1. Rural Development and Poverty Reduction
MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT
Republic of Serbia
Rural Development and Poverty Reduction
Goran Zivkov
Belgrade, July 2006

2. Contents of the Presentation
Serbian agriculture – in general
Rural development and rural economy
Poverty in rural areas
Causes
Consequences
Strategy for developing agriculture and addressing the problems
Measures of the agrarian policy for reducing rural poverty
Discussion and proposals

3. Agriculture in Serbia

4. Agriculture Indicators Still very important
Agricultural land: 5.7 million ha
Arable land: 4.2 million ha
87% private ownership
Around 0.7 million farms
Average farm size: 3 ha (10.6)
Share of primary production is 14 percent in GDP

5. Share of agriculture in GNI Share of agriculture in GNI
Country
GNI per capita
Share of agriculture in GNI
United Kingdom
25 120
1.0
Germany
23 560
1.3
Italy
19 390
2.8
France
22 730
2.9
Slovenia
9 760
3.1
Spain
14 300
3.6
Poland
4 340
Slovakia
3 760
4.1
Argentina
6 950
4.8
Russian Federation
1 750
6.7
Kazakhstan
1 340
9.0
Brazil
3 060
9.2
Croatia
4 410
9.7
Belarus
1 300
10.7
Macedonia
1 700
11.8
Bulgaria
1 670
13.9
Bosnia and Herzegovina
1 270
14.3
Romania
1 710
15.0
Ukraine
720
16.6
Azerbaijan
650
17.3
Serbia
 2 900
21.0
Georgia
600
22.1
Moldova
4 00
26.0
Armenia
700
27.7
Turkmenistan
950
28.8
Tajikistan
180
29.4
Uzbekistan
550
34.1
Albania
34.2
Serbia’s wealth measured by the GNI is at the level of developing countries
Share of agriculture in the GNI is at the level of African countries
Country
GNI per capita
Share of agriculture in GNI
World
5 232
6.2
Developed countries
19 766
2.6
Developing countries
1 274
11.9
Asia
928
13.4
South America
3 750
7.6
Africa
482
17.1
Europe
28 095
2.1
Countries in transition
1 940
8.2
Serbia
2 900
21.0

6. Farm Capacities Policy Challenge
Important for providing food and food safety, so that they should have access to inputs, but are outside commercial flows
To encourage them to transfer to productions of a greater value or to become commercial farms
Ensure for them further development and enlargement
Create methods for them to develop a democratic decision-making structure and to transform them to serve producers
Restructuring and privatization
Ownership over land
Ownership over land %
Number of cows
Number of cows %
Number of farms
Farms
Less than 1 ha 4%
1-3 6%
200,000
Small farms
1- 5 ha
35%
3-5
41%
400,000
Commercial farms
More than 5 ha
46%
More than 10
44%
100,000
Cooperatives
avg 400 5% 50 1%
510
Complexes
avg 700
10%
100 8%
549

7. Production Index 2000 – 2005 (previous year = 100)
Trend line

8. Production Trends 2000 – 2005

9. Trade in Agricultural Products (mill. USD)

10. Trade with EU (mill USD)

11. Rural Areas

12. Criteria for measuring the rural population A lot or a little
Despite the several-decade long trend of social and economic devastation, 44% of the inhabitants of Serbia live in the village
Share of rural population in total population
Criteria for measuring the rural population
A lot or a little
Effects of the increase of the population in rural areas?
- Expense
+ Real estate value
+ Use of living space
+ Balanced development
+ ...

