Overview agriculture in Croatia and Serbia. 1 Netherlands Embassy, Office for Agriculture, Western Balkans

Transcription

1 Overview agriculture in Croatia and Serbia 1

2 Landbouw Economische cijfers Croatia Serbia Area 56,596 km² 77,592 km² Population total Living in predominantly rural regions 4.26 mil 56.3% 7,1 mil 40,6% GDP bill EUR 33,1 bill EUR GDP per capita, EUR EUR % of Gross value added (GVA) % 9,7% GDP STRUCTURE (2014) Industry Agriculture Services 26.6% 4.5 % 68.9% Exports (goods and services) bill EUR 12.1 bill EUR Imports (goods and services) bill EUR 10.0 bill EUR Exports of agricultural products bill EUR (13% of total commodity) 2,3 bill EUR (20%) Imports of agricultural products bill EUR (14% of total commodity) 1,2 bill EUR (8%) 37% 8% 55% Trade balance - 1,0 billion EUR 1,1 billion EUR 2

3 Landbouw Economische cijfers Use of agricultural land Arable land Grass land & pastures Other Croatia 1,3 mill hec 70% 26% 4% Serbia 3,5 mill hec 73% 21% 6% Employment in agriculture 4,4% 21% Number of holdings 120, ,000 Average size of holding 7,5 hec 5,5 hec Agricultural goods output, of which Crop output Animal output 2.03 bill EUR 61% 39% 2,7 bill EUR 67% 33% Trade partners EU, CEFTA, Other EU, CEFTA, Other Trade in goods with Netherlands (2014, LEI) Import from Netherlands 175 mill (33%) 65 mill (16%) Export to Netherlands 3,3 mill (5%) 60 mill (50%) 3

4 Agricultural Subsidies Croatia Serbia Direct Payments 373 mill / year 280 mill / year Rural Development 352 mill / year IPA-RD (from 2017): +/- 40 mill year. Land purchase 7+3 years after accession, unless you are registered in Croatia. Not until 2017, unless you open a local company in Serbia. Legal Framework Common Agriculture Policy ( ) Stabilisatie & Association Agreement (2007) 4

5 SWOT analysis Strengths Favorable climate conditions, natural resources Skillful labor force at lower labor costs Some strong retail chains Tradition in agro production. Link to developed tourist market (CRO) Trade agreements Russia and others (SRB) Opportunity Availability of ample EU funds (agriculture, infrastructure) Excellent geographic position High quality of certain products niche markets, growth in export Farmers invest more - modernization of farms and technologies (CRO) Awareness to improve producers cooperation EU accession (SRB) Need for technical assistance (SRB) Weaknesses Purchasing power and investments Kadaster Relatively weak agri production / competitiveness Insufficient organization of producers / sector Underdeveloped value chain and agro logistics Insufficient production standards (SRB) Weak regulation (SRB) Threat Slow process in national structural reforms Administration bottlenecks Unpredicability of policy Investment climate is difficult Increased competition since the EU accession (CRO) Not fully utilized EU funding possibilities ( missed opportunity ) (CRO) Rule of Law (SRB) 5

6 Livestock 6

7 LIVESTOCK GENERAL During last 20 years, significant changes in primary animal production, processing and animal product markets: Specialization and intensification of production, improving of active technologies, enlargement of production units through new quality standards and traceability. Liberalization of the food product market increased demand for (competitiveness and distinctiveness of) national animal production Consumers attitudes have changed significantly - hygienic safety, traceability and origin of the product have become increasingly important criteria Yet, animal husbandry still marked by a relatively small production capacity of family farms, which are prevalent Home production both in terms of animal and meat production do not meet market demand, except in poultry sector Needs in further modernization of farms, production technologies, energy efficiency and environmental protection 7

8 PIG SECTOR 8

9 Pig sector - Croatia Traditionally very important sector: 35,9% of total livestock production and 14,2% of total agro production Consumption pork meat 24 kg per capita (in increase) Yet home production in decline - 50% of total domestic meat production (satisfying only 30-40% of domestic needs) Lack in domestic production compensated with high import In 2014 imports of slaughtering pigs, meat and meat products reached $236 million (79,447 MT), mainly from Nederland, Germany, Spain, Hungary, Italy, Austria, Brazil Export to CEFTA countries - Russian export ban caused domestic retailers to import large quantities of cheaper EU pork exit for local producers in export to Serbia and BaH 9

