Serbia - Agricultural Sectors

Agricultural Sectors

Last published date: 2024-07-15

Agriculture and food production is a crucial export sector for Serbia, accounting for over 10 percent of the country’s GDP and around 20 percent of all exports. The Ministry of Agriculture, Forestry, and Water Management (MAFWM) is responsible for the government’s international and domestic agricultural trade strategy, food processing, rural development, forestry, and water management. Serbia is the largest agricultural market in the Western Balkans, with strong agricultural production and food processing tradition. Serbia is a global leader in the production of non-GMO corn and raspberries. The food processing industry accounts for approximately one-third of Serbia’s entire processing industry. Over 20,000 food businesses are operational, and about 90% are micro, small, or medium-sized enterprises. This industry employs more than 120,000 people. The largest subsectors in Serbia by value are grains, oilseeds, dairy, meat, fruits, vegetables, wine, and confectionery industries.

Retail revenue in the Serbian market is approximately US$8–9 billion a year, which represents a relatively small market. Foreign retail chains hold greater than 80% of the total retail market, mainly divided between Dutch-owned Delhaize (owner of retail chains Maxi and Tempo) and the Croatian Fortenova Group (owner of retail chains Idea, Roda, and Mercator). Other international retail chains include Germany’s Metro, Lidl, and Greece’s Super Vero. Domestic retail chains represent only some 20% of the Serbian market: Dis, Univerexport, and Gomex. More than 50% of all food products are still sold through small grocery shops (estimated to number close to 30,000). Due to significant changes in consumer behavior during the COVID-19 pandemic, online retail increased by almost 400% since March 2021. Delivery services also expanded their business in Serbia by more than 300% over the past 3 years.

The Serbian market offers good opportunities for U.S. exporters of consumer-oriented agriculture products. Total U.S. agri-food exports to Serbia for CY2022 were valued at over $24.5 million. One of the major obstacles to increasing the U.S. market share in Serbia is 5-30 percent customs import tax levied at the port, compared to zero import taxes for products from countries with whom Serbia has signed free trade agreements. Important commodities imported from the United States: almonds ($7.6 million), consumption food/general ($3.7 million), hake ($2.2 million), whisky bourbon ($2.1 million), peanuts ($1.7 million) and vegetable seeds ($1.2 million). Opportunities also exist to expand U.S. exports of high-value products such as tree nuts, raisins, snacks, beverage concentrates, planting seeds and seedlings, bovine semen and embryos, flavors, and fragrances.

Due to export ban and export quotas on wheat, corn, and oilseeds during CY2022 and part of CY2023, Serbian export of grain and oilseeds were a record low. The decision to impose bans and export quotas on grains and oilseeds resulted in significant ending stocks in storage, low market prices, and significant losses in profits of the Serbian farmers and traders.

Serbia’s Agri-Food Trade Partners:

	Exports	Imports
EU	55%	50%
CEFTA*	40%	35%
OTHER COUNTRIES	5%	15%

Source: Serbian Ministry of Agriculture

*CEFTA: Albania, Bosnia and Herzegovina, North Macedonia, Moldova, Montenegro, Serbia and UNMIK (Kosovo)

Agriculture trade

The most important trading partner for Serbia is the EU. Exports to EU countries account for 55 percent of Serbia’s total agricultural exports, whereas imports from the EU represent 50 percent of Serbia’s total agricultural imports. Since 2001, Serbia has enjoyed preferential access for its agri-food exports to the EU. The Serbian products with the best production and export potential remain grains, oilseeds, sugar, fruits, vegetables, non-alcoholic beverages, water, and confectionary products. Effective January 1, 2014, under the Stabilization and Association Agreement, the tariffs on most EU agri-food products were reduced from 23 percent to zero percent. Only a few strategic agri-food products will continue to have duties (averaging approximately 3.2 percent). Serbia also has free trade agreements (FTA) with the Eurasian Economic Union (Russian Federation, Belarus, Kazakhstan, Kyrgyzstan, and Armenia), Turkey, EFTA countries (Iceland, Liechtenstein, Norway and Switzerland), and CEFTA (see table above) and Open Balkan Initiative countries (North Macedonia, Serbia and Albania). Serbia signed a Free Trade Agreement with China in 2023 that should go into effect in mid-2024.

Agricultural trade with the United States

Total agri-food imports from the United States to Serbia for CY2022 were valued at above US$24.5 million. Despite increased exports of the U.S. agriculture and food products from the United States to Serbia, customs tariffs are still the major obstacles to increase U.S. market share in Serbia. Currently Serbia is charging 5-30 percent customs import tax for many U.S. products, compared to zero import taxes for products coming from the European Union, CEFTA countries and other countries with whom Serbia has signed Free Trade Agreements.

U.S. agri-food exports consisted mainly of almonds, corn, sunflower seeds, vegetable planting seeds, dietetic foods, and concentrated proteins without dairy fats, alcoholic drinks, frozen fish and seafood, snacks, and fruits. The long-term forecast for these products is that demand will continue to grow. In the medium term, Serbia is also likely to increase imports of planting seeds, fish and fishery products, and poultry meat for processing, high-value consumer products, and beverages. Possibilities also exist for the expansion of U.S. exports of high value products such as tree nuts, raisins, snacks, beverage concentrates, planting seeds and seedlings, bovine semen and embryos, flavors, and fragrances.

In CY2022, agri-food exports from Serbia to the United States were US$96 million, a decrease of 4 percent compared with the CY2021. In 2022, Serbia enjoyed over US$70 million surplus in agricultural trade with the United States. The main agricultural imports from Serbia include produced and frozen fruits and vegetables, fruit juices, confectionary products, yeast, brandy, processed fruits (jams, puree, and jelly), sweet corn, wine, cheese, mineral water, and bakery products.

In 2009, Serbia adopted a law on Genetically Modified Organisms (GMOs) that bans the cultivation and use of these products without a scientific review process. The law is not in line with EU or WTO regulations. This law remains an obstacle to Serbia’s WTO accession and thus an obstacle for the United States to grant a status of Most Favored Nation (MFN), which also would lower import taxes for exports to Serbia that will make the U.S. products more competitive.

Agricultural Documentation

Phytosanitary Certificates: Phytosanitary certificates are required for most fresh fruits, vegetables, and other plant materials.

Sanitary Certificates

For commodities composed of animal products or by-products, Serbia as a pre-accession country is mostly requiring sanitary certificates same as EU countries. A certificate issued by the competent authority of the exporting country must accompany all shipments. This applies regardless of whether the product is for human consumption, for pharmaceutical use, or strictly for non-human use (e.g., veterinary biologicals, animal feeds, fertilizers, research). For more information, please see FAIRS Export Certificate Report and for more export guides to import regulations and standards please see Export Report:

https://gain.fas.usda.gov/Lists/Advanced%20Search/AllItems.aspx

U.S. Foreign Trade with Serbia in US$

Year	U.S. Agri-Food Imports from Serbia	U.S. Agri-Food Exports to Serbia
2022	95,955,250	24,480,134
2021	107,411,900	28,125,200
2020	58,085,100	23,498,200
2019	38,666,700	26,287,900
2018	45,173,340	30,315,262
2017	38,465,899	27,124,988
2016	34,897,894	33,671,985
2015	38,244,655	28,533,200
2014	32,861,926	30,182,295
2013	24,406,902	30,373,349
2012	15,064,255	25,919,039