13. Still a very high share of the agricultural population
Almost all village inhabitants are engaged in agriculture, and for a third this is their main activity
Share of agricultural population in the total urban and rural population
Still a very high share of the agricultural population
Underdevelopment of other sectors
Short-lasting refuge
Economic growth / Development of the service sector in rural areas / Rural diversification

14. Leaving villages
Number of villages in Serbia

15. Process of the population’s migration from villages to towns
Leaving villages
Process of the population’s migration from villages to towns
Being engaged in agriculture is a difficult and painstaking process
Marginalization of the village (disparaging and belittling attitude to the village)
Entertainment and recreation practically do not exist in rural mountainous areas
Problem of finding a spouse
Petar Bjelica, Ph.D.
Number of settlements where population growth has been registered (53-91)
Number of settlements where population reduction has been registered (53-91)
1856
4087

16. Tasks of the Rural Policy
Drawing up a National Action Plan for the development of the village and support to the drawing up of regional and local action plans
Creation of space for the affirmation and use of territorial specificities
Decentralization of support to rural development through the development of an interactive link between Government institutions and the local community
Support to economically valuable projects created at the level of the local community and individuals in rural environments, as well as the promotion and exchange of examples and good practices with similar areas.

17. Tasks of the Rural Policy
Support to the development of sustainable agriculture with autochthonous products that have a geographic origin, the development of processing and the local market through the promotion of rural, agro and ecological tourism
Harmonizing economic interests in agriculture with interests of environmental protection and the reduction of agriculture-related contamination

18. Rural Poverty

19. Large and considerably larger than among the urban population
Rural Poverty
Large and considerably larger than among the urban population

20. Regional imbalance and critically large in certain areas
Rural Poverty
Regional imbalance and critically large in certain areas

21. What are the main causes of poverty increase/reduction in rural areas
Annual variations and dependence on natural conditions
The still large impact of agricultural production on poverty
A considerable number around the poverty line
A larger impact on temporary, and not chronic poverty
The need to find a way to minimize the impact of an extremely bad year

22. Quantity Supply Demand Price Price drop due to larger supply
Price increase due to lower supply
Demand
Price

23. Quantity
Supply
How to minimize the impact of extremely bad years when we have a shortfall in all productions and a considerably reduced demand due to the high price which cannot compensate for the drop in production?
Price drop due to larger supply
Price growth due to lower supply
Demand
Price

24. What are the main causes of poverty increase/reduction in rural areas
Development of the infrastructure which is to offer the
basic services
Link between education and poverty
Basic access to health institutions
Larger expenses due to inaccessibility (of green markets, the hospital)
...

25. What are the main causes of poverty increase/reduction in rural areas
Agrarian policy and state policy
Industry/services - agriculture transfer
Agricultural producers - consumers transfer
Non-functioning of the farmers’ pension system
Policy resulting in refugee, IDPs…

26. ECONOMIC GROWTH AND DEVELOPMENT
ABSORBING THE TRANSITION SHOCK
SOCIAL WELFARE MEASURES

27. Main strategic directions
Type
Goal
Abbreviated
Economic effect
Economic
A sustainable and efficient agricultural sector which can compete on the world market, contributing to the growth of the national income
Increase in competitiveness
Profit
Social
To ensure that the quality and safety of the food satisfies the needs of consumers
Food safety
Spending
To ensure support to the living standard of people dependant on agriculture, and who are unable to follow economic reforms with their development
Support to the standard
Support to the sustainable development of the village
Development of the village
Profit and spending
Environmental protection
To preserve the natural environment from the devastating effects of agricultural contamination
Political
To prepare Serbia’s agriculture for integration in the EU
Accession to the EU
Complex
To harmonize the policy of domestic support and agricultural trade to WTO rules
Accession to the WTO

28. Agrarian budget 2000-2006 (million dinars)
(25 bn dinars = 270 million euros in 2006)

29. Modernization of Agricultural and Adjustment to the WTO & EU
Budget Goal
2005 … +1…..______________n_______________….-1…..EU

30. Support Structure

31. Main Policy Directions Policy Separation
MARKET SUPPORT: The abolition of support to prices and payments by hectare and replacement with subsidies for inputs (a reduction from 90% to 38%)
STRUCTURAL SUPPORT: Introduction of payments for rural development to support investments (25% of total support)
CREDIT SUPPORT: Introduction of credit support (22%)
INCOME SUPPORT: Considerable support for income (12%)
2. Alleviating transition shocks
1. Economic growth and development
3. Social welfare measures

