Project Fiches-Austrain Attache

May 2013

PROJECT FICHES

CITY OF NIS, DEPARTMENT FOR AGRICULTURE AND

RURAL DEVELOPMENT

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Prepared by:

Ivan Pavlovic Coordinator of the Group for Projects Implementation and Coordination

City of Nis, Department for Agriculture and Rural Development

Address: Kej Mike Paligorića 18a, 18000 Niš E-mail address: [email protected]

Fax: +381(18)290243 Telephone: +381 (18) 505698

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We live in challenging times when it is difficult to predict future events but this should not prevent us from trying to perceive our future more deeply and to fit our plans into the strategies adopted by countries and communities in which our market is orientated. The starting point of our thoughts is the most sincere and deepest belief that Nis, its economy, and within it- agriculture and rural communities, in which it operates, regardless of all the problems, has excellent development opportunities. Our economy and the market are open to the world, while at the same time the world markets is to be opened for our businesses. This is a great opportunity for those producers and processors who understood the essence of the business world. Access to the development problems need to be significantly changed and more adapted to the modern trends in the world. In this sense, the key question of rural development which has given successful results in Europe and around the world is multi-functionality. Economy and within it especially agriculture, have that multi-functional dimension. It is a primary task and a priority for all of us - to obtain high quality and competitive products that are to be successfully sold in the domestic market but also in other countries. The study behind this publication, conducted by the Group for project development and cooperation in cooperation with the Department’s entire staff, present the essential of the objectives on the short and mid-term. The projects within this document are heterogeneous, involving several types of institutions, farmer’s organizations private firms, and provide some situation background of Nis area. The implementation of the proposed projects should

lead to the competitiveness of the agro sector on local, regional and international markets. We hope this document will help you to understand the complexity of the needs of Nis in agro-food sector. These project fishes are closely connected, especially in the more fragile ecosystems where poor, rural people struggle to give their families a chance to survive. We believe that rural development is possible as long as it empowers those who will be affected through knowledge sharing and education. Development orientated projects is not the simple transmission of information nor the teaching of skills, but the search for a common ground, where people can agree on how to achieve a better future. Finally, I would like to take this opportunity to stress the importance of networking, and urge all of you to take advantage of all networking opportunities, and particularly the importance of networking at the project level. There are many examples where the success of a project depends heavily on the networks that have been created, either for its conception and/or for its execution. Similar and complementary projects should be networked through cooperation projects and also as part of a strategy of capitalisation and dissemination of experience at national and European level. Indeed, I am convinced that, in terms of sustainable rural development, we cannot overstate the role of possible cooperation in achieving this. Sasa Stoiljkovic Head of Department for Agriculture and Rural Development of the City of Nis

FOREWORD

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Niš covers an area of 597 km2 (around 21% of the area of the Nišava District). The City territory is intersected by the highway and railway lines connecting the north and south of Serbia. The highway and railway line branch off from Niš leading to Eastern Serbia and the Bulgarian border. Important regional roads and railway lines lead from Niš to Kopaonik, Novi Pazar and Montenegro, Kosovo and Metohija, Zaječar and Negotinska krajina. Two important axes of the European transport network, Corridor X (Salzburg - Ljubljana - Zagreb - Beograd – Niš - Skopje - Veles – Thessalonica) and Corridor VII (the waterway on the Danube linking Germany to the Black Sea). Nis has an international airport with excellent technical and meteorological conditions for handling passenger and freight air traffic which is located in the north of the city ( a cargo freight centre is being developed 136,000 sq m and is estimated to be completed in 2015. The population of Niš is 253,000 which represents 65% of the population of the Nišava District. In the last 50 years the population has grown 2.3 times. The population of the city centre has increased 3.5 times. But in the last decade the population growth has significantly decelerated, approaching zero. Agricultural land constitutes 62% of the total area of Niš, i.e. 0.15 ha/inhabitant. Out of the total area of agricultural land, 98% is private property. Niš has 80% arable and 20% unarable agricultural land. Arable areas: fields and gardens (58.73%), pasture grounds (20.30%), orchards and vineyards (15.98%), vegetables (0.44%), not cultivated but cultivable area (2%). Unarable areas: dominantly pasture grounds (7.503ha, 40% private property and 60% state property), 7 fish ponds, reeds and swamps. Forest land, which is administrated by “Šumsko gazdinstvo Niš” (part of the national public enterprise Srbijašume), covers 58,262 ha. It is estimated that there is another 53,636 ha of forests in private property (making the total of 111,899 ha). The total timber volume in state forests amounts to 56 m3/ha and in the private sector 73 m3/ha. The total annual growth in state forests is 2.13 m3/ha and in private forests 1.65 m3/ha. Over 30% of state forests consist of thicket and undergrowth and 21.6% of sprout forests, both of which are of poor quality, 9% consists of artificially cultivated forests, and 17% of tall forests. In the urban core of the City of Niš there are 14,480 ha of state-owned and 6,674 ha of private forests (total of 20,854 ha). Wetlands are located in the confluence area of the Nišava and Južna Morava rivers. The rural area of the City of Niš can be grouped into 4 districts: crop-farming and gardening district, stock farming district, agro-tourism district and fruit-growing district. The agro-tourism district has the greatest potential for growth due to its size and very favourable natural conditions for the development of production and services, which creates added value in agricultural production. Natural resources (Sićevo and Jelašnica canyons, mountain tops with ski slopes, paragliding sites, motocross tracks, spa resorts and monasteries) enable the development of rural tourism (agrotourism, ecotourism, ethno tourism, hunting and transit tourism). Niš has a developed industry of processing of agricultural products, raw materials and equipment for agricultural production (over 30 agro-industrial companies). Agricultural support institutions include PC Agrorazvoj Niš, Centre for Viticulture and Fruit Growing Niš, Veterinary Specialist Institute Niš, University of Niš, Regional Cooperative Union Niš, Regional Chamber of Commerce of Niš and the local self-government. Geological characteristics of the area The area of these three regions according to official classification belongs to the mountain region (as Central Serbia in whole). It means that this area is exposed to effects of altitudes, geological foundations, slopes, vegetation, etc…therefore a different types soil has been formed. We can distinguish two main groups of soils: soil based on limestone and soil based on silicate. Alluvial plains along the local river basins and relatively mild

CITY OF NIS IN BRIEF

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hills - somewhere less, somewhere more severe up to high mountains represents a backbone of agricultural activities in area.

