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Serbia faces challenges in wheat seed production amid growing demand for domestic grain and milling products

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In 2024, approximately 580,000 hectares in Serbia were planted with wheat, but only half of these were sown using certified seeds, according to data from the Grain of Serbia Association.

Miroslav Malešević, a small grains expert, highlights a serious issue regarding the lack of locally-produced seeds. Serbia requires around 120,000 tons of seed wheat each year, but only 65,000 tons were produced in 2024. As a result, the use of so-called “attic wheat” has become more widespread. Although this wheat is initially cheaper, it presents a greater risk of disease and requires additional expenditure on protective measures. To encourage the use of certified seeds, the government increased subsidies from 6,000 to 17,000 dinars per hectare. Despite this, experts argue that this measure alone is insufficient without a broader strategy to revitalize seed production.

The weather conditions for autumn sowing were favorable, with about 70 percent of areas being seeded within the optimal period. However, grain quality issues, along with the presence of aflatoxins and diseases like sugar beet root rot, complicate the situation, according to agro-analysts.

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Malešević warns that without domestic seed production, Serbia will increasingly depend on multinational corporations. This trend is already noticeable in corn production, where imports dominate. If local seed production is not strengthened, Serbian farmers may face rising costs and reduced competitiveness.

The milling sector in Serbia, an important part of the food industry, uses wheat, corn, barley, and rye to produce flour, semolina, bran, and specialized products. The Serbian milling industry includes large industrial mills, medium-sized enterprises, and smaller family-run mills, offering a wide variety of products tailored to different market needs. Larger mills often operate within integrated food industry systems, while smaller mills specialize in niche products.

Although production is mainly focused on meeting domestic demand, a significant portion is also exported to countries in the region (Bosnia and Herzegovina, Montenegro, North Macedonia) and the European Union. The domestic market for milled products remains stable, with wheat flour being the dominant product. There is also growing interest in wholemeal and specialty flour products, reflecting global trends toward healthier eating.

Flour prices in Serbia vary depending on the type and grain used. Wheat flour type-400 costs around 69 dinars, while spelled flour is priced at 185 dinars.

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MB Komerc, a milling company from Ruma, has been producing mill products for over 20 years, including wheat flour (T-400 and T-500), whole wheat, black flour, and flour for pancake and pizza dough. According to the company, the best-quality wheat in Serbia accounts for no more than five percent of the total crop. However, MB Komerc has developed a system that ensures the wheat is thoroughly analyzed for quality, including testing for GMO seeds and other elements that affect quality. They focus on processing only the best wheat, which results in high-quality products.

MB Komerc ranks first among Serbian milling companies in terms of profitability, having made a profit of 259 million dinars in 2023. Their stability is confirmed by a similar profit of 260.8 million dinars in 2022.

Danubius, a milling company from Novi Sad, ranks second in terms of profitability, with a profit of 243.6 million dinars in 2023. Danubius has consistently performed well, with profits of 182.3 million dinars in 2021 and 175.8 million dinars in 2022. Since becoming part of the Delta Corporation in 2006, Danubius has modernized its operations, including upgrading its mill and silo equipment and introducing a new pasta production line.

Žitoprodukt, a company from Bačka Palanka, ranks third in the sector with a profit of 80.7 million dinars in 2023, the best result in the last three years. Founded in 1880 and active in its current form since 1960, Žitoprodukt specializes in processing and grinding corn. The company produces a range of corn-based products, including corn semolina, corn flour, polenta, and corn meal. It also focuses on grain drying and storage, with a capacity of 22,000 tons. Žitoprodukt has been a long-term partner for agricultural producers and grain traders.

As Serbia’s wheat and milling industries face challenges related to seed production and quality, these companies are working to meet growing domestic and international demand while navigating complex issues in the agriculture sector.

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