Contents

Acknowledgement

Summary

1 Introduction

1.1 Background

1.2 Objective and questions

1.3 Approach and structure of the study

2 Serbia's economy and regional income distribution

2.1 Introduction

2.2 Serbia at a glance

2.2.1 Country and population

2.2.2 Key economic indicators

2.3 Key features of the Serbian economy

2.3.1 Economic growth

2.3.2 Inflation

2.3.3 Employment

2.3.4 Exchange rate

2.3.5 Trade

2.3.6 Current account and external debt

2.4 Measuring the size of the economy

2.5 Income distribution

2.5.1 Developments in the household income distribution

2.5.2 Regional income distribution

2.6 Summary

3 The institutional framework of Serbia and Serbian agriculture

3.1 Introduction

3.2 Historical overview of institutional development

3.3 Natural resource institutions

3.3.1 Land institutions and implementing organizations

3.3.2 Water resources institutions and implementing organizations

3.3.3 Forest institutions and implementing organizations

3.3.4 Environmental protection institutions and implementing organizations

3.4 Knowledge and innovation system

3.4.1 Education system

3.4.2 Science and innovation system

3.4.3 Transfer of knowledge and innovation in the agri-food sector

3.5 Financial institutions

3.5.1 Credit market

3.5.2 Development funds

3.5.3 Leasing companies

3.6 Cooperatives and farmers' organizations

3.6.1 Cooperatives

3.6.2 Association for agriculture, food and tobacco industry and water management of the Chamber of Commerce

3.6.3 Business associations and farmers' associations

3.7 Agricultural policy implementation institutions

3.7.1 The MAFWM

3.7.2 Adapting agricultural institutions to the EU model

3.8 Conclusions

4 Agricultural production, prices and income

4.1 Introduction

4.2 Agriculture in the economy

4.3 Agricultural land

4.4 Farm structure

4.5 Production: size and regional diversity

4.5.1 Crop production

4.5.2 Livestock production

4.6 Prices

4.7 Labour and land productivity

4.8 Concluding remarks

5 Serbia's rural population and agricultural workforce

5.1 Introduction

5.2 Rural population and agricultural labour force

5.3 Rural economy and rural labour market

5.4 Employment in agriculture

5.5 Rural poverty

5.6 Rural infrastructure

6 The agri-food supply chain

6.1 Introduction

6.2 Consumption patterns

6.3 Retailing and wholesale of food

6.3.1 Benchmark countries

6.3.2 Evidence from Serbia

6.4 Food processing

6.5 Characteristics of Serbia's major food industry branches

6.6 Primary agriculture

6.7 Suppliers in the upstream industries

6.8 Relationships between farmers and markets

6.9 Conclusions

7 Overview of agricultural, rural and structural policies

7.1 Introduction

7.2 Main elements of recent reforms

7.3 General agricultural policy framework

7.4 Budgetary outlays to agriculture

7.4.1 Market and direct producer support measures

7.4.2 Market support measures

7.5 Concluding remarks

8 Serbia's foreign trade position

8.1 Introduction

8.1.1 An overview of Serbia's major trade relations

8.2 Trade policy

8.3 Serbia's agricultural trade arrangements with the EU

8.4 Serbia's agricultural trade profile

8.5 Conclusions

9 Environment and agriculture

9.1 Introduction

9.2 Environmental impacts of agriculture in Serbia

9.2.1 Impacts on water resources

9.2.2 Use of pesticides and fertilizers

9.2.3 Impacts on the soil

9.2.4 Impacts on climate change

9.2.5 Concluding remarks on agriculture's environmental impacts

9.3 Overview of policies relating to the environmental impacts of agriculture

9.3.1 Environmental policy

9.3.2 Agricultural policy

9.3.3 Rural development policy

9.4 Environmental institutions and their functioning

9.4.1 Institutional framework

9.4.2 Policy implementation, monitoring and enforcement

9.4.3 Financing environmental projects

9.5 Organic agriculture and relevant institutions

9.5.1 Market for organic agriculture

9.5.2 Institutional set-up and regulatory framework for organic farming

9.5.3 Prospects for organic agriculture

9.6 Biodiversity

9.6.1 Biological diversity

9.6.2 Influence of agriculture on biodiversity

9.6.3 Institutional and policy framework for biodiversity conservation

9.7 Summary and conclusions

10 Animal and plant health in Serbia

10.1 Animal health

10.1.1 The animal sector

10.1.2 List A diseases

10.1.3 List B diseases

10.2 Plant health

10.2.1 Overview of agricultural and horticultural crops

10.2.2 Plant diseases in arable and horticultural crops

10.2.3 Current situation, prospects and conclusions

10.3 Conclusions

11 Expected consequences for Serbia and the EU of Serbia accessing the EU

11.1 Introduction

11.2 Assumptions

11.2.1 Economic growth

11.2.2 Exchange rate developments

11.2.3 EU budget

11.2.4 EU agricultural policies

11.2.5 Structural and cohesion funds

11.3 Policy implications

11.3.1 Implications for agricultural, food, rural and structural policies

11.3.2 Implications for trade policy, animal and plant health, and policies concerning environmental impacts of agriculture

11.4 Implications for the agri-food chain development

11.4.1 Bottlenecks to improve competitiveness

11.4.2 Impact on the food industry

11.4.3 Impact on the farm sector

11.5 Implications for institutions and their functioning

11.6 Financial and economic consequences

11.6.1 Introduction

11.6.2 Assumptions for and estimations of the CAP expenditure

11.6.3 Assistance to Serbia from the EU structural funds

11.6.4 Concluding remarks: total effects

11.7 Consequences for the EU of the enlargement to Serbia

11.8 Concluding remarks and some recommendations to take up challenges of future EU integration

Subject Index

A

B

C

D

E

F

G

H

I

L

M

N

O

P

R

S

T

U

W

Y

Acronyms