Climate characteristics of the areas An important characteristic of this geographical area, as well as Serbia in whole is the level of annual rainfall. That fact is partly a limiting factor and requires a special approach during initiation of intensive production forms. The quantity of rain falls is between 330 and 660 mm. The climate is continental, with average high temperatures between 20C and 250C. Acording to trends we had so far, two climatic accidents in ten years (two dry years with a loss of yield) are possible to happen. Knowing that, special strategies in animal food production need to be organized. The effects of three droughts in the last decade that have had significant impact on overall trends in our, but also in European cattle production as well as on vegetable production. The effects of these droughts had culminated in 2009, 2010 and 2012.The consequences of the last drought that happened in 2012 are still been rehabilitated. The total amount of rainfall has a restrictive effect on the potential use of pastures and meadows which also contributes to the specific characteristics of livestock production in this area. Economic and financial factors There are a significant number of historical, economic and social factors that influence the developments in agriculture in southern Serbia. In recent decades economic and social factors have become dominant over the historical tradition. For the last five decades, some 8.5 million people in Serbia, at first by plan and later on spontaneously, driven by the socio-economic motives, moved from rural to urban areas. Serbia has never, except on paper, had serious programs regarding balanced regional development. In the last two decades, as a side effect of rapid economic decline of the state and lack of vision and severe operational programs, regional disparities in development have been increased.

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Massive liquidation of socialistic companies had not been followed by adequate establishment of new private companies nor with adequate investment in any kind of production - in agriculture as well. In scope of these circumstances, the absence of serious state support led directly to significant reduction of possibilities to find employment in small or rural settlements. All of this has increased the poverty in rural areas, especially in southern and south-eastern regions of the state, and as the final result, we have a significant aggravation of demographic trends. This is especially important in mountainous, mainly livestock farming areas where whole villages had disappeared. Agriculture is in this situation served as a special kind of social buffer - in terms of unemployment, but also in terms of creating a material basis for further movement of rural population to the cities. All these factors are still present in rural areas and still are acting as a dominant motivational complex in making decisions regarding the scope and forms of agricultural production. In the last ten years the economy transformation underlined the deepening of regional asymmetries, which are primarily manifested in increasing concentration of economic activities in the Danube-Sava belt. Almost 2 / 3 of the processing industry are concentrated in two regions (the region of Vojvodina and the City of Belgrade), while only 37% of manufacturing industry is located in other areas. It can be said that these disproportions are present in all economic areas and confirmed by numerous statistical indicators. In fact, structural changes were developing with a faster intensity in the initial years of transition (2001-2004), while in the last five years slowdown have been experienced. Experiences from Slovenia, Bulgaria and Romania show that EU membership have a positive effect on the structure and speed of change and can be expected that the candidate status of Serbia will increase opportunities for more balanced and the structurally qualitative development of the regions. Regional economic concentration

The global financial crisis in caused a high level of unemployed people in urban areas in central Serbia during the last decade. That fact along with significant deterioration of overall economic situation - fall in gross domestic

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product, reduction of wages and rising rate of unemployment, leads us to conclusion that possibility of agricultural production could be considered as possible solution for self-employment.

Unfortunately, this option is available only to a small number of young farmers who inherited estates with a significant degree of technological equipment and have had the opportunity to be educated some form of specialized production by their parents or through additional training.

Due to the lack of affordable credit facilities and, in general, any other form of quality investment funds, this possibility is withheld to large number of young people who may wish to remain in the family estates and therefore they were forced to seek solutions for employment outside the rural areas. This led to the occurrence of approximately 5% of specialized farming households which have shown a capacity for substantial technological improvements in southern Serbia, particularly in Nis District. Thereby, this phenomenon is characteristic only of the rural communities that are located near major urban centres. On the alluvial, lowland areas we have a significant orientation toward vegetable production, while with increasing the altitude and distance from urban centres, we can mark growing number of households engaged in cattle breeding and fruit growing, as well as total dependency on agricultural production and income. These statements are testified by the official statistics. Apart from purely agricultural households, there are a high percentage of mixed households whose income is supplemented from agriculture. However, high production costs are rapidly diminishing proportion of mixed households whose surpluses is available for selling. Therefore, we are facing the accelerated formation of specialized households who are engaged in production of one or two products. The fact is that this process was accelerated only in these municipalities where engagement of professional agricultural services and local funds was organized. In all the other municipalities, lack of investment recourses and high production costs lead to rapid abandonment of rural areas.

According to statistical data, population in Nis area depends on agriculture due to high level of unemployment and low incomes. With the fall of real income in the last three years, this dependence is increasing. In fact, according to the Development Institute of Serbia, in the third quarter of 2010, in the fourth quarter of 2012, the average available monthly budget per household in the Republic of Serbia amounted to 49.907 RSD. Individual consumption expenditure of households in the Republic of Serbia is 42,766 RSD, of which the largest share goes on food and beverages 41.1%.

