For the first nine months of this year, the turnover of agricultural products on the markets in Serbia in current prices was 3.6 percent higher compared to the same period in 2023. However, producer prices of agricultural and fishery products in October 2024, compared to the same month a year ago, increased by 11.4 percent, according to the data of the Republic Institute of Statistics.
Green markets do not work at full capacity
The statistics also show that in the value structure of the turnover of agricultural products on the markets for the first nine months of 2024, the most represented vegetables – 32.8 percent, poultry and eggs – 16.2 percent, fruit and grapes – 16 percent and milk and milk products with a share of 15.6 percent.
These data, according to the Business Association “Markets of Serbia”, which brings together 24 utility companies that manage markets, speak in favor of the fact that markets have recorded a decline in turnover over the last ten years, which is primarily a consequence of increasingly pronounced competition from other forms of trade.
In an interview with “Agromedia”, Savo Duvnjak, executive director of the Business Association “Markets of Serbia”, among the most significant challenges faced by companies that deal with the communal activity of market management in Serbia singles out the increasingly pronounced competition from other forms of trade, the drop in average capacity utilization and changing needs. as well as customer habits.
“Due to all of the above, but also with the reduced interest of farmers and entrepreneurs in placing their own products on the markets, the average capacity utilization last year was 3.3 percent lower than in 2022. This means that, on average, around 42 percent of the stalls at the so-called green markets in Serbia were empty for most of the year,” says Duvnjak.
Markets bring together buyers and producers
However, the markets are still the only places where domestic food products of various kinds can be bought directly from the producers. According to our interlocutor, agricultural producers and entrepreneurs who have decided to do business in the markets build trust in these areas, acquire regular customers and create their own brands.
“On the markets, they offer what cannot be found in supermarkets, so their products become available to everyone. In other words, on the stalls you can still find a variety of vegetables or some fruit that is typical of the region where it comes from, cheese or dried meat products made according to a traditional recipe.
This is a reason for real optimism. In the time ahead, markets should be guardians of the sustainability of local production, food safety and the direct supply of quality and healthy food to citizens”, Duvnjak believes.
As one of the advantages in the operation of markets, he sees the large and underutilized potential for the production of domestic food, both in agricultural farms and in craft shops.
“There is, of course, the infrastructure that companies that deal with market activity have. That is why markets and their equipment should be invested rapidly, because they are a large and irreplaceable channel for the distribution of domestic products, easily accessible and very popular with customers, especially in urban areas”, says the executive director of the Business Association “Markets of Serbia”.
Green markets and transition strategy
Recently, the Business Association “Markets of Serbia” presented proposals for starting the market transition process at the Serbian Chamber of Commerce. The proposals are related to the positioning of markets as short distribution chains in the Agriculture and Rural Development Strategy of the Republic of Serbia for the next period, i.e. the initiation of an initiative to form a team that will work on the development of a national strategy for the preservation and development of market activities.
“Considering the structure of the products sold on the markets, and we are primarily talking about fresh vegetables, fruits and food of animal origin, the future of the market activity is inextricably linked to the status of this activity within the agricultural policy of Serbia. That is why we are advocating that markets, as short distribution chains focused on local markets, be given more comprehensive support and attention in the coming period.
In addition to the indisputable and great importance they have in the food security chain of Serbian citizens, markets can provide conditions for equal access to the market for all producers, regardless of the size and type of agricultural holding, and facilitate the introduction and application of quality standards, encourage innovative solutions in the production of domestic food products and creating a number of new brands”, says Duvnjak.
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The association’s position is that special attention should be paid to the promotion and adaptation to the real needs of producers of the two ordinances on the production of small quantities of food of plant and animal origin, which were created with the aim of stimulating and promoting the production of more valuable food in small farms.
They also add that the markets should be preserved and strengthened, both in terms of infrastructure and content, “as an important channel for the distribution of domestic products and provide them with maximum logistical and other support in adapting to the new market conditions of business”.
“Our goal is that the strategic documents for the development of agriculture and trade, which are drawn up for the next period of five or ten years, recognize the importance of markets as short distribution channels and their role in the food security chain of citizens.
For the realization of the market transition process, in accordance with the needs of the time, it is necessary to have wider social support and strengthening of ties between competent state authorities, local self-governments, companies engaged in this activity and farmers and entrepreneurs operating in the markets.
In practice, this means that we need to work on creating assumptions for the successful and profitable operation of small family farms and entrepreneurs who should be more intensively involved in sustainable development support systems”, explains Savo Duvnjak, executive director of the Business Association “Markets of Serbia”.
By the way, the mandatory fiscalization of market sellers has been postponed until the end of 2025. The decision was made thanks to the amendments to the Regulation on the determination of activities in the performance of which there is no obligation to record retail transactions through the fiscal cash register.
Source: www.agromedia.rs
