place according to the amount of yield in tons is occupied by wheat with the achieved yield of 2.941.601 t, while third place is occupied by barley yield in the amount of 410.138t.
The greatest yield of corn in 2018 expressed in tons is achieved in the region of Vojvodina and it is 4.870.664 tons. In the region of Belgrade, corn is most widely spread and the achieved production in 2018 is 213319 t. In the region of Vojvodina, corn is also most frequently cultivated, with an important difference that the yield is by far higher in this region, i.e. it is the highest in entire country.
Region of Sumadija and Western Serbia (4.657.345 t) and region of Southern and Eastern Serbia also record the highest production of corn for grain (2094106 t). Based on the above mentioned, we can conclude that in 2018, as well as in previous years, the highest frequency of total corn production for grain was recorded in region of Vojvodina.
Table 2. Total production of vegetables in the Republic of Serbia, during 2018 - overview
according to the regions
Republic of Serbia Region of Belgrade Region of Vojvodina Region of Sumadija and Western Serbia Region of Southern and Eastern Serbia
(ha) (t) (ha) (t) (ha) (t) (ha) (t) (ha) (t)
Potato 27701 487909 361 17186 3881 95704 17394=63% 239391=50% 6062 135628
Tomato 8629 131868 977 18526 2241 19728=38% 2966 37342 2445 26273
Cabbage 8251 209353 601 12148 1313 40560 3449 94189=45% 2888 62456
Paprika 12016 135072 593 4449 1421 21137 5225 57647=43% 4777 51839
Onion 3618 27967 188 773 1335 16108=58% 996 5620 1099 5466
Garlic 1441 3615 82 154 461 1524 714 1616=45% 184 321
Carrot 1385 22203 71 1001 708 15468 522 4974 84 760
Peas 6736 29261 783 3166 3609 17991 1361 5023 983 3081
Cucumber 3220 42539 142 1588 569 7624 1320 18782 1189 14545
cauliflower 347 4817 33 444 134 2172 99 1289 81 913
Source: Presentation of the author based on data from RBS, Survey on agricultural households structure, 2018 - What is confirmed, what is denied and what is pointed at, Republic Bureau of
Statistics, Belgrade 2019.
Note: Region of Kosovo and Metohija is left out from the presentation of total production
The data presented in Table 2 show that according to the size of planted surface, potato occupies the first place, it is planted on 27.701 ha, then paprika which is planted on 12.016 ha, as well as tomato whose crops occupy the surface of 8.629 ha, as well as cabbage that is planted on 8.251 ha.
In total production of vegetables in entire country during 2018, the greatest yield was achieved by potato (487.909t). Even a half of the mentioned potato yield (239.391t) is recorded in the region of Sumadija and Western Serbia. A crop that occupies second place is cabbage, with a yield of209.353t at the state level, and the greatest part of yield comes from the region of Sumadija and Western Serbia, where 45% of the total yield of cabbage was achieved. Although it is planted on smaller surface, cabbage has achieved greater yield in relation to tomato.
The next crop is paprika whose production reached 135.072 tons, and the highest yield (62.456 t) is achieved in the region of Southern and Eastern Serbia. Fouth place according to the recorded rate of yield is tomato with the achieved 131.868 tons in entire country, i.e. for the greatest part from the region of Sumadija and Western Serbia. Almost 60% of the total achieved production of onion comes from the region of Vojvodina, while garlic is the most cultivated crop in the region of Sumadija and Western Serbia whose share is 45% in total production of this culture.
When we observe the surface planted with carrot, peas, cucumber and cauliflower, based on data given in Table 2, we can conclude that among these four crops the greater surface is planted with peas, two times less with cucumber and five times less with
carrot. However, in spite of differences in surfaces, much greater yield has cucumber, 42.000 t, and peas about 29.000 t.
Fruit production makes approximately one tenth of agricultural production, and thus in that small scope it represents one important branch of agricultural production. Most widely spread and, in some aspect, most significant for agricultural production are, traditionally, plums, apples, sour cherries and raspberries, as it is presented in Figure 4.