In 2012, the average available monthly budget per household in the Republic of Serbia amounted to 51504 RSD. In 2012, average monthly budget of the households from urban area amounted to 53666 RSD, while the budget of households from other areas was 48399 RSD. Out of the total available budget the money receipts make 94.3% and the receipts in kind make 5.7%. Regarding households from urban area, money receipts make 99.1% and the receipts in kind make 0.9%, while referring to households from other areas, money receipts make 86.7% and the receipts in kind make 13.3%. The largest share of available budget refers to the salaries and wages of the employed – 41.3%, pensions – 35.8%, natural consumption – 5.7% and other receipts – 4.6%. The individual consumption expenditures of the households in the Republic of Serbia amounted to 49700 RSD, of which the expenditures for food and non-alcoholic beverages make the largest share of 42.9%, followed by expenditures for housing, water, electricity, gas and other fuels - 15.8%, expenditures for transport - 7.9%, for other miscellaneous goods and services– 4.8%, for clothing and footwear - 4.7% and for alcoholic beverages and tobacco - 4.6%.

With the same cost of living and average salaries less for 50 - 80% than the average earnings in the country, unemployment rate above average, chronic lack of quality investment funds, very low capacity of local communities and political structures to attract investment, a strong and continuous pressure on the depopulation of City of Nis area continues.

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• Production: The major agricultural challenge is production (volume related) due to the small parcels of land.

• Marketing: Linked with production is the need to identify, understand and respond to present and future markets. This is particularly the case for vegetable and fruit producers due to the limited shelf life.

The Rural Economy of Nis: Opportunities and Challenges

The Rural economy of Nis is performing below capacity in terms of exploiting the territory’s agricultural advantages. To date the approach to rural development has been of a passive nature based on extensive production of a wide portfolio of agricultural production. In the marketplace, whether local, national or international, this production approach means that Nisava agricultural producers are ‘price takers’ without the leverage to influence price making.

The overall challenge facing the Nis Rural Economy is to move from a production based economy to one that maximising production on a market based approach with Nis integrated into the National, European and Global marketplace.

This requires a pro-active strategy, built on step by step phases, implemented through action plans/projects, with implementation progress effectively monitored and evaluated to inform strategy direction. It is crucial for Nis area to learn lessons from other rural regions, the most important of these lessons is that a strategy should bridge the gap between aspirations and reality and provide a framework for applying available resources to short medium and long term needs. As such Nis strategic objectives are realistic, based on consensus of the stakeholders, and designed to maximise the socio-economic benefits of Nis agricultural resources to employment generation and maintaining the vitality of the region. Crucially farm size is a crucial issue to address in order to achieve the possibility of scale economics in prodution. We should see different relations with land in terms of sharing agricultural resources and more complex contractual relationships between producers and buyers. Nis has to target higher links in the agri-business value chain. Markets/Buyers will seek high quality, competitively priced producers that can guarantee supply. If Nis is to exploit agri-business value chains the district must initiate innovation in production particularly with new thinking in the creation of producer partnerships or producer associations. The Nis Rural Strategy: From Vision to Action 2012-2020 To realise this vision, three action phases are required. The phases are determined by an understanding of the need to carry out short, medium and long terms steps to realise the long term the strategic vision. Crucially, the implementation of any strategy is not reduced to simple achievement to phased objectives, strategic development is a process which will facilitate inter-urban working relations, up-grading local leadership,

KEY ISSUES

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develop a culture of enterprise and innovation and enhance the capacity of local actors to work with purpose in order to build the economy. Phase One: Building the Nisava Agri-Food Platform 2013-2015 Phase Two: Building Competitiveness : A Market Oriented Rural Region 2015-2020 Phase Three: Nis a Global Food Processing and Export Region 2020-2025 The first phase of the strategy building the Nisava Agri-food platform 2013-2015 will create the foundation for Nis to move towards a market approach and greater added value in production. This document concentrates on Phase One Building the Nisava Agri-food Platform. Nisava has first class agricultural resources but the SWOT has identified fundamental challenges that must be addressed if the agricultural resources are to be effectively exploited and the region can make the competitive step change to increased added value production.

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Title 1. DEVELOPMENT AND IMPLEMENTATION OF PUBLIC-PRIVATE PARTNERSHIPS

IN AGRICULTURE AND RURAL DEVELOPMENT INVESTMENTS IN SOUTH SERBIA

Total budget 890.000 EUR

Project duration 33 months

Partners Local self government from South Serbia, Regional Development Agency “South”, public

entities from Austria, Austrian Agriculture Cluster

Project Description

The project will address barriers to public-private sector partnerships for developing and implementing regional agriculture and rural development facilities and services in South Serbia. By conducting on-the- ground trials at selected pilot sites, working at local government and at transnational levels, the project will demonstrate how constraints, manifested under a variety of operating scenarios, can be overcome by responsible parties through application of the PPP procedure. The ultimate goal of the Project is to build confidence among concerned sectors for PPP as a viable means of financing and sustaining regional agriculture and rural development facilities and services, while verifying a practical, transparent methodology for putting partnerships together through promoting innovative services to the citizenry with the exchange of technical and government expertise and best practice between the governments and local/public authorities of Serbia and Austria.

Project background

Process for identifying, promoting and developing capital investments in agriculture and rural development facilities and services, through partnerships between the public and private sectors (i.e., PPP), has been developed and tested in Europe. However, the process is untested in Serbia, or under circumstances that differ from EU countries in terms of political, economic, social and environmental circumstances. The proposed Project will be implemented at selected pilot sites in Nis area. The pilot sites are selected as high potential sites for rural investment, based on previous realized projects.