10 Pig sector - Croatia significant reduction in pigs population; import increase 30-40%! Currently 34.88% pigs for breeding, 45.54% of gilts and 22.33% of slaughtering pigs 1,16 mill pigs for slaughtering (domestic need at least 2,5 mill) Out of 100,000 sows are registered breeding sows under control registered breeding sows with production control distributed between large systems (90%) and family farms Big production systems using hybrid programs in growth, production of the family farms is in stagnation Three large vertically-integrated producers account for 60% of pork production in Croatia, with the 40% balance produced by small-scale producers that typically lack the economies of scale enjoyed by their European peers E.g. typical pig farm in Croatia boasts just 10 breeding sows, while the typical pig farm elsewhere in the EU has over 100 Need to preserve added value of small and mid holding farms in change breed composition and manufacture of higher added value products, such Slavonian sausage and 4 types of Dalmatian and Istrian prosciuttos (already having EU PGI protection) 10

11 Strength Traditional production and consumption of meat and meat products, Croatian consumers traditionally oriented to domestic products Consumption is higher than production and growing Significant grain production for production of fodder concentrate Modern processing facilities with quality products recognized locally and internationally Opportunities EU RD funding possibilities for the modernization, production technologies, transfer of knowledge etc. Pig meat as recognizable traditional products, which can gain higher price on domestic and international market-improved branding and certification! Improvements in cooperation between producers, processors and possibly retail Increase the utilization of technological potential for the production of value added products. Weaknesses Unfavorable farm structure (economy of value) and insufficient specialization Numerous not specialized farms Small(er) holdings- lower compliance with environmental and hygiene standards Insufficient level of manure management and manure storage capacity Inappropriate genotype Weaker technology productivity (because of farm structure and breeding methods) Insufficient level of cooperation between producers and meat industry Threats Excessive import from the EU and other markets High costs of inputs Continuous oscillations of market prices and uncertain conditions Quality supply at lower prices from foreign markets. 11

12 Pig production- Serbia Pig meat production accounts between 11-14% of overall agro production registered households/farms involved in pig farming Average no. of heads/farm 9,6 No.1 consumed meat 45,9kg/citizen/year Consumption higher than production Production oscillates, with an obvious negative trend. Import has continuous tendency of growth, reaching its pick of 36 mill EUR in In the period the value of imports jumped fourfold, but export rose as well 12 Ministry of Economic Affairs Regional Office for Agriculture Western Balkans

13 Production structure - Serbia No. PIGS 2014 (in 000) 3236 Vojvodina Region 135 Belgrade Region 180 Serbia North 1505 Yr Total Fattened pigs Region of Sumadija and West Serbia 1080 Region of SE Serbia 650 Serbia South Source: Stat Office SRB 1

14 Pigs (no. heads) No. registered farms > Farms with defined capacities 696 Other facilities 464 Total number of registered farms for pig breeding

15 15 Strength Consumption of meat is very high (pork meat at the first place with 55-60% of total meat consumption 46kg/citizen in 2014) Consumption is higher than production Favorable geographical position (easy access to EU and other markets) Cheap and skillful labor Long tradition in pig farming Opportunities Improvement of farm management Low price of agriculture land Increase in farm size Improvement of farm production Improvement of genetics and housing Easy decrease of production costs by reorganization Subsidies from national budget EU pre-accession funds (IPARD) FTA with RF; CEFTA; Turkey; Weaknesses Numerous not specialized farms Small scale farming (< 20 sows) Lack of knowledge High interest rates on financial market Poor housing and general farm conditions Poor genetics low meat percentage (52%) Large fluctuations in meat and corn market prices Vaccination against CSF Lack of adequate PO/Coop/Associations Lack of organized production chain Animal welfare and environmental standards not in compliance with EU stand Threats Import tariff for pigs according to SAA Safeguard measures Unstable agrarian policy Unstable market prices

