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Voluntary Report - public distribution

**Date:** 10/23/2003

**GAIN Report Number:** SR3011

SR3011

**Serbia**

**Fresh Deciduous Fruit**

**Plum Production Update for Serbia and Montenegro**

**2003**

**Approved by:**

![](media/image1.wmf)Holly Higgins

U.S. Embassy

**Prepared by:**

Tatjana Buric

**Report Highlights:**

**In 2003 plum production in Serbia reached the highest level since 1994
at 400,000 MT. Roughly 15 percent of the 2003 crop will be exported.
Almost 80 percent of the Serbian crop is further processed, and fresh
plum sales are weak due to quality problems.**

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Sofia \[BU1\]

\[SR\]

SERBIA AND MONTENEGRO

**Plum Production Update**

**2003**

With 400,000 tons, Serbia hits a 7 year high production of plums this
year. Local companies are processing plums into marmalades, jams and
dried product. Companies producing frozen fruits have recently turned to
raspberries and cherries since profits in exporting those products were
higher then exporting plums. Thus, the plum processing industry is
suffering financially and will have difficulties in marketing total plum
output. The current price of plums (wholesale) is 8 dinars/kilo (\$
0.14).

Around 44,000 plum trees are planted on some 150,000 HA in Serbia. Plums
were one of the main export products in the ex-Yugoslavia. Most plums
were grown in the Republic of Serbia in south central orchards. Over the
last ten years Serbia had serious problems with disease (ervinia) that
damaged and destroyed a large number of plum trees.

In 2002, Serbia harvested only 197,000 tons of plums. While in 2003,
even with spring frost and drought, no damage was recorded. The 2003
plum crop is of excellent quality for both processing and consumption.

Due to the lack of finances and production technologies, some 80 percent
of total fresh plum production is used for production of plum brandy.
This is a typical Serbian drink produced in most villages. The Serbian
Government has a plan to register "Serbian plum brandy" as a special
geographical indicator or international brand name.

In 2002 the Serbian Government introduced subsidies for planting new
plum trees. The government is paying 40,000 dinars (\$702) per hectare
for four main sorts of plums: pozegaca, cacanska, valjevka and stenley.
Subsidies are to be paid for new plum trees in the region of Nis, Pirot,
Jablancki and Pcijski. Plum trees must be planted on an area larger then
0.5 hectares, with at least 400 trees per hectare. The government is
paying in advance some 20,000 dinars per hectare if a farmer can prove
that at least 90 percent of the new trees are in good condition, and not
suffering from any disease.

With the new policy of paying subsidies the number of plum trees
increased in 2003 to 44,000 and is now close to 1998 levels. Serbian
companies are expecting to export around 15,000 tons of plums (fresh and
processed) worth 6,555 million USD out of the 2003 crop of 400,000 tons.
This is only 4 percent of the total production. In total, fresh plums
account for up to 15 percent of overall plum exports, while processed
plums (frozen, jams, dried) account for almost 85 percent of total
exports. Problems in exporting include lack of new technologies for
processing and drying plums, lack of solid and small packages and lack
of recognized brand names.

In August 2003 Serbia exported 1,000 tones of fresh plums to Germany at
a value of 500,000 EUR. Fresh plum exports are 1^st^ quality, picked by
hand and farmers are paid 8 dinars/kg (0.14 \$/kg) wholesale. Serbia's
main competitors in the region are Poland, Czech Republic, and Hungary.

+--------+------------+-----------+-----------+----------+----------+
| **     | **No. of   | **Pro     | **P       | **       | **       |
| Year** | plum trees | duction** | roduction | Export** | Export** |
|        | in**       |           | per plum  |          |          |
|        |            | **        | tree      | **(      | **('000  |
|        | **'000**   | (tones)** | (kg)**    | tones)** | USD)**   |
+--------+------------+-----------+-----------+----------+----------+
| 1996   | 45,662     | 609,163   | 13,3      | 5,980    | 2,957    |
+--------+------------+-----------+-----------+----------+----------+
| 1997   | 45,109     | 462,116   | 10,2      | 5,997    | 2,936    |
+--------+------------+-----------+-----------+----------+----------+
| 1998   | 44,589     | 477,537   | 10,7      | 7,143    | 3,463    |
+--------+------------+-----------+-----------+----------+----------+
| 1999   | 43,242     | 379,537   | 8,7       | 11,389   | 4,066    |
+--------+------------+-----------+-----------+----------+----------+
| 2000   | 43,103     | 351,307   | 8,2       | 11,785   | 4,519    |
+--------+------------+-----------+-----------+----------+----------+
| 2001   | 42,596     | 333,106   | 7,8       | 16,507   | 5,550    |
+--------+------------+-----------+-----------+----------+----------+
| 2002   | 42,393     | 197,486   | 4,7       | 9,434    | 4,123    |
+--------+------------+-----------+-----------+----------+----------+
| 2003   | 44,000     | 400,000   | 9,1       | 15,000   | 6,555    |
+--------+------------+-----------+-----------+----------+----------+

Source: Official Serbian Statistics.