Problem or challenge to be addressed

The challenges of the Project are to integrate the public-private partnership development process as a practical, value-added component of rural resource governance, to build confidence in the process and to create products and a core of expertise that will ensure its replicability.

Objectives of the project

• To verify a PPP working model and related guidelines, resulting in the formation of public-private partnerships in agriculture and rural development at South Serbia region;

• To build capacity within and among the public and private sectors to effectively develop, finance, implement and sustain new investments in agriculture and rural development facilities and services utilizing the PPP approach, within the South Serbia region and elsewhere

Expected outcomes and

• Outcome 1: a tested set of guidelines, training materials and case studies on public-private sector partnerships, which will be employed by regional and local government planners and decision-makers in implementing regional agriculture

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durability and rural development programs; • Outcome 2: good practices in national policies and instruments that are conducive

to sustainable financing, operation and management of agriculture and rural development facilities and services, including financing strategies, revenue collection, revenue sharing and cost recovery, the development of borrowing capacities of municipalities and partnerships with the private sector;

• Outcome 3: acceptance of the PPP process as an alternative delivery system by development agencies and financial institutions, commercial banks and investors, thereby enabling PPP ventures to access loans, loan guarantees and other forms of financing, internationally, regionally and nationally;

• Outcome 4: transfer and replication of the PPP methodology to other sites in the region, and to other regions

Target groups / Stakeholders involvement

Rural SMEs – farmers, producers groups–Regional, National and local authorities – Civil Society organizations, international companies, banks

Work-packages & activities

1. A Project Steering Committee (PSC) establishment 2. Apply the PPP working model at the selected pilot sites in the region 3. Establish network of operating companies, investment groups, contractors and foundations with interests/capacities in the development of agriculture and rural development facilities and services in the South Serbia region 4. Develop and implement a capacity building program that will strengthen the capabilities of local governments and the private sector to develop PPP pipeline projects, to implement public-private partnership arrangements and to leverage investments by governments and the private sector in agriculture and rural development facilities and services 5.

Key words Rural services PPP- Multi-functionality of the territory – Institutional cooperation-Innovation – Business network

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Title 2. IMPROVE THE PRODUCTIVITY AND COMPETITIVENESS OF SOUTH SERBIA

MILK PRODUCTION Total budget 1.200.000 EUR

Project duration 4 years

Partners Local self government from South Serbia, Regional Development Agency “South”, Cheese

Cluster South, Austrian Agriculture Cluster, Austrian Association of Cattle breeders, Agrarmarket Austria

Project Description

The project will be implemented in three mostly rural and underdeveloped districts of South Serbia: Nisava, Toplica and Pirot, focusing on milk value chain. The project will provide the capacity building programme to improve income generation of milk production through information, advice and training in technical, economical and organisational issues related to high quality modern milk production. Capacity building regarding market possibilities in order for the producers and processors to take advantage of growing international markets for high quality milk products (with focus on cheeses) as well as of processed products will be an integral part of the project. Introduction of Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI) certification of selected cheeses and milk products will be an integral part. Raw milk quality control through providing the milk referent laboratory, risk analysis, certification in line with international requirement in order to ensure that producers follow defined international quality standards and are certified in accordance with these international standards bringing them in better positions for obtaining the best prices at the market will be implemented. One very important constraint for improving the productivity in milk production is the actual lack of financial resources. The programme will establish a grant scheme in line with the expected upcoming EC IPARD (Instrument for Pre-accession Assistance for Rural Development) programme.

Project background

The agricultural sector in Serbia is facing great challenges as a consequence of the transition from socialism and wars to the current EU accession period. In order to respond to these challenges, the Serbian milk sector in particularly needs to be strengthened in the sense of production, processing industry and market competitiveness. The modernization of the agricultural technologies and introduction of the best agriculture practices (BAP) are needed a long with introduction of new breeder’s production. Also legislation and enforcement in relation to phytosanitary issues and standards is demanded in order to ensure adequate framework conditions for the sector. Milk products – fresh and processed as well as the trading of products (on domestic and on foreign markets) most enhanced in order to defend the market positions of the sector.


The main challenges facing the sector are weak capacity of farmers to adapt to best available techniques for milk production, poor capacity of rural administration in providing the advisory services to milk farmers, no or weak link between value chain stakeholders. Obsolete milking technology, under-used processor capacity at current levels of production, insufficient cold-chain capacity and poorly organized milk collection in some areas, lack of quality management systems, and no referent independent laboratory for milk testing are some of the major problems. The project will address as well nnonexistent of the programs to improve cattle breeding and markets for selling cattle with improved genetics.

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• To provide capacity and competence build up in all links of the selected value chain from producer to final customers and exporters for the milk and milk products. This will be done through transfer of organisational and technical knowledge across the links in the value chains and geographically across the selected 3 district in South of Serbia and produce to market possibilities

• To provide technical assistance to relevant public institutions and authorities regarding improvements of the framework conditions for the sector (certification, control, laboratory supply etc.)

