agriculture
Increasing Budget Allocations, Yet Agriculture Declines: What Plagues Serbian Agrarian Sector?
The new Draft Strategy for Agriculture and Rural Development of Serbia for the period 2026-2034, currently under public discussion, reveals a series of structural problems in the domestic agrarian sector and shows that, despite increased budget allocations, the sector continues to lag in productivity, modernization, and demographic revitalization of rural areas.
TL;DR
- Agriculture's share in Serbia's GDP has fallen from 6.1% in 2014 to 3.8% in 2023.
- The livestock sector is weak, with significant decreases in cattle and pig populations, leading to lower production of meat and milk.
- Employment in agriculture has dropped significantly, with the number of workers falling from 508,000 in 2014 to 373,000 in 2023.
- Agricultural exports have doubled, but imports have tripled, reducing the export-import coverage ratio.
- The usable agricultural land area has decreased by nearly 200,000 hectares.
- Land degradation is a growing concern, with projections indicating high risk for over 40% of territory by mid-century.
- Serbian farms are predominantly small, averaging 6.4 hectares compared to the EU average of 17.4 hectares.
- The average annual production value per farm in Serbia is significantly lower than in the EU, due to lower technology adoption and financing access.
- The rural demographic is aging, with 44.7% of farm holders over 65 and only 0.9% aged 15-25.
- Technological equipment is outdated, with 73.8% of tractors older than 20 years; modern precision farming is used by only 1.3% of farms.
- Irrigation is underdeveloped, covering only 8.3% of agricultural land.
- Serbia's dependence on imports for fertilizers and seeds has increased, with domestic fertilizer production dropping significantly.
- Climate change poses a significant risk, with rising temperatures and increased extreme weather events causing substantial damage.
- The agricultural budget has increased substantially, but subsidies are increasingly directed towards direct payments, reducing funds for rural development.
- The strategy aims for modernization, digitalization, increased productivity, food sovereignty, and rural development to ensure competitiveness.