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3. Intervention
The federal budget has planned 650 M Dinars [approx. 10 M USD] for this year's export subsidies to aid the export of the entire agricultural and food processing industry, five point seven percent [37M Dinars] of which are earmarked for exporters of cattle, fish, meat and meat by-products.

Participants of the STOFO meeting have judged this rate of subsidies as inadequate and they want the budget restructured and an increase of their rate of subsidy from 5% to 21%, so that there will not be a repeat of last year's action which saw the bulk of exported meat going to Republic of Srpska and Macedonia. "Without drastic changes, these two republics will also be the major purchasers of Serbian export beef, again.

Keeping in mind the small size of these markets and, the heavy competition from other countries, Slovenia, Croatia, Hungary and Slovakia, [all of these countries have a much higher level of livestock export subsidies - from 40% in some and up to 100% in EU countries], we should ask ourselves how we will be able to maintain the same levels of exports to these markets. The level of stimulus for the export of agriculture and food products maintained for the last 3 decades in Yugoslavia has made YU agriculture competent in the world market resulting, until 10 years ago, with an agricultural export market worth approximately 1.3 billion USD annually, of which livestock exportation accounted for 300-400 M USD," said Njegomir.

Source: Ekonomist Magazin, Number 96, 25 March 2002, "Hej, haj, bas nas briga..." by Nadezda Vodenicar

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1 Stock Feeders Report
2 Which way to Europe?
3 Intervention
 
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