• To provide access to capital for investments through a co-financed grant scheme supporting investments in all links of the value chains from new breeders, via modernizations of agricultural machinery and stalls to processing and marketing

• To contribute to EU accession and the buildup of competences locally through capacity development and through the implementation of the grant scheme in cooperation with the implementation of the National Rural Development Programme in compliance with EU and IPARD standards

• Expected outcomes and durability

• Outcome 1: Capacity building of the rural administration and training and improvement of cooperation between producers (producer groups) strengthen

• Outcome 2: Development and enhancement of cooperation throughout the entire value chain from producers to consumers and exporters, including market surveys and cooperation in marketing developed

• Outcome 3: Supported the introduction of modern production and methods • Outcome 4: Strengthened of the quality control, risk analysis, safety monitoring,

and certification in row milk production in South Serbia and enforcement of testing laboratories for quality control and food safety

• Outcome 5: Investment in primary production and processing through Grant scheme increased


Regional dairies – milk farmers, producers groups–Regional, National and local authorities – Veterinary Specialized Institute Nis-traders


-The programme will assist milk farmers in enhance the already existing extension service with special focus on cheese processing; -The programme will assist in the setting up and running of producer groups and organisations (training and equipment); -Support training of trainers and training of producers, processors and others; - When appropriate study tours will be arranged to other countries with grant schemes, experiences, in the milk sector, in marketing milk from Serbia and in actual producer organizations; -Assistance to establish market associations; -Support market surveys for milk on home and foreign markets; -Support market events in Serbia and other countries; -Dissemination of primary production knowledge at district and municipality level; -Training of experts in quality control, risk analysis, certification in line with international requirement; -Enforcement of laboratories (quality control, food safety and monitoring programme) for milk and milk products; -Establishment of a grant scheme for investment in milk sector

Key words Productivity, competitiveness, milk producers, dairies, local self government, laboratory, market, cooperation

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3. INTEGRATED CONVERSATION OF VITICULTURE, FRUITS GROWING AND CROP DEVELOPMENT POLICY AND PRACTICES IN SOUTH SERBIA

Total budget 36 months

Project duration 2.200.000 EUR

Partners Local self governments from South Serbia, Veterinary Specialized Institute Nis, Centre for Viticulture and Vinery Nis, University of Nis, Farmer’ s associations

Project Description

The project will adopt the production-marketing-accessibility concept in which value is added to traditional varieties and breeds by improving productivity (Outcome 4), developing markets (Outcome 5), and facilitating market accessibility (Outcome 6). Progress on all three pillars will be facilitated by improved developed seeds material (Outcome 2) delivery of scientific information (Outcome 1) and technical support (Outcome 3). The sustainability of the resulting benefits will be assured through institutional and policy improvements (Outcome 7) and dissemination and awareness raising (Outcome 8). It will contribute to the attainment of food security and self-sufficiency in South Serbia through the maintenance of adequate levels of indigenous agrobiodiversity. Specifically, the project will support and assist mainstreaming of agrobiodiversity conservation into livestock, sheep and goat breeding, viticulture, fruits growing and crop development in South Serbia. In order to achieve this objective, the project will work in four target sites and at the institutional/policy level to overcome the barriers that currently prevent effective mainstreaming of agrobiodiversity conservation in agricultural and livestock development. It will work on mainstreaming agrobiodiversity conservation in agricultural and livestock development, institutionalizing technical support mechanisms, and developing new market opportunities, thus adding value to the indigenous genetic resources

Project background

The diversity of agricultural and livestock genetic resources in the target sites will continue to decline as agricultural and livestock development fails to take account of the contribution of agrobiodiversity conservation to food security and self-sufficiency. Local farmers would benefit from increasing incomes, but would lose their cultural heritage and opportunities for future investments. As the effects of global climate change increase, the loss of genetic diversity could mean that short-term financial benefits compromise future economic and food security and self-sufficiency.


Inter-related barriers concerning low monetary value assigned by farmers to traditional varieties and breeds and the problems associated with accessing markets for products of traditional varieties and breeds can be overcome both by seeking ways to increase yields of traditional varieties and by developing new “niche” markets where products of traditional varieties and breeds can command significant prices.


to mainstream agrobiodiversity conservation into livestock, sheep and goat breeding, viticulture, fruits growing and crop development policy and practices in South Serbia

Expected

Outcome 1: The documentation and characterization of indigenous genetic resources (including wild relatives) supports conservation and development policy, prioritization of

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outcomes and durability

conservation efforts and the identification of opportunities for income generation. Outcome 2: Seed and planting material of local varieties available to farmers as the seed bank are developed and established Outcome 3: Agricultural departments and local/regional institutions are able to support farmers in conserving agrobiodiversity through provision of relevant and timely technical information well Outcome 4: The value of traditional varieties and breeds to farmers is increased through yield enhancement Outcome 5: Traditional varieties and breeds have access to new and larger markets. Outcome 6: Farmers have the capacity to access existing and emerging markets. Outcome 7: At a systemic level, the capacity of the City of Nis is adequate to mainstream agrobiodiversity conservation into the attainment of food security and self-sufficiency. Outcome 8: Farmers, agricultural and livestock sector professionals and the general public are aware of the contribution of agrobiodiversity conservation to food security and self-sufficiency.


Farmers-agricultural and livestock sector professionals-City of Nis administration


- Existing gaps in capacity, for example, in animal genetics, taxonomy and characterization techniques addressing through training of staff, collection and characterization of indigenous genetic resources. -Creation of spatial databases of indigenous genetic resources, and especially wild relatives, -Identification and implementation of emergency measures required for conservation of most endangered varieties and breeds -Establishing of Ex situ collections of livestock genetic resources. - Identification and implementation of measures to ensure conservation of endangered priority wild relatives -City of Nis and partner’s organization staff trained in the importance of, and approaches to agrobiodiversity conservation -Incorporation of Agrobiodiversity conservation incorporated into research programmes of Veterinary Specialized Institute Nis, Centre for Viticulture and Vinery Nis, University of Nis -Exchanging of problems encountered at specific sites and innovative solutions developed by the farmers -Yield of traditional crop varieties and livestock breeds improved through breeding and cultural improvements -Training for farmers in participatory breeding. -Existing marketing capacity in the mobilization to develop a marketing strategy for products of traditional varieties and breeds. -Assessing market potential for new and niche markets – especially in relation to the tourism sector. -Securing the marketing and purchase agreements with private sector partners and regional marketing agencies. -Development and implementation of a certification system for products of traditional varieties and livestock breeds -Farmers’ cooperatives formed to facilitate access to markets -Developing the capacity of agriculture administrations to support agro-enterprise development