32. 1. Economic Growth and Development

33. Adoption of the basic principles of rural development.
To create adequate social and economic conditions in village environments and to ensure their contribution to the country’s economic growth
Adoption of the basic principles of rural development.
To make a categorization according to the EU model of less favorable areas for production
To draw up a Program for the development of ecological agricultural systems, especially for marginal areas and areas of protected nature
To adopt regional, local action plans for rural development
To form a Rural Development Agency
To prepare a rural development program for using the funds from the agrarian budget and funds from donations
PROPOSED STRATEGY, Novi Sad, 12 November, 2004

34. Rural Development and Investment Support

35. Rural Development and Investment Support

36. Rural Development Support FOCUS ON THE USER
PROGRAM
OTHER
LFA
1. Promotion of production and marketing
Farms,
Machinery,
Storage capacities…
30% %
2. Rural diversification
30-40%
40-60%
3. Rural infrastructure
40%
50-60%
Investment Support
FOCUS ON THE INVESTMENT
1. Establishing cattle-raising farms
2. Improving milk quality
3. Increasing storage capacities
4. Machinery and equipment
Irrigation
Polythene greenhouses and greenhouses
Sowing machines, sprayers, ....
OTHER. Introduction of standards (HACCP, ISO…)
Establishing orchards and vineyards
Selection measures in cattle-raising
Land regulation measures ...

37. COMPETITION 3 – VILLAGE PROMOTION
3.1.1 Agro-tourism
3.1.2 Tradition crafts
3.2.1 Promotion of local products
3.2.2 Cultural and sociological activities
3.3.1 Education of the village population
3.3.2 Promotion of integration
3.3.3 Renewal of farms
3.3.4 Agro - Eco Demo farms
3.3.5 Excursions
3.4.1 Village garbage dumps
3.4.2 Pits, graves
3.4.3 Wind-breaks
3.4.4 Afforestation
3.4.5 Protection from erosion
3.4.6 Village dumps
3.4.7 Polythene greenhouses
3.4.8 High mountainous regions???
3.4.9 Mowing meadows
COMPETITION 1 – PRODUCTION AND SALES PROMOTION
1.1.1 Cattle imports
1.1.2 Equipment and machinery
1.1.3 Farms
1.2.1 Curing, refrigeration, packing plants...
COMPETITION 2 – VILLAGE INFRASTRUCTURE
2.1.1 Power grids
2.1.2 District roads
2.1.3 Waterworks
2.1.4 Sewage system
2.1.5 Village households
2.1.6 Agro-business centers and incubators
COMPETITION 4 – ORGANIC PRODUCTION
4.1.1 Promotion and protection
4.2.1 Education
4.2.2 Demo farms
4.2.3 Excursions and regional cooperation
4.3.1 Field conversion
4.3.2 Conversion of cattle farms
Certification
COMPETITION 1
Farms
COMPETITION 2
Dairy industry
COMPETITION 3
Warehouses, refrigeration plants, silos, curing plants, wineries

38. (Areas with poorer conditions for agricultural production)
Peć
Istok
Zubin Potok
Zvečan
Leposavić
Kuršumlija
Tutin
Novi Pazar
Raška
Sjenica
Prijepolje
Nova Varoš
Ivanjica
Priboj
Čajetina
Užice
Bajina Bašta
Nova Crnja
Žitište
Sečanj
Beočin
Irig
Alibunar
Kovin
Majdanpek
Žagubica
Bor
Boljevac
Soko Banja
Knjaževac
Svrljig
Bela Palanka
Gadžin Han
Pirot
Babušnica
Dimitrovgrad
Crna Trava
Surdulica
Bosilegrad
Trgovište
Preševo
Kačanik
Štrpce
Prizren
Opolje
Gora
Dečani
Kladovo
Kučevo
Less favorable areas
(Areas with poorer conditions for agricultural production)
INCENTIVES OF THE MAFWM FOR 2006

