January 6, 2012

Serbia sees agricultural growth and stabilised markets

Agricultural output reached a growth rate of 2% in 2011, and foreign trade balance will have a US$1.5 billion surplus, while the food offer has been stabilised, Serbian Chamber of Commerce president's adviser on agriculture Vojislav Stankovic said.

The reduction of trade margins related to basic food products to an acceptable level, 10% maximum, will result in a 10-15% drop in prices, Stankovic said.

The agricultural budget for 2012 has all the characteristics of a development budget.

The budget is much bigger than last year's and provides considerable funds to improve the irrigation infrastructure and subsidise agricultural production, he noted.

According to Stankovic, agriculture will have everything it needs to develop faster, while the construction of meteorological and biological stations and improvement of consulting services will raise productivity and competition.

"All of this means that products that have undergone a higher level of processing will be on the market, that all fears of low supply or demand will be dispelled, which will help provide a comfortable supply for the country's population at affordable prices," he said.

There are realistic chances of reaching an agricultural production level much higher than the existing, which stands at US$5.5 billion, and that the 2012 growth rate in agriculture could be as high as 2.5-3%, he pointed out.