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-Training for farmers in special requirements of new and niche markets, on the basis of cost-benefit analyses. -Assisting in developing processing and packaging facilities -Lessons and experiences from existing efforts to promote agrobiodiversity conservation are shared with farmers in the project’s target sites. -Support of progressive farmers, in terms of agrobiodiversity conservation ,in efforts to disseminate agrobiodiversity conservation methods. - Annual conferences for exchange lessons learned in agrobiodiversity conservation. -Curricula in schools and especially the Institute for Nature Preservation of Serbia are strengthened in relation to agrobiodiversity conservation. -Support of public awareness campaigns especially by the mass media (print and broadcast) and through extension services. -Policy analysis of sectoral policies identifies gaps and inconsistencies - Agriculture and livestock sector policies integrate agrobiodiversity conservation issues -Fiscal policies (subsidies) support agrobiodiversity conservation

Key words indigenous genetic resources, mainstream agrobiodiversity conservation

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Title 4. DIALOG FOR RURAL DEVELOPMENT IMPROVEMENT

Total budget

345.000 EUR


Partners Farmer’s organizations,

Project Description

City of Nis, in cooperation with partner organizations will work on transferring the experience in rural development planning, point to the reform of local institutions in order to raise the level of service provision to citizens and commercial entities through the reduction of administrative procedures, improving procedures and increasing efficiency of work, make a link between the main priorities of the EU CAP and the City of Nis in the area of agriculture and rural development. Transfer the practical experience of the EU plans in the field of agriculture and rural development, primarily in the areas of cohesion and primary agriculture, and define the framework work for the possibility of applying the new market-oriented strategy for the EU Common Agricultural (CAP) as a precondition for the integration process towards the EU will be essential. Through seminars, study tours to Austria, "train the trainers" accredited training and transfer of gained knowledge to other relevant stakeholders (farmers primarily), financially supporting farmers in efforts to disseminate methods of agriculture production according to EU legislation, building up of administrative capacity for future implementation of pre-accession rural development measures, comparative analysis of legislation in the City of Nis and Austria, and campaigns (educational and information), favourable climate for the consistent implementation of EU standards in the field of agriculture and rural development will be created, and the cooperation between Serbian farmer’s organizations form Nis and Austria will be strengthen

Project background

EU accession process of Serbia presents a challenge for the agro industry in Serbia, but also opens the potential for intensive development and significantly improving the sector. On the other hand, the accession process involves significant efforts in reform of the sector, which involve certain costs -from the establishment of administrative structures necessary for the future implementation of the Common Agricultural Policy to the costs associated with the introduction of the required standards.. To convert the potential of agriculture in Serbia in reality, it is necessary to remove the structural problems in this area and to start intensive work in preparation of Serbia’s stakeholders on EU accession and on the European agricultural policy approximation in order to restructure it successfully and to maximize positive effects.


It is evident that there is a lack of knowledge on best agriculture practice from EU on key staff of agriculture administration, gap between specialized knowledge at institutes and the application of this knowledge on the field, gaps in local capacity for application of economic instruments for rural development, gaps in local capacity for monitoring of implementation of rural development programme/schemes, lack of cross -institutional coordination and inter-sectoral dialogue, capacity of farmers, land users and NGOs lack of practical implication of EU policies

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• Strengthening of administrative capacity and cooperation between civil society organizations and agricultural administrations, in particular in the area of trainings, formulation, analysis, implementation and control of agricultural activities.

• Building up of administrative capacity for future implementation of pre-accession rural development measures (IPARD)

Expected outcomes and durability

Outcome 1: Cooperative network of producer’s organizations and public administration in rural development established between Serbia and Austria. Outcome 2: Local governments and farmer’s organizations have the capacity and awareness to regulate, plan and monitor progress of rural development changes on local level. Outcome 3: Farmers, agricultural and livestock sector professionals and the general public are aware of the benefits of adapt to demanding standards based on Community legislation. Outcome 4: The methodologies, skills, knowledge, and capacity for applying for pre-accession rural development measures (IPARD) increased


Famer’s organization- local self governments-agriculture extension services-OCDs-cooperatives


-Exchanging of knowledge and best practices on planning and implementation of EU policies between City of Nis and partner organization from Austria -Establishing of the functional network between producer’s organizations within the region and with their counterparts in the -Development of accredited training programmes on the integration of Common Agricultural Policy objectives -Training program on integration of CAP objectives into regular work activities related to rural development planning, implementation and evaluation. -Developing knowledge materials from extensive information on good practices from Germany and dissemination using different tools of communication. -Sharing lessons and experiences from existing efforts on promotions of rural development with farmers in the project’s target sites. -Progressive farmers support in efforts to disseminate methods of agriculture production according to EU legislation through economic initiatives -Annual rural development conferences that serve to exchange lessons learned in rural development project. -Public awareness campaigns, especially by the mass media (print and broadcast) and through extension services. -Establishment and implementation of accredited training programmes on the future implementation of pre-accession rural development measures (IPARD)

Key words pre-accession rural development measures (IPARD), dialogue, exchange, network

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Title

5. MARKETING AND TRADE SUPPORT PROJECT

Total budget 1.480.000 EUR


Partners Local self governments, Chamber of Commerce, Cooperatives, farmer’s organizations

