Top investment sectors – Food

-Second largest FDI sector in Serbia (after Financial),

-More than 2.6 billion of euros of FDI,

-Excellent agricultural land – also opportunity for investments in primary production,

-Over one third of world’s raspberries are grown in Serbia,

-Excellent position to cover SEE market,

-Excellent conditions to serve Russian market.

Largest Investors in Food Industry:

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Food industry in Serbia

Trade unlimited

kukuruzBy the means of the set of free trade agreements Serbia serves as a platform for duty-free export of foodstuff to a market of roughly 1 billion people. In addition to being the only country outside the Commonwealth of Independent States (CIS) that has a free trade agreement with the Russian Federation, Serbia has such an agreement with the European Union and a number of other countries. That particular fact makes it a bridge between the east and the west and a hub for Euro/Asian market. Free trade agreements with EU, EFTA, CEFTA and Turkey allow for mutual accumulation of origin, as do the agreements with Russia, Belorussia and Kazakhstan, respectively. Trade with the US is pursued under the Generalised System of Preferences (GSP) which provides for a duty free export of most of the food products. Export of agricultural products is on a constant rise and so is the trade balance that stood close to a billion euros in 2011 – 9.1% higher compared to the same period in 2010. Serbia is the biggest exporter of foodstuff among CEFTA countries and the only net exporter.

Serbia was the biggest exporter of frozen raspberries for six years in a row:

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Fruit

jabukeFruit production is one of the key sub-sectors of Serbia’s economic development and therefore given a strategic treatment by the Government of Serbia.Despite of the effects of the global economic crises, export of Serbian fruit rose by 45% in 2011 and is showing tendency of continuous growth. In 2010 Serbia accounted for more than 55% of the entire EU production and around 22% of global raspberry production. With around 80,000 tons produced and export revenues amounting to $200 million, Serbia was the largest exporter of raspberries in 2010 globally. Its traditional competitor, Chile, was ranked second with around 35.000 tons. The two countries are regularly world’s strongest raspberry exporters and among the largest producers globally, together with Russia, US, Poland, and Germany. Around 80-85% of raspberry production is intended for export, mainly frozen in bulk. This constitutes a huge potential for investors who are thinking to start a production of final products with all kinds of different berries such as: spreads, jams, toppings, ingredients for ice-cream industry, fruit cubes for yoghurt production, etc.

Due to ideal climate conditions in southern Serbia, Serbian Oblacinska sour cherry reaches a global maximum of 19-21 briks. Depending on the season, annual export of Oblacinska is more than 90,000 tons and it is being used by all major European food-processing factories. Plums occupy more than 50% of orchards in Serbia, namely 42 million trees.They are mostly used for production of domestic plum brandy internationally known as “sljivovica”, while a minor part is used for drying and processing into plum jam and plum confiture, the most common breakfast sweet spread.

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Vegetables

vegrtablesPaprika, cabbage, tomato and potato from Serbia are conquering foreign markets.

Ideal climate for vegetable production makes Serbia the main exporter and supplier of the South Eastern Europe.The most popular vegetables produced in Serbia are: paprika (pepper), cabbage, tomato and potato. Pepper production is oriented towards pasteurized pepper in different forms: shredded, cooked and roasted. Due to dry matter in it, majority of red pepper is used for production of aromatic spices, but also for preparing a traditional Serbian winter dish – “Ajvar”spread. Ajvar is prepared using a special recipe, with red peppers and eggplants, and could nowadays easily be found on every continent. Serbia has two very famous markets and pepper production centres: Leskovac area for production of dry and fresh pepper and northern Serbia for production of mild, hot, and crushed pepper for industrial spices. EU food processing industry is well acquainted with the quality of Serbian red pepper, as it is heavily using it for processing. Region around the city of Futog is famous for producing cabbage good both to be used fresh and for further processing. For example, Futoski cabbage is perfect for making Sauerkraut.

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