39. LFA
A marginal area is an area of a municipality on whose territory there exist
natural (high altitude, poor land quality, slanting terrain, floods and all types of erosions) and
legal (protection of nature and protection of water sources) restrictions for the development of intensive agricultural production on large areas.
Insufficiently developed areas (Law on Insufficiently Developed Areas of the Republic of Serbia for the period until 2005, Official Gazette of RS number 53/95 – settlements in the territories of the mentioned municipalities from articles 3 and 4 including the municipal center),
The altitude of the settlement, i.e. the area where the investment is being realized, above 600 m and
Protected areas – national parks and areas of exceptional natural value of special importance (Law on the Spatial Plan of the Republic of Serbia, Official Gazette of RS number13/96).

40. Dependence on demand
Grants for
rural development

41. ECONOMIC COMPANY/ACTIVITY
TYPE OF PROCESSING
CONSULTING COMPANY
APPROVED AMOUNT
REQUESTED FUNDS FOR
PRODUCTION
"HIGLO" AD
refrigeration plant
ConsAct Mr. Janoš Varga
525,840.00
For imports and costs of certification HACCP
Deeply frozen vegetables, peas and green beans 2000t, and they also produce: cauliflower, peppers, carrots, potatoes, parsnip, kohlrabi and broccoli.
"DONIMPEKS" ДОО
Qualitass education
800,000.00
For the costs of introduction and certification HACCP and ISO 9001
peas-630, green beans-840, carrots-290, peppers-660, spinach-480, onions-300, corn-1050, parsnip-100, celery-110t.
"DELTA FUNGI" DOO
mushroom processing
AQA
639,200.00
" JUGPROM" DOO
fruit and vegetable processing
380,800.00
"MARNI" DOO
refrigeration plant, mushrooms
AQM
For the costs of introduction and certification HACCP
STR″ŠULOVIĆ″
292,400.00
mushroom processing, Capacity usage 100%
"DELIKATES SPICES & PEPPER" DOO
spice pepper processing
Quality consulting
217,800.00
80% of total production is exported to the foreign market
"SLOVAN - PROGRES" DOO
Fruit and vegetable processing
Jugoinspekt
399,000.00
"MARTIS COMERCE" DOO
465,460.00
90% exported to EU countries
"AGRO-MOBIL" DOO
production of seed and mercantile potatoes
Tehnomag
production of seed and mercantile potatoes, Capacity usage 90%
"3 MART" DOO
medicinal herbs, mushrooms
Alfa-team
309,600.00
JUROFUNGO DOO
mushrooms
353,600.00
POLIMARK
ketchup, mayonnaise and mustard production
186,104.00
For re-certification in HACCP system and ISO 9001
PK "PRVI MAJ" AD, refrigeration plant RUSKI KRSTUR
220,160.00
frozen vegetables (peas, sweet corn, root vegetables, broccoli, cauliflower, onions and peppers).
DOO "POLO"
Gradac
479,080.00
vinegar production and warm vegetable processing (pickles, peppers, beet, pickled foods and red-pepper chutney)
"MERKOP" DOO
fruit and vegetable preservation
Ingel
798,080.00
pickles, chili peppers and peppers. Capacity usage 60%
"FUNGO-JUG" DOO
forest fruit processing (Boletus mushroom and chanterelle), fruit processing - purchase, freezing and packaging (raspberries, blackberries, strawberries, plums, currants and blueberries)
"RUMEN" ZZ
Q expert
preserved vegetables (beet, tomato puree, mild ketchup, meat and vegetable stew, cucumbers, peppers) - capacity 2260t. frozen vegetables (peas, green beans, carrots, potatoes (cubes and French fries), parsley, parsnip, peppers, onions, vegetbles for soups and vegetables for soups and chowders, spinach, cauliflower - capacity 2170t.
"INTERFOOD 20" DOO
Mushroom processing
mushroom purchase and processing (fresh, dry and pickled (Boletus mushroom and chanterelle)
ZZ "VOĆAR - DRAGAČEVO"
Processing of potatoes into French fries, reception and storage of berries, drupes and other fruit, as necessary. The refrigeration plant capacity is 5000 t, under way is the construction of a refrigeration plant of a 1000 t capacity. Total freezing capacity is 120t/24h. Cooperation with 120 households