Project Description

The production of an Agri-Food Sector will be reviewed followed by identification of niche marketing opportunities and pilot based initiatives by farmer’s associations. Development and introduction of a Market Information System and disseminates this information through the press TV, radio, web-site and in hard copy is the second activity. As Department for agriculture is in phase of establishment of sector that will work directly in linkage of producers and processors, capacity building programme will be developed and implemented combined with the support in equipment and supplies. A web-site and Food Manual (Trade Directory) set up to disseminate price information as well as to provide advice and information on a wide range of agri-food marketing issues will be developed. Five marketing feasibility studies will be undertaken in the fruit, vegetable, wine, milk and meat sectors. Based on the findings of the feasibility studies the project will support a number of pilot initiatives. A series of Food Forum meetings will be organised for the agri-food producers and processors at a local level to discuss common issues of quality, safety, packaging, labelling and marketing. The identified niche market opportunities which will be developed and implemented on a pilot basis will be supported, as well as participation on international agri-fairs will be supported. The Hart of South Serbia Quality Food & Drink Products brand will be developed and promoted throughout the project. The promotion of the brand will be provided in a media marketing campaign which includes a high profile launch event, the production of 2 TV commercials, an informational film and a publication entitled Rural South Through the Lens… Delivering of training module on Market Research, Marketing Mix & Product Development, Marketing Strategy & Planning, and Supply Chain Communication to farmers, traders, processors, and local government will be provided. Furthermore, Training of Trainers will be developed with the aim of creating a sustainable system for delivering agri food marketing training. The ToT will be comprised on three modules as follows: Training Techniques; Advanced Marketing Techniques; Market Information & Planning. The project will provide support to the University of Nis to develop its curriculum and capacity in agri-food marketing. The Project will organize and deliver two study Tours for 40 producers, processors, traders, government and other agri-food sector organisation representatives to best cases with the objectives of gaining a better understanding of the linkages between producers, processors and traders; to understand the role of local self government and other organisations in creating an enabling environment for the agri-food sector; to adapt and apply the lessons learned and to identify marketing opportunities for South Serbia agri-food products. The project will address the crosscutting issues of gender as well as the environment on an ongoing basis. Gender Mainstreaming Guidelines will be produced and gender awareness training will be provided.

There is still much to do in building the trust of the South Serbia consumer in locally/regional

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Project background

agri-food products. The agri-food sector still faces fierce competition from imports. Free Trade Agreements are in place with most of the neighbouring countries and Serbia has also signed the CEFTA whilst this opens up the market for Serbia to export produce it also gives importers improved access and currently for the reasons already mentioned importers are reaping the greater benefit.


South Serbia agri-food producers, processors and traders are emerging, supported by project marketing feasibility studies, pilot approaches and initiative groups, but they continue to battle with issues of small scale, fragmented production and related high costs, poor communication along the supply chain, food safety and quality, packaging, labeling, branding and marketing. The legislative environment is progressing albeit at a slow pace; food labeling legislation has been passed; food safety, including HACCP certification is being progressed


The overall objective of the project is “to improve the marketing of domestically produced agricultural and food products inside and outside of Serbia and so contribute to the overall economic development of rural areas.” The specific objectives of the Project are as follows: To strengthen market information services which will be achieved by collecting analyzing and dissemination market data

• To improve market access for local producers, with a specific attention to the different needs and opportunities of women and men in rural areas of City of Nis by encouraging investments into and the development of, wholesale/farmer/retail markets, post-harvest and added value activities, farmer marketing and enterprise groups and improved linkages between farmers, traders and processors

• To enable the further uptake of quality assurance programmes and in particular to ensure that buyers and consumers are properly informed regarding (the quality/safety of) locally produced food products

• To encourage agri-trade across the Balkans and with the European Union and develop schemes for improved promotion of Nis regional brands

• To deliver training, advisory and study programmes on agri-food marketing. • To contribute to the development and implementation of effective agri-marketing

policies and help to strengthen the City of Nis Department for Agriculture and Rural Development capacity in this area.

• Methodological approach

To assist with the promotion of South Serbia agri-food products, access to reliable data providing detailed information about buying patterns, market characteristics and how distribution channels work is essential for producers, processors, wholesalers, retailers and policymakers. Consequently, the Project shall complete an initial South Serbia Sector Review during the inception phase. The reviews will be based on desk research in combination with structured interviews. This is adequate to give an overview of the sector but the data could not be regarded as robust and reliable. The updated Sector Review will be uploaded onto the project web-site and published in hard copy for dissemination to the agri-food sector.


• A better informed more market aware and competitive agribusiness sector. • Improved market opportunities for producers, traders and agri-food processors. • Greater innovation and product development across the sector. • Improved food product quality and choice for consumers.

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• Increased agri-trade across the region and in line with best practice and international standards.

• A reduction in the balance of trade deficit for agricultural products compared with imports.

• Improved participation of rural women in the development of the agribusiness sectors at all levels and particularly at the levels of decision-making, agro-processing and marketing, management of technology and remunerated employment


Women’s Group-University staff-The Producers-Wholesalers- Traders-local administration staff


WP1-Market Information and Supply Structures/Systems

• A sustainable market information system operating for livestock, fruit and vegetables in Nis region

• Regional market information/dissemination centres strengthened and sustainable WP2-Capacity Building at Producer/Processor level

• A minimum of one farmer marketing initiative groups operating • A minimum of 10 joint meetings held between traders, processors and farmers on

specific commodity or trade topics. • A minimum of 10 workshops held for at least 100 participants, covering specific

marketing aspects. • 4 exchanges of marketing staff completed with training institutes in other countries • 50 farmers, traders and local and regional government personnel attending

regional food exhibitions and trade shows outside of Serbia in the EU and outside EU.