Figure 4. Structure of surfaces under fruit types, 2018. (expressed in %)
nP!ums P Apples ^Raspberries
° Sour cherries •Blackberries
□ Apricots
□ Other fruit types
Source: Presentation of the author based on data from RBS, Survey on agricultural households structure, 2018 - What is confirmed, what is denied and what is pointed at, Republic Bureau of
Statistics, Belgrade 2019.
Data from the Figure 4 show the dominance of plums production, which occupy 40% of the total surface under fruit types.
In order to have a more adequate presentation of the achieved fruit production in our country during 2018, we have analyzed the surfaces with: stone fruit (apples, pears, peaches, nectarines, apricots, cherries, sour cherries, plums and quinces), berry fruit (raspberries, blackberries, blueberries, etc), as well as surfaces and yields planted with kernel fruit (nuts and hazelnuts).
When it comes to stone fruit, greatest surface is occupied by apples (26.658 ha), and thus they have the greatest production recorded. According to the total surface (orchards and plantation orchards), apples occupy 26.658 ha, i.e. 0,8% of the total available land. In 2018, there was produced 460.404 t of apples, i.e. about 66 kg per capita. Pears occupy 4.977 ha, i.e. 0,14% of the total available land.
T4K
13%
Table 3. Total production of fruit in the Republic of Serbia, during 2018 - overview per regions
Fruit types Republic of Serbia Region of Belgrade Region of Vojvodina Region of Sumadija and Western Serbia Region of Southern and Eastern Serbia
(ha) (t) (ha) (t) (ha) (t) (ha) (t) (ha) (t)
Stone fruit
Apples 26658 490404 1561 26390 7131 178266 11402 144784 6564 110964
Pears 4977 53905 369 3965 1114 9535 2262 24598 1232 15808
Quinces 1947 12318 65 5255 228 1336 605 3919 1049 7063
Plums 72923 430199 2289 25829 2559 32816 48682 267665 19393 103890
Sour Cherries 19579 128023 718 24338 1705 8811 3895 15527 13261 103685
Peaches 5176 50249 1949 28734 1003 16935 615 11800 1609 21515
Apricots 6040 25414 2784 11193 1030 6121 1566 5030 660 3070
Cherries 4335 19153 2095 8846 465 7429 1078 1417 698 10307
Berry fruit
Raspberries 24901 127010 146 13731 733 5051 21413 113279 2609 8680
Blackberries 6055 35062 33 1461 23 676 5245 33601 754 785
Other berry fruit 495 5109 22 527 69 271 252 4583 152 256
Kernel fruit
Nut 2796 9266 95 484 418 2478 1069 2499 1214 4985
Hazelnut 4564 5678 196 254 2335 3274 1006 1068 1028 1194
Source: Presentation of the author based on data from RBS, Survey on agricultural households structure, 2018 - What is confirmed, what is denied and what is pointed at, Republic Bureau of
Statistics, Belgrade 2019.
Note: Region of Kosovo and Metohija is left out from the presentation of total production
Berry fruit in the territory of our country is planted on 31.451 ha and total yield of 167.181 tons was achieved. Most widely spread crop among berry fruit is raspberry, whose yield in total territory is 127.010 tons and the highest yield comes from the region of Sumadija and Western Serbia where 113.279 tons of this culture was recorded. As for the kernel fruit, in our country we have nuts and hazelnuts. Total yield of nuts is 9.266 tons, and the greatest part comes from the region of Southern and Eastern Serbia (4.985 t). The data of the Survey on agricultural households structure, 2018, show that the types mentioned are dominant in the year 2018 as well, and they are followed by apricots, peaches, pears, cherries and blackberries. Blueberry, chokeberry, currant and kiwi are also cultivated in our country.
