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Serbia sees increased agricultural exports to CEFTA markets with potential for further growth

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Last year, 1,720 companies from Serbia exported agricultural and food products worth €1.34 billion to the CEFTA market, marking a 6.8% increase from 2022. Agricultural experts believe there is potential for further growth, especially in the sale of traditional products like ajvar, as well as organic fruits and vegetables.

Goran Đaković, an agro-analyst and president of the Agropress Association of Agricultural Journalists, highlighted that the CEFTA agreement offers Serbian agricultural and food producers easier and more favorable access to regional markets by reducing customs barriers and simplifying administrative procedures. This, in turn, boosts the competitiveness of Serbian products and opens up new export opportunities, which can significantly contribute to the growth of Serbia’s agricultural sector.

Đaković noted that initial skepticism about CEFTA has diminished over time, and despite challenges, such as Kosovo’s violation of the agreement, it has proven to be largely successful. He emphasized the importance of markets like Bosnia and Herzegovina, Montenegro, North Macedonia, and Albania, which are traditional partners for Serbia due to their geographical proximity and strong trade relations.

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In 2023, Serbia exported over €4.5 billion worth of products to CEFTA markets, with a significant portion being food and agricultural products, alongside exports of electricity, cars, shoes, and medicines. Đaković attributed Serbia’s success in these markets to the country’s fertile land, long-standing agricultural tradition, and the high quality of its products, particularly in the production of corn, raspberries, apples, and other goods that are well-regarded in the CEFTA markets.

He also highlighted the benefits of geographical proximity, including lower transportation costs, faster delivery, and cultural similarities, which make CEFTA markets a natural choice for Serbian exports. These markets are especially valuable for absorbing surplus production, particularly seasonal goods, and for responding to changing market conditions.

Đaković sees substantial opportunities to increase the export of primary agricultural products and food to CEFTA markets, particularly in organic fruits and vegetables, processed meat products, dairy products, and specialties like ajvar and jams. He suggested that investments in quality and certification, along with the protection of geographical origin, could further enhance the competitiveness and value of Serbian products in these markets.

However, he also pointed out the existing challenges, including administrative and customs barriers, insufficiently harmonized standards among member countries, and the need for improved infrastructure and streamlined procedures.

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Data from the Serbian Chamber of Commerce shows that Bosnia and Herzegovina was the largest importer of Serbian agricultural and food products within the CEFTA agreement in 2023, with imports totaling €598 million, a 5% increase from the previous year. Montenegro was the second-largest importer, with €367 million worth of imports, up 10% from 2022, followed by North Macedonia, which imported €278 million worth of goods, a 0.7% increase.

Serbia’s exports to the CEFTA market primarily included bottled water, soft drinks, pastries, biscuits, animal feed preparations, corn, wheat, flour, and sunflower oil. Sunčica Savović, Director of the Association for the Improvement of Production and Export of Cereals and Oilseeds “Zita Srbije,” emphasized that CEFTA signatories are significant regional markets for Serbian cereals, oilseeds, and related products, as they are located in close proximity and are not major producers of agricultural crops themselves.

In 2023, Serbia exported substantial quantities of wheat, corn, barley, oilseeds (mostly sunflower seeds), edible vegetable oils, and flour to CEFTA markets, with a total export value of €309.37 million. Bosnia and Herzegovina was the largest buyer among CEFTA members, importing significant amounts of corn, wheat, wheat flour, and refined sunflower oil from Serbia.

Savović noted that the CEFTA market and Italy have seen increased imports of Serbian grains in recent years, particularly wheat. She also highlighted the importance of improving logistics, such as investing in the reconstruction of Serbia’s railway infrastructure, including the Belgrade-Bar railway, which would facilitate larger-scale transportation of goods to Montenegro and other destinations.

Luka Popović, General Director of Delta Agrar, one of Serbia’s largest agricultural companies, emphasized that the CEFTA agreement is crucial for improving economic exchange and reducing trade barriers between Western Balkan countries and Moldova. Delta Agrar exported goods worth over €5 million to the CEFTA market in 2022 and 2023 and sees significant potential for increased exports due to market proximity, fast delivery, and reduced transport costs.

Popović believes that further facilitation of customs procedures could enhance trade in the region, enabling better cooperation and business growth. Serbia currently holds the presidency of the Central European Free Trade Agreement (CEFTA), whose members include Albania, Bosnia and Herzegovina, North Macedonia, Moldova, Montenegro and Kosovo* under the UN Security Council Resolution 1244.

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