The USAID Competitive Economy Project is a four-year activity that aims to strengthen the manufacturing industry and increase sales of domestic products in the international and domestic markets.
This is why they support the Agro Belgrade Fair, the first specialized fruit, wine and vegetable growing fair to be held from January 30 to February 1 at the Belgrade Fair, of which eKapija is a media partner.
– AgroBelgrade 2020 will help draw the attention of international buyers and the Serbian public to the potential of production in the fruit, vegetable and viticulture industries and integration in the local and international markets. The focus will be on advanced agriculture, modern systems of cultivation and processing, that is, the things we need to appear on the market with goods that can find a buyer anywhere, and even more decisively make the step from traditional agriculture to professional production – says Aleksandar Pavlovic, the director of The USAID Competitive Economy Project.
When it comes to the Serbian market in the segment of the food processing industry, Pavlovic says that Serbia is still a low payment market, which is also reflected in the industry, because it is adapted to the consumer:
– We still have a large gray market, which creates unfair competition and creates additional problems for companies. Traditional Serbian brands, which have a high share in domestic consumption, are the most feared here, which is a specific feature of the countries of the former SFRY. But to innovate and create new trends, add value to products and so on, a leap forward is needed in creating a support system for new ideas. Shifts are also noticeable, especially in the premium food sector.
He adds that export industries, operating on different principles and working for standards-setting customers, are carriers of change in Serbia and leaders in embracing new concepts and technologies.
– Our project therefore decided to work in the fruit and vegetable processing sector, which are our most competitive export items – he points out.
He adds that while there is huge scope for adding value to the industry, Serbia has a great base for something like this:
– In terms of food processing, Serbia is 10% larger than Bulgaria, 15% larger than Croatia, but is 28 times smaller than France and 21 times smaller than Italy.
The USAID Competitive Economy Project also stimulates innovation in the high value product industry segment. According to Aleksandar Pavlovic, there has been a change in the drivers of purchase, which is no longer conditioned by ingredients, packaging, brand, but increasingly by the added benefits that the product brings: organic, vegan, off-season, geographical, sugar-free, health-labeled and so on.
– A higher value product relies on a motivated consumer who is willing to pay a higher price if expectations and quality are met. Taste, appearance, safety, nutritional value, speed of preparation, packaging are some of the important criteria of the consumer. Our market, although slow, is clearly following the trends. Trends are home delivery, organic and snacking, plastic free, natural – he adds.
Pavlovic believes that education is probably the most important element for companies, which also covers access to finance.
– This sector is filled with micro and small businesses, which are struggling for their slice of heaven. Knowledge and connections are key elements of survival in such a market. Access to markets, especially the EU, is something that requires special attention and support from businesses. Then managing the business itself, professionalizing firms and management models. It is a winning combination with which access to finance becomes much easier – he says for eKapija.