"TITEL BRAND" TITEL AD
Warm and cold fruit and vegetable processing (peas, carrots, tomatoes, peppers, cucumbers, sweet corn) and (apricots, plums, sour cherries), capacity kg, usage 40%
FROSTEX D.O.O
268,800.00
frozen fruit
"J.P.L. SPECIAL" DOO
444,620.00
The refrigeration plant is located in Kosjerić.
FLORA
SMS Consulting
770,000.00
frozen fruit purchase and processing
DRAGAČEVAC PROMET DOO
LIBERTAS D.O.O
"STANIĆ" DOO
446,880.00
Two items
deep freezing, warehousing and fruit processing, primarilz raspberries. Exports are to the West European market.
"JUŽNI BANAT" AD
scope of production: fruit t/god, grapes t/year, brandy l.
"EXAL" CO DOO
Citadela
fruit and vegetable deep freezing, fruit and vegetable drying.
raspberries-1030 t, blackberries-900 t, strawberries-580 t, sour cherries-1430, plums-600, peaches-450, apricots-840, pears-520, quince-410, currants-190, forest blueberries-180, forest blackberries-140t.
ABD PROM DOO
350,880.00
frozen plums, sour cherries
AGROLISA DOO
Kom projekt
533,800.00
frozen fruit, mostly raspberries
"PAMS" DOO
purchase, processing and exports of forest fruits and fruit (mushrooms, strawberries, raspberries and plums).
MENEX
598,400.00
ZADRUGAR DOO
584,800.00
SIROGOJNO COMPANY DOO
617,728.00
frozen fruit purchase and processing (raspberries, blackberries)
JUGOTREJD DOO
SMS
518,500.00
purchase and fruit processing (raspberries and blackberries)
raspberries PRODUKT DOO
274,079.00
cultivation, processing and exports of frozen raspberries. The refrigeration plant has a total warehousing capacity of 3,000 tons
TRGOVINSKO PREDUZEĆE "GRADINA DMR" AD
Q expert international
448,000.00
Four chambers of a 600 t capacity for warehousing frozen fruit and vegetables, tunnel for freezing of a 20t/24h capacity. The fruit and vegetables are purchased from agricultural producers (raspberries mostly 400 producers)
DOO "BUDIMGRAD"
ARS
frozen fruit purchase and processing (raspberries, blackberries and plums). Tunnel for deep freezing 8t/24h and 15t/24h. Chambers for the simultaneous warehousing of 500t.
MIRALEX FRUIT DOO
SMS consulting
343,400.00
Exports to EU countries (France, Germany, Austria, Italy, Belgium). Production of frozen raspberries (mostly Rolend)
"BSF" AD
633,080.00
HIBRID AD
Two refrigeration plants for the purchase and processing of fruit (frozen) 1000 and 1100t, almost everything is exported
"YUGENT" DOO
Preliminary contract with a certification company and bill of charges
frozen fruit (raspberries)
EURO FRIGO DOO
"D.M.B" DOO
Contract with a certification company and bill of charges
Juice of berries and forest fruits,non-concentrated, frozen raspberries
"FRUKOM" DOO
frozen raspberries
ZA FRUIT DOO
production, purchase and fruit processing, 90% is exported, one of the founders is the German company Obst Trautner GmbH
"PROGRES PROMET-refrigeration plant MILENIĆ"
They do not have a preliminary contract with a certification and consulting company, a bill of charges and a certification deadline
DOO "PANIĆI"
purchase, processing and fruit freezing (sour cherries, raspberries, blackberries, plums). capacity 1500t, installed capacities 450t, daily processing 35t.
"FRIKOS" DOO
frozen fruit (raspberries, blackberries, sour cherries, plums, strawberries) and mushrooms. Warehousing capacities 800t.
AD "EUROFRIGO"
purchase, freezing, finishing (sour cherries, plums, raspberries, blackberries). 90% exports
PREDUZEĆE "INTERFOOD 60" DOO
"RADENKO POPOVIĆ" DOO
DOO "TRI KLASA"
purchase i fruit freezing (strawberries, sour cherries, raspberries, blackberries, plums)
"AGROFOST" DOO
freezing, finishing and packaging of raspberries, blackberries, plums and sour cherries
"BERY-EXPO" DOO