Table 4. Agricultural products in Serbia - 2017 n 2018. (in thousands tons)
2017 2018 Index 2017=100
Wheat 2275 2943 129,2
Corn 4018 6964 173,3
Sunflower 540 733 135,7
Soy 461 645 140,0
Sugar beet 2513 2325 117,3
2017 2018 Index 2017=100
Cheery 91 128 92,5
Apricot 41 25 61,5
Raspberry 109 127 115,7
Apple 378 460 92,3
Pear 52 53 121,6
Plum 330 430 130,1
Grapes 165 149 90,5
Source: RBS, Statistical base, Agriculture, Forestry and Fishing, Agriculture census. Note: Data presented are rounded to an integer.
When with the help of comparative approach we observe the total yield of particular agricultural and food products in 2017 and 2018 (Table 4) we can conclude that in 2018 there is a growth by 73,30% in relation to 2017 when it comes to corn cultivation. The next product is soy bean, which has achieved greater yield in 2018 by 40% in relation to the previous year, as well as sunflower which has recorded a growth of 35,7%. Therefore, we can conclude that the top of the list is occupied by livestock products, as well as that they show growth tendency, which is an encouraging facts. However, it is inevitable to mention that in 2018, compared to 2017, the production of sour cherries, apples and apricots was reduced.
In total production of fruit in 2018, pear occupies 3,2% and therefore it is on the sixth position. Total production of pears in 2018 is 53.905 t, so that would mean that at state level there was produced about 8 kg of pears per capita. According to the total surface (orchards and plantation orchards), quinces occupy 1.947 ha, i.e. about 0,1% of the total land available. Total production of quinces in 2018 was 12.318, i.e. 1,8 kg per capita. Quince occupies 0,7% and it is on the twelfth position.
Plums occupy 72.923 ha, i.e. about 2,1% of the total land available. Total production of plums in 2018 was 430.199 t, i.e. about 61 kg per capita. In total production of fruit in 2018, plum occupies 25,7% and therefore it is on the second place. In 2018, the greatest amount of plum is produced in region of Sumadija and Western Serbia (267665t). Sour cherries are in 2018 produced in the greatest amount in the region of Southern and Eastern Serbia (10.307t), while peaches (28.734 t) and apricots (11.193 t) have achieved the greatest yield in the region of Belgrade.
Figure 5. Structure of agricultural production in the Republic of Serbia, 2018
20 1 7 20 1 S
Source: Presentation of the author based on data of RBS, Statistical base, Agriculture, Forestry and Fishing, Survey, 2018. (expressed in thousand tons)
Data from the Figure 5 show that in 2018 there was an increase of production of wheat and corn in relation to 2017. The greatest difference, i.e. the greatest yield in 2018 in relation to 2017 is achieved in the yield of corn.
In the production of other observed agricultural products (sunflower, sugar beet, sour cherry, apricot, raspberry and apple) there were no significant changes, thus on this occasion we will not consider and analyze them in details.
Figure 6. Structure of agricultural production in the Republic of Serbia, 2018
Source: Presentation of the author based on data from RBS, Statistical base, Agriculture, Forestry and Fishing, Survey, 2018 (expressed in %)
Farmers in our country most frequently deal with plant production (65,2%) in relation to cattle breeding (34,8%). Within plant production, a special place in share in total value belongs to field and vegetables cultivation, which takes place in the surface of more than 3,3 million of hectares in the Republic of Serbia. In 2018, in a realized physical scope of agricultural production in Serbia, field production along with vegetables production had a share of 79.3%, and in total realized value of agricultural production with 51,67% (RBS, 2019). The significance of field products is reflected primarily in nutrition of people and cattle, which further points to the need of continuous improvement and
development of an organized market for these products. Industrial plants is cultivated on a surface of 400-440 thousand hectares, with an expressed variations of surfaces, for all the crops from this group. The production of industrial plants makes about 8% of the total value of agricultural production of the Republic of Serbia (Strategy of agriculture and rural development of the Republic of Serbia for the period 2014-2024.).
Share of agricultural and food products in total export of the Republic of Serbia
Some studies (Gollin, Parente & Rogerson, 2002) and main economic indicators point to a big significance of agricultural production and export of agricultural products for the economic growth of developing countries, which include our country as well. Central European Free Trade Agreement (CEFTA) and Customs Union (Russia, Kazakhstan and Belarus) are the most important trade partners for Serbia.
