A new free trade agreement between Serbia and Egypt could soon bring Serbian agricultural products to the markets of Cairo. The presidents of Serbia and Egypt signed an agreement focusing on the export of agricultural products from Serbia. This agreement abolished customs duties on certain products: apples (40%), prunes (30%) and berries (20%). It is expected that this agreement will bring numerous benefits to Serbian fruit growers, although it is not yet clear how it will specifically affect purchase prices in the country and the expansion of fruit production in Serbia.
Fruit production in Serbia is one of the few bright spots of Serbian agriculture, while declines have been recorded in other sectors. In the last decade, Serbian fruit growers relied on foreign experiences to improve production. They invested in anti-hail systems, irrigation systems and new varieties, which led to increased production and the arrival of foreign buyers. Serbia currently has orchards on 193,000 hectares and annually produces 510,000 tons of apples, while consuming about 220,000 tons. This production generates an income of 125 million dollars from the export of apples alone.
Agreement and new possibilities
However, fruit purchase prices are still problematic for fruit growers. Last year, prices were between 15 and 25 dinars for plums, 30 and 60 dinars for apples, depending on the variety, and about 250 dinars for raspberries. Although the prices are different, fruit growers are often dissatisfied with the low purchase prices, which is especially true for raspberries. The problems in raspberry growing are pronounced this year, and high production prices and low purchase prices make the situation difficult. Mulberry growers face major challenges, including rising input prices and inadequate purchase prices.
The Egyptian market can represent an opportunity for Serbian fruit growers, but it is not realistic to expect an immediate increase in prices. Purchasing power in Egypt is not as high as in Serbia, which may limit the immediate impact of the agreement on prices. Serbian fruit growers need to put in a lot of effort to take advantage of the agreement, including the modernization of raspberry and plum plantations, in order to prevent the declining yield trends of the last ten years. These challenges point to the need for further work to improve production in order to maximize the benefits provided by the agreement with Egypt.
Source: Farmer
Source: boljazemlja.com