They do not have an offer from a certification company
frozen fruit (raspberries, blackberries, plums, sour cherries strawberries and dog-rose berries)
"ORBITA" DOO
purchase finishing and exports frozen raspberries
"LEDENICE" AD
FON
Offer of a certification company
purchase and fruit processing
HORTO FRUITS INTERNATIONAL
fruit processing (purchase, freezing, finishing i packaging). Berries (raspberries, blackberries, strawberries) and plums
"GOLDEN FALCON" DOO
TUV
purchase of fresh fruit, freezing, warehousing, processing, packaging and sale
"GODENS" DOO
ConsAct
They do not have a certification deadline and an offer from a certification company
"FRIGOFRUTTI" DOO
Bonex
Frozen fruit production
"AGROTEKS" DOO
Frozen fruit (raspberries, blackberries plums)
"ESKIMO S PRODUKT" DOO
capacity 200t, two standard tunnels of 5 and 10 t. Deep freezing of fruit and vegetables and the pre-freeying of fresh fruit, grapes and vegetables.
LUKAFOOD DOO
processing and freezing of fresh and frozen berries, processing fresh, dry, frozen and pickled mushrooms. Scope of production 800t per year
"MIG-PROMET" DOO
Chamber of a 150t capacity.
"BELFRUT" AD
capacity t. raspberries blackberries, strawberries, plums, sour cherries, apples and other
"ML" DOO
Delpas
offer from a certification company
One line for the sorting andpackaging, frozen fruit in packages of10, 5, 2,5 and 1 kg., as well as 450, 250 and 284 g.
"PANON" AD
Beverages
vinegar production l.
"FRUVITA" DOO
production of fruit juice and non-alcoholic beverages based on fruit, the fruit usage for the peach and apricot is 70% , for berries and baccate fruilt is 90%.
" EKOFARM" DOO
Support
521,976.00
Wild apple vinegar, juices and sirups made of forest fruits, fruit wines made of forest fruits
" DUGA FRUIT" DOO
refrigeration plant for keeping frozen mash and concentrates of a 70t capacity. Production line capacities: milk pack 1l 3600 l/h, milk pack 02l 1200l/h and glass bottle 0,125 and 0,2 5000kom/h, exports (Macedonia, BIH, Albania)
FRESH & CO DOO
" NEKTAR " DOO
Q quality
production of fruit and vegetables on a space of 2000 ha. Exports: Canada, Australia, Switzerland, EU, China, US, BiH, Macedonia and Croatia
RESAVA KOMERC DOO
629,000.00
1000 t, processing of cucumbers, pepers and chilli peppers into jams and preserves. 90% sour program and 10% sweet program. Mostly the entire production is exported.
DOO VOĆAR-KOPAONIK
Total fruit warehousing capacity is77000 liters. The basic raw material for production (fruit and grapes) is own production and purchase from agricultural producers of the region. Exports mostly go to Austria, Sloveni and Switzerland. 80% goes to the foreign market.
processing of fresh fruit and vegetables (plums, sour cherries, raspberries, blackberries, strawberries, apricots, peaches). Capacity usage 100%. Exports almost 100% (France, the Netherlands, Belgium, Germany)
production, processing and packaging of fruit and vegetables (production of prunes). Capacity usage 100%.
"VINO ŽUPA" AD
Qualitas education
For the production of juices and non-alcoholic beverages in a controlled atmosphere t, refrigeration plant for warehousing berries and forest fruits t.
AD "SWISSLION MILODUH"
Yumek
production of alcoholic, non-alcoholic beverages and marmelade
"VOĆAR-PALANKA" AD
Warm fruit and vegetable processing, Capacity usage 52%,
"RADO-SLOV-I" DOO
fruit processing
VULOVIĆ I DR. MEGA-F.KOMERC OD
They have no certification deadline
PTP"KARLO EXPORT IMPORT" DOO
Warm fruit and vegetable processing
fruit and vegetable processing (HLADNJAČE)
Centralna Srbija
159
52 Imaju ili su u procesu uvodjenja HACCP and ISO 9001
Vojvodina 29
fruit and vegetable processing (FABRIKE ZA TOPLU PRERADU)
Ukupno 60
20 imaju ili su u fazi uvodjenja HACCP and ISO 9001
Subsidies for
introducing
standards