Sector of agriculture and food products is a very important sector of Serbian economy according to the resources available. Agriculture represents a development chance having in mind the growing tendency of food prices at global market (Puskaric, et al., 2009). Having in mind that agriculture is a significant activity in the Republic of Serbia, the state lead the policy of its encouragement through agrarian budget, in order to develop and bring even greater effects (Kuzman, et al., 2017).
In the period January-October 2017, the total export of agricultural food in Serbia has reached the value of 2,40 billion $, which is a drop by 14% in relation to the same period in 2016. Total import of agricultural food in Serbia for the period January - October 2017 was estimated to 1,25 billion dollars, which is a drop by 17% in comparison to the same period 2016.
Export of agricultural food from Serbia consists mainly of grain, sugar, fruit and vegetables (fresh and frozen), confectionery products and drink. During the period January - March 2019, there was achieved the value of export 834,4 million $, which is a growth of 12% in relation to the same period previous year (it was 745,3 million $), with a share in total merchandize export of 18%. In addition, value of import (514,6 million $) is by 1,9% less than the achieved in the period January-March 2018 (when it was 524,4 million $), with a share in total merchandize import of 8,2%. Foreign trade exchange of agricultural and food products in the period January-March 2019., records a surplus of 44,8%, i.e. by 98,9 million $ higher in relation to the observed period January-March 2018 and it amounts 319,8 million $, with a rate of import coverage by export of 162,1%.
The most significant agricultural and food products in export in the period January-March 2019 are: mercantile corn (120 mil. $), frozen raspberry (55 mil. $), cigarettes (42 mil. $), fresh apples (34, mil. $), hybrid seed corn (33 mil. $), as well other food products: mercantile wheat (22 mil. $) and crude sunflower oil (19 mil. $).
Table 5. Export and import of agricultural food products in the Republic of Serbia for the period 2018 and January-July 2019.
Export Import Share in total export in % Share in total import in %
2018 2019 2018 2019 2018 2019 2018 2019
Total - - - - 100,0 100,0 100,0 100,0
0 Food and livestock 138,8 159,4 81,0 92,4 12,4 13,3 5,5 5,7
00 Livestock, except animals from the section 03 3,1 2,5 2,4 1,7 0,3 0,2 0,2 0,1
01 Meat and processed meat products 7,1 6,8 9,1 9,5 0,6 0,6 0,6 0,6
02 Dairy products and eggs 8,2 10,5 5,1 8,6 0,7 0,9 0,3 0,5
03 Fish, crustaceans, mollusks and processed products from them 0,9 1,1 5,0 5,9 0,1 0,1 0,3 0,4
04 Grains and products based on grains 37,5 54,3 5,4 7,6 3,4 4,5 0,4 0,5
05 Vegetables and fruit 50,7 49,2 22,3 27,5 4,5 4,1 1,5 1,7
06 Sugar, sugar products and honey 3,7 5,1 2,6 2,6 0,3 0,4 0,2 0,2
07 Coffee, tea, coffee, spices and products made of them 5,7 6,1 11,7 13,3 0,5 0,5 0,8 0,8
08 Fodder (except corn in grains) 11,1 12,9 6,9 4,9 1,0 1,1 0,5 0,3
09 Various food products and processed products 10,7 10,9 10,4 10,7 1,0 0,9 0,7 0,7
1 Drinks and tobacco 31,6 33,7 20,4 24,3 2,8 2,8 1,4 1,5
11 Drinks 14,3 15,6 6,2 6,7 1,3 1,3 0,4 0,4
12 Tobacco and tobacco products 17,3 18,0 14,2 17,6 1,5 1,5 1,0 1,1
4 Animal and vegetable oils, fats and waxes 8,8 12,3 3,9 2,8 0,8 1,0 0,3 0,2
41 Animal oils and fats 0,2 0,2 0,7 0,6 0,0 0,0 0,0 0,0
42 Solid vegetable fats and oils, crude, refined 8,3 11,8 3,0 2,0 0,7 1,0 0,2 0,1
43 Animal and vegetables fats and oils, processed 0,3 0,3 0,2 0,2 0,0 0,0 0,0 0,0
Source: Republic Bureau of Statistics, Foreign Trade Statistics, Report, no. 236, LXIX,
30.08.2019.
