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The Government of the Republic of Serbia

In the service of citizens

Economic development based on agriculture

Novi Sad, 14 May 2011

Serbian President Boris Tadic said today at the opening of the 78th International Agricultural Fair in Novi Sad that agriculture is one of the industries on which Serbia will base its economic development.

Dusan Petrovic, left, and Boris Tadic

Author: Tanjug

Tadic opened this event, the largest of its kind in southeastern Europe, in the presence of Minister of Agriculture, Trade, Forestry and Water Management Dusan Petrovic and agriculture ministers from 18 countries.

The Serbian President emphasised that our country is strongly committed to developing the potential of agriculture and agricultural industry, noting that these sectors can absorb large redundant labour force and contribute to increasing employment.

Serbia cannot finance development of agriculture independently from its own budget which is why it needs cooperation with commercial banks, foreign donors and financial institutions, Tadic said.

He said that the increase in food prices, except from opening opportunities to Serbian agriculture, sets a challenge before the Serbian government of preserving the citizens’ standard of living.

In order for the future economic development to be based on agriculture, it is necessary to change the structure of agricultural production, Tadic noted and pointed out that now it is associated mostly with production of grain and that it is necessary to substantially increase livestock breeding.

He said that growth in exports of agricultural products in the first months of this year contributed to the reduction of trade deficit.

The Serbian President gave a special salute to ministers of agriculture from 18 countries and to farmers, to whom he said that Serbia is counting on their energy.

They endured the burden of the crisis and I am convinced that it is time for the state to help them, Tadic said.

Antonio Serrano

Author: Tanjug

Antonio Serrano, the Agriculture Minister of Portugal, the partner country of this year's fair, said that this country wants to strengthen ties with Serbia, especially in agriculture and food industry.

The Portuguese government believes in the process of joining the EU and Serbia can count on significant support from Portugal in the form of passing knowledge and experience in the process of European integration, Serrano stated.

Petrovic said in a statement to reporters that the main instrument of Serbia’s agricultural policy for 2011 has already been adopted and includes subsidised loans for agricultural producers.

He said that very soft loans will be available for livestock and crop production, vegetable growing, fruit growing and construction or reconstruction of commercial buildings which are needed in agriculture.

Also, the possibility of refinancing short-term loans will be given to owners of registered farms who took these loans in 2010, the Minister added.

According to him, processors have to be more efficient in order to create more room for food exports from Serbia and provide a sufficient quantity of high quality agricultural food products for the domestic market.

The fair in Novi Sad, which lasts until 21 May, will present the most important domestic and foreign potentials and achievements in agriculture, agro-industry and other related fields.

Along many exhibitors from Serbia, companies from more than 20 countries worldwide will participate in the fair, and another 35 countries will present their products and opportunities through their local representative offices.

More than 1,500 domestic and foreign exhibitors will be present in the halls and open fairgrounds where they will present the latest trends in food production, agricultural machinery, equipment for agriculture and food industry.

Special attention will be paid to the presentation of modern agricultural machinery and livestock, so thus around 5,000 animals will be displayed at the National Livestock Show, which is sponsored by the Ministry of Agriculture, Trade, Forestry and Water Management.

The exhibition of organic food will be organised for the first time, and special attention will be given to cooperatives and their joint appearance on the market.