42. 2. Alleviating the Transition Shock

43. Fuels Fertilizers 100 liters 16 dinars Registered
Input
subsidizing
Fuels
Fertilizers
INCREASED CONSUMPTION
100 liters
16 dinars
Registered
Finding new markets
Consumption growth on existing market
Increased purchasing power
Lowering of cost price
30% refund with a receipt
Better product marketing
Integration
Introduction of new technologies

44. Credit support MAIN GOAL: DURATION: NECESSARY FUNDS: ACTIVITIES:
To develop the financing of the agricultural sector from real sources, instead of burdening producers
Development of a credit history
Increased competitiveness by enabling producers to gain access to capital
5 – 7 years
700 million to 1 billion EUR
To support the credit market with money from the agrarian budget
To withdraw and leave financing to banks …
Necessary funds
Bank funds
Funds of the agrarian budget
The establishment of a credit history (acquired trust)
Changed structure
Change in the payment system through the establishment of a register

45. Short-term Credits in 2005
A total of over 23,341 short-term credits paid
Average credit value 69,879 dinars
2005
2006
Up to 1 ha 10
1-5 ha 40 60
5-10 ha 80
120
Over 10
240

46. Long-term credits in 2005 A total of over 1,923 long-term credits paid
Average value 16,188 EUR

47. 3. Social Welfare Measures

48. Main goals of agriculture in Serbia
Abbreviated
Economic effect
Sustainable and efficient agricultural sector which can compete on the world market, contributing to an increase in the national income
Increased competitiveness
Profit
To ensure that the quality and safety of food satisfies the needs of consumers
Food safety
Spending
To ensure support to the living standard of people depending on agriculture, and who are unable to follow the economic reforms with their development
Support to the standard
Support to sustainable village development
Village development
Profit and spending
To preserve the natural environment from the devastating effects of agricultural production
Environmental protection
To prepare Serbia’s agriculture for integration into the EU
Accession to EU
Complex
To adjust the policy of domestic support and agricultural trade to WTO rules
Accession to WTO
Support to non-commercial farms
40,000 dinars per household member
People above 55 years of age
Farmer insured for a minimum of 10 years

49. Development of a Land Leasing Market
the development of a land leasing market implying that the land is cultivated by the one who is able to do so in a more successful manner;
the joining of cultivated land;
support to households whose members are no longer able to cultivate their land due to their age.
Producer above the age of 60
Producer below the age of 40
4.000 dinars +
4.000 dinars
NEW

50. Message
Poverty requires the special attention of all the factors of society and its reduction must be a priority
Without understanding the essence of lasting and occasional poverty it is impossible to check it
Rural poverty is the result of the long-lasting neglect of a balanced development, which is why it is necessary to establish coordination among all those who can contribute to its reduction