Data presented in Table 5. show that the greatest share (4,5%) in total export was for fruit and vegetables, as well as grain, 4,5%. In the period observed, the greatest share in total import was achieved in case of products such as coffee, tea, cocoa, spices and their products in the amount of 0,8%. It is concluded that the yields are relatively lower in relation to more developed countries and record significant oscillations. The analysis of yield dynamics change expressed by ten-year average values in the last three decades, points that only industrial plants and some types of fruit (plums and raspberries) have
a permanent growth of yield. Seed material that is produced in the Republic of Serbia does not cover the needs of domestic market, thus significant amounts of vegetable seeds are imported.
Production of fruit took part in the last decade on a surface of almost 270 thousand hectares and it is about 9% of the value of agriculture production of the Republic of Serbia. Production mainly takes place in private agricultural households. In this sector, a significant progress in achieved in improvement of standards in primary production and processing, as well as the domain of business connection.
Variations in production scope are great, because the sector is still at relatively low technological level and its production is susceptible to the impact of weather conditions. Viticulture is present in the whole country with an average production of 350.000 tons of table and wine grapes. A greater part of grapes production is used for wine production. During the last five years, there has been a mild increase in the scope of planted surfaces and also a physical scope of production (Strategy of Agricultural and Rural Development of the Republic of Serbia for the period 2014-2024.).
Share of agricultural and food products in total import of the Republic of Serbia
When we observe the import side of agricultural and food products, we conclude that milled tobacco dominates (21 mil. $), fresh bananas (18 mil. $), raw coffee (14 mil. $) cigarettes containing tobacco (14 mil. $) and frozen pork (14 mil. $).
According to the report of the Republic Bureau of Statistics (Table 5), our country has achieved the highest export of grain and products based on grain (54,3%), in current year (sex-month period January-July 2019), while in 2018 it was the export of fruit and vegetables (50,7%).
The circulation of agricultural and food products on domestic market
Total value of the circulation of agricultural products on the markets in the Republic of Serbia for the first six months in 2019, in relation to the same period last year, expressed in current prices, is higher by 16,4% (RBS, 2019).
In the structure of values of agricultural products' circulation on the markets for the first six months in 2019, most widely present are the following groups of products: vegetables (34,6%), fruit and grapes (19,2%), milk and dairy products (14,6%) and poultry and eggs (13,2%), (RBS, 2019).
Some authors (Puskaric, et al., 2016) stress the significance of promotional activities for the development of the market of indigenous food products. The authors mentioned state that development of rural areas is encouraged by production and sale of indigenous food products, with the preservation of national identity and they enrich the procurement of the region. Indigenous food products, in addition to sociological, also have economic significance, which is reflected in competitiveness, profitability of producers, who experience the performances from the aspect of consumers' satisfaction.
Specific institutions (traditional, domestic, natural, etc.) can create additional value when placing on domestic market. Based on the added value, these products achieve higher prices in the market, while consumers are satisfied with their consumption. Greater production and supply increase competitiveness, which has a positive impact on quality increase.
Foreign trade exchange of agricultural and food products of the Republic of Serbia
Foreign trade exchange of agricultural and food products of the Republic of Serbia mainly takes place with European Union and CEFTA countries, as well as Russian Federation by a smaller part. According to the data from the study of Markovic (2016), Serbia has placed about a half of the total food export to the countries of European Union (49,05%). Then, to the countries of CEFTA 33,38%, and 10,17% to Russia. To other countries it exports the remaining 7,4%. From the above-mentioned, there results a rather low geographic diversification of export and enormous dependence from economic and political circumstances in European Union, as the most significant foreign trade partner of the Republic of Serbia.