WP3-Other Marketing initiatives • A minimum of 1 feasibility studies completed on market and added value activities • A minimum of 4 detailed reports/summary marketing booklets completed and

disseminated on agrimarketing and markets. • A pilot industry-led food quality assurance and accreditation programme

operational • Food exhibition/trade shows supported • 1 regional food brands further developed and promoted • A Nis area food manual developed

Key words Market, supply, marketing, trading,

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Title

6. Rising the grape production in South Serbia

Total budget 1.200.000


Partners City of Leskovac, Municipality of Svrljig, Municipality of Vlasotince, Center for Viticulture and

Vinery Nis, viticulture and winery association

Project Description

The general aim should be to contribute to increased economic growth, preservation of existing jobs and possible new job creation in sector of winery and viticulture. This will be achieved by incising the knowledge and raising the capacity of individual producers to produce quality grapes. Also, this aim should be achieved through improvement of capacity and competitiveness of manufacturers in order to get a better and easier access to the market, as well as more developed mechanism for individual grape production and improving the status of producers. The main project delivery will be providing the equipment to be use by all members of newly established Union, as well as supply of equipment for Union’s vinery.

Project background

Taking into account the plight of the local vineyards and wine along with great wine competition from neighboring countries and the European Union, this sector should be improved and reformed in order to harmonize with EU standards and the trend of increased demand for high quality wines. Therefore, it is necessary to adapt the sector of viticulture and enology to the current situation and trends and to harmonize it with EU standards by changing legislation, intensive raising of adequate assortment of vineyards (minimum 2,000 hectares per year) and create enough of local raw materials to produce high quality wines, improving the quality of domestic wines, coordination of geographic origin with a real situation and to establish new regional trademark, reduction of the large negative trade balance in the wine trade, particularly with Macedonia and Montenegro, the intensive promotion of domestic wine and domestic assortment.


Poor market conditions, bankrupt of large wineries that were buying grapes from small producers, poor assortment intended for the production of table wine and a long low-quality wine production, lack of clear legal framework, lack of clear categorization of quality wines and lack of clear labeling of such wines, lack of modern capacity for production, poor image of Serbian wines and the lack of media promotion, the enormous import of cheap wine from Macedonia, loss of confidence by consumers in terms of quality and control of local wines are the biggest problems within the sector.

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• Increased competitiveness of the wineyard sector • Increasing employment and income from the production of grapes


• Increased knowledge of manufacturers regarding the production of grapes • Raised production capacities of manufacturers regarding production of quality sorts

of grapes and increased economic growth • Strengthened market position and competitiveness of manufacturers of wine • Increased level of public interest for the products of the Union


Producers of grapes from Nisava and Jablanica districts- wineries from Nisava and Jablanica districts-unemployed people


-Education of grape producers -Forming three associations of producers at the level of the three municipalities -Forming the Union at the regional level -Supply of specialized machinery for the processing and protection of vineyards -Supply of specialized equipment for common vinery -Study tours to get to know examples of good practice -Connecting the producers association and union with processors -Regional branding and marketing

Key words Grape producers, union, competitiveness of the wineyard sector

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Title 7. Agricultural Machinery Ring for a Competitive Agriculture

Total budget 950.000EUR

Project duration 36 months Partners Local self governments, association of farmers

Project Description

This project will work on developing the best available model for cooperative society of farmers offering community machinery and equipment for rental, personnel leasing as well as common ordering of operating supplies through the well known model namely the “machinery ring” and delivering the model in South Serbia. It will be implemented closely in dialogue with farmer’s representatives and through transfer of knowledge from best case studies, providing them know-how and start-up equipment and machinery for sustainable implementation of concept.

Project background

The idea of joining agricultural producers in a so - called machinery ring offers great opportunities to allow the best utilisation of existing machinery. Therefore, the project Agricultural Machinery Ring for a Competitive Agriculture will be implemented which included the following activities: printing of manuals, flyers and posters for the workshops, five promotional and training workshops and five inaugural assemblies for the establishment of local associations according to the agricultural machinery ring model.


The lack of knowledge of the farmers about rational utilisation of agricultural machinery leads to a mismanagement of farmers, and this has subsequently caused non - competitive service prices and agricultural products


• To increase farmers’ capacity to reduce fixed and variable costs associated with agricultural production;

• to extent collaboration in agriculture, bringing the growth and diversification reinforcement and perceptions of the ring organisation as a service provider and reduced members’ sense of being part of a group

• to improve environmental sustainability of agriculture (e.g. renewable energies, green waste and composting)


• provided a mechanism by which farmers’ access to new technologies has become enhanced, either as a ‘supplier’ or ‘demander’ member

• generating greater efficiencies between farmers (and other members) at a regional level

• creation of an extensive membership base and (in some instances) formalising existing relationships between farmers through formed farmer-owned cooperative enterprises of machinery ring associations


Farmers, landowners


WP1-Formation of machinery ring WP2-Capacity building among farmers regarding the benefits of the machinery ring association WP3-providing input for sustainability of the machinery ring services

Key words Machinery ring, strengthening of the ownership, common equipment

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CONTACT US

If you are interested in supporting and working with City of Nis on some of the project proposal please contact:

1. Jovan Stojkovic, Mayor Assistant for Agriculture, Phone:+381 64 833 0379, +381 50 44 15 E-mail: [email protected]

2. Sasa Stoiljkovic, Head of Department for Agricultural and Rural Development , Phone: +381 64 833 0385, +381 18 290 243, E-mail: [email protected]

Documents

Project Fiches-Austrain Attache