16 Dairy Sector - Croatia Due to abundant Gov t support in the last decade, faster growing sector, expanded domestic production and diaries expanding to neighboring markets Prices of dairy products at the EU level Consumption of milk per capita 185 kg (milk equivalent), cheese 7 kg In the last 10 years milk consumption somewhat decreases, cheese consumption increases Annual milk production around mill kg per year, 90 % cow s milk Annual import t, mostly from Germany, Hungary, Poland and BaH; cheese increasingly imported from the EU Croatia mostly imports fresh and condensed milk, less other dairy products Import of raw materials for dairy industry decreases, import of cheese and butter increases No quantity limitations for the import and export of dairy products, no system of issuing trade licenses Tariffs for milk and dairy products defined with WTO agreements 16

17 Dairy - Croatia Milk Production farms in diary sector (25% of total), predominantly small size, mostly also with production of beef and veal 43 % of farms 4-10 cows, only 3.3% more then 16 cows Majority of farms still in closed system, in lack of agriculture land, though in the last decade well modernized, sometimes inadequate technology and farm equipment with low level of specialized education Breeds still not optimal: 65% Simmental with annual production kg, 25% Holstein Friesian cattle with kg a year) Last trends show upraise in Holstein Friesian cattle 96% of produced milk of the EU quality Producers well organized in local and regional associations, while Western type of cooperatives are still missing Milk Industry 37 registered diary industries, the 5 largest (Dukat/Lactalis, Meggle, Vindija, Belje, Zdenka) process more than 90% of total quantities of processed milk Most of the other dairies craft-type processing up to lit milk/day Cheese -the largest of the four main dairy categories, overall share of 36% Unprocessed cheese remained the dominant product type with an overall value share of 95%. Dominance due to the enduring popularity of hard cheese products, accounting for 80% of unprocessed cheese current value Increasing demand for fromage frais and quark Growth in yoghurt and sour milk products 17

18 Dairy Sector - Serbia Low hygiene on the farm level Lack of farm management Majority of farms still in closed system Unfavorable breed structure (low % of Holstein Friesian cattle, Simmental is widely used for milk production as well) Majority of farms are small scale - average herd size is 2.8 dairy cows 3-9 heads/farm - 34,4 % head/farm - 6% Outdated production technology Non operational Milk testing laboratory Lack of representable dairy organization milk market consists of two branches: the first branch - dairy plants process milk and sell their products through shops and supermarkets, the second branch - milk is sold direct to local consumers or processed on farm into products and sold at green markets or direct sales to customers Data from agriculture census in 2012 show that ratio between the two is around 60 (first branch): 40 (second branch) 18

19 Dairy Sector - Serbia Farms and production parameters differ significantly in northern province and central Serbia (up to 40% higher in Vojvodina) 90 % of all milk is processed by 187 dairies with different processing capacity 10% of the milk is processed by additional more than 50 seasonal operating dairies The biggest 24 dairies, account for 85 % of dairy processing Size range No. of dairies Share of dairies Share of processed milk <3 t/day % 5 % 3 10 t/day % 10 % t/day % 20 % t/day 3 2 % 7 % >100 t/day 5 3 % 59 % TOTAL NUMBER: % 100% 19

20 Strength low price of agricultural land, lower input costs Existence of well-educated and experienced middle sized dairy farmers Significant grain production for production of fodder concentrate Consumer preference for domestic dairy products FTA with CEFTA, RF, Turkey SAA with the EU Opportunities Consultancy, training, technical assistance Possibilities to increase capacities for milk/meat production Strong support from national budget (CRO) EU Rural development funds + IPA-RD Existence of internationally competitive processors with EU expert licences Weaknesses Producers non - competitiveness on small production units lack of necessary standards in primary production and processing industry overly complicated state administration Low farm hygiene Lack of adequate farmers organizations Lack of EU production standards meat/milk (SRB) Regulatory frameworks are in the process of harmonization with related EU regulations (SRB) Threats Unstable agrarian policy Lack of operational national reference laboratory Price volatility Slow land consolidation process Due to higher yields per cow and restructuring the sector, there are less cows 20

21 Maarten Wegen Agricultural Attaché Embassy of the Kingdom of the Netherlands Agriculture, Nature, Fisheries and Food Quality Belgrade I Zagreb I Sarajevo T M bel-lnv@minbuza.nl