In tabular overview, the year 2001 was taken as base year (Table 6) in order to have a detailed overview and an insight to export-import of agricultural and food products of our country. We can see that in the initial year observed the balance is negative, and after that there is a growth recorded year after year, which points to the fact that in our country there is greater export than import, over a long period of time. In the last part of the table, there is an overview of the first quarter in 2018 and 2019, in order to make conditions for comparison. The results achieved in foreign trade exchange of agricultural and food products in the period January-March 2019., based on the data presented in Table 6, can be rated as positive. This is because the export shows a tendency of growth and import drops in relation to the same period previous year. In addition, we can notice the increase of export, both to EU and CEFTA and Russian Federation. Namely, import is reduced by EU and Russian Federation, while it remained the same in case of CEFTA countries.
Table 6. Regional structure of foreign trade exchange of agriculture and food industry of the Republic of Serbia 2001-(first quarter) 2019. (value in million $)
Total EU CEFTA Russian Federation
Export Import Balance Export Import Balance Export Import Balance Export Import Balance
2001 317 453 -136 170 168 2 114 124 -10 - - -
2002 534 549 -15 216 215 1 208 84 124 - - -
2003 651 582 -69 285 228 57 228 93 135 - - -
2004 866 823 42 441 390 51 360 116 244 2 1 1
2005 943 790 153 495 257 238 420 125 295 2 1 1
Total EU CEFTA Russian Federation
t - o t © « = t - o t © « = t - o t © « = £ o "E o o <J =
w Jä al 03 E S HH al 03 E S HH al 03 E S HH al 03
2006 1.265 905 360 580 363 217 613 220 393 7 3 4
2007 1686 1116 570 727 647 80 760 563 563 55 35 20
2008 1957 1468 489 796 641 155 1022 308 714 79 26 33
2009 1945 1308 637 629 551 375 895 288 607 65 33 32
2010 2241 1036 1205 1099 431 668 964 254 710 129 21 105
2011 2700 1400 1300 1296 658 638 1161 280 881 165 47 118
2012 2718 1473 1245 1396 744 652 1047 317 730 164 44 120
2013 2800 1564 1236 1351 831 520 1084 306 778 189 57 132
2014 3068 1639 1429 1505 1027 478 1024 201 823 312 60 252
2015 2865 1489 1376 1367 948 419 920 173 747 270 46 224
2016 3211 1551 1660 1541 941 600 1252 140 1112 321 48 273
2017 3179 1830 1349 1622 864 758 890 146 744 318 37 281
2018 3364 3026 1138 1716 1297 419 941 162 779 370 41 329
2018 (I-III) 745 524 221 381 335 46 209 42 167 82 10 72
2019 (I-III) 834 515 319 425 330 95 234 42 192 92 6 51
Source: Republic Bureau of Statistics, Foreign Trade Statistics, Report, no. 116, year LXIX,
30.04.2019.
In the study performed by Kocan and associates (2017), the factors that have a great impact on (un) successful business of agricultural households in Serbia were analyzed. The authors stress that application of prevention measures is of a particular importance in order to protect the crops from negative effects of climate changes. In addition to the above-mentioned, it is required to provide small and medium agricultural households a greater availability of knowledge, technique and technology and funding. They also need a greater impact in making decisions related to agricultural development and development of rural infrastructure.
As for the purchase of agricultural and food products in our country, in the study (Kovljenic, et al., 2016) there were analyzed the predictors that affect the purchase of these products. The sample of 201 respondents from the territory of the Republic of Serbia and the results of the study show that gender, financial situation and price represent a significant predictor of the purchase of agricultural and food products in the Republic of Serbia.
In a survey carried out by researchers Slow Food from Velika Plana during December 2018, there were 67 agricultural producers interviewed who are engaged in production and processing of agricultural and food products in the region of Branicevo-Podunavlje. The producers interviewed mainly get inputs/raw material from the producers from the places they live in (71,62%), exclusively from own production capacities or from
the nature. There is 13,51% of them who obtain raw materials for production from the producers from the region (or up to 200km distance). In addition, Serbia was mentioned as supply market by 13,51% of the respondents. Raw materials for product are imported by 1,35% interviewed producers only. When it comes to the technology of production that the respondents in the study mentioned apply, it was found that producers who use traditional technology and machines are the ones who dominate (68,7%). Partially modern process with modern machines is present in case of 16,4% interviewed producers, technology and machines that are old 10 years or more are present in case of 7,5% producers, and the same number of producers possess entirely modern process with modern machines (Radic-Jean &Mihajlovic, 2019). In a context of contemporary social changes some authors (Ciric et al., 2018) state that there is a connection between innovativeness of a farmer and his acceptance of the Internet and social media. The authors mentioned state that if the farmers are more open for new ideas and they try out new products, services and technologies, then they have a less resistance to changes of habits and thus their usage of Internet and social media is higher. The results of the study mentioned (Ciric et al., 2018) show that farmers are mainly interested in Facebook and YouTybe, and their intensified usage is expected. Instagram and Twitter are the networks that still aren't widely accepted among farmers and they are used by those farmers with the highest innovativeness level and desire to try out new things.
Conclusion
By adequate strategic planning, agriculture in Serbia can give a significant contribution to the economic development of the country. Agriculture encourages employment, takes a significant part in foreign trade, provides a food security of citizens, contributes to rural development (Maksimovic et al., 2019; Dasic et. al, 2020; Lekovic et al., 2020) and ecological balance. Having in mind that Serbia is rich in agricultural land it has a required precondition for an enormous potential of growth of export of agricultural food products, although the situation for many years was such that our country was mainly the country of the import. With an insight to the available relevant statistical data and by the analysis of empirical studies in our country, we believe that the main direction of future development of agriculture and food industry of Serbia must be directed towards optimal usage and preservation of available production capacities, increase of the scope of agricultural production, as well as change of production structure in favour of intensive productions meant for the export, production of high-final and high-quality products. All of this due to settle domestic supply and significantly increase the export of high quality agricultural and food products.
Subsidizing the inputs in agricultural production is a condition for cheapening of production, and thus a more competitive export. Therefore, it is required to strengthen the farmers and give them greater stimulants in the aspect of different tax reliefs and cheap long-term loans and subsidies, in order to keep people in the villages and thus prevent the village from dying. The increase of export in our country in addition to
everything above-mentioned is reflected in the possibility to form a recognizable "product brand" "Made in", i.e. "Product of' which will guarantee a high quality of products and by which the products of our country will be recognized in foreign markets. In that context, some agricultural and food products of the Republic of Serbia who have this potential, among other things are: plum brandy, wine, plums, raspberries, sour cherries, mushrooms, greaves, kaymak, Zlatibor prossciutto, etc. however, in order to achieve that and for our products to be well-known and available to all countries in region, and widely, we must continuously work on quality because that is precisely the path to brand creation.
The next step refers to the increase of the level of agricultural production by applying modern technologies and tracking trends in the world. Here we primarily refer to the application of innovative procedures in agriculture and application of modern marketing concepts, such as application of Internet and social networks, and all of that in order to promote agricultural products and understanding their importance for nutrition of both people and animals.
The sector of agriculture and food products has an exceptionally important role in the development of a country and the creation of competitive agricultural market can greatly contribute to strengthening of export potential of domestic economy. The export can be increased only by greater production, and it will also reduce the import. Since the Republic of Serbia faces a long-term deficit of trade balance, the improvement of foreign trade with agricultural and food products becomes necessary. In this manner, it is required to radically change the structure of export in order to increase the competitiveness of these products and eliminate the constraints that are the result of low work productivity, inadequate agricultural policy in the last decade and lack of funds to invest in the sector of agriculture. The mentioned measures would affect the growth of gross domestic product (GDP), aggregate demand, as well as total export of agricultural products. The hypothesis that with bigger investments in agricultural holdings Srbia will acheive significant economic growth, increase employment in rural areas and provide ecological equilibrium is proven with all cited above.
Conflict of interests
The authors declare no conflict of interest.
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