Limited progress was made regarding horizontal issues. The 2012 agricultural budget was increased by 19% compared to the previous year. Direct aid payments account for more than 90% of the support measures. There was an increase in the allocation for rural development measures in the budget. The livestock sector continues to benefit from headage payments and milk subsidies. These are linked to compliance by producers with legislation on animal identification, registration and movement control and participation in national animal health measures. Direct payments will gradually need to be brought into line with EU rules, decoupling direct aid payments from production. Support measures continue to be reviewed and revised on an annual and ad hoc basis. This does not provide security and predictability for producers and processors to engage in the required investments to modernise and prepare for the absorption of future EU assistance and competitive pressures in an increasingly liberalised economic environment. The Agricultural and Rural Development Strategy for the period 2011–2020 has not yet been adopted.
Progress can be reported with regard to establishing a reliable database for policy decisions and monitoring policy impact. Preparations for the agricultural census are ongoing and the census is expected to be carried out in the autumn of 2012. Structures to implement the Farm Accountancy Data Network (FADN) are being established with key responsibilities assigned, core staff appointed and trial data collection under way. Preparations are under way for setting up an Integrated Administration and Control System (IACS).
The Market Inspection Division of the Ministry of Agriculture, Trade, Forestry and Water Management carried out a total of 2,507 inspections in the market surveillance area in 2011, including compliance with technical regulations and product safety. However, administrative capacities in terms of training and material assets remain inadequate.
Preparations in the area of horizontal issues are on track.
Some progress can be reported with regard to alignment with the common market organisation. The adoption of legislation in line with the acquis is continuing, with the adoption of implementing regulations on fruit juice in October 2011 and coffee and chicory in 2012. Implementing legislation was also adopted in the wine sector, on a vineyard register in September 2011, on quality standards for wine with geographical indication and on labeling in November 2011, and on the testing of grape must, wine and other products in December 2011. Work has begun on viticulture zoning. The vineyard register was opened in June 2012. Three oenological laboratories have been authorised to carry out analyses. However, the capacity of the administration in charge of the wine market organisation needs to be strengthened. A law on spirit drinks is in preparation with a view to aligning with the acquis in the spirit sector. Preparations in this area remain at an early stage.
Regarding rural development, progress can be reported concerning the preparations for the management and control system under the Instrument for Pre-Accession Assistance in Rural Development (IPARD). The Department for Rural Development in the Ministry of Agriculture, Trade, Forestry and Water Management (MATFWM), which is planned to become the future Managing Authority, is finalising its organisational structure and procedures as provided for in the IPARD programme. The Directorate for Agrarian Payments, which at present has an allocation of 105 posts, needs to strengthen its capacity in order to implement the pre-accession assistance. The capacity of the National Fund and the Audit Authority still needs to be supported so that they can fulfil their role in the implementation of IPARD. Preparations in the area of rural development are on track.
Little progress can be reported in the area of quality policy. Efforts have focused on promoting the opportunities which the Law on Geographical Indications offers to producers and processors. Preparations in this area have started.
Progress in organic farming is limited. The Ministry established a task force to prepare a national action plan for the development of the organic sector in Serbia over the next 5 years. Preparations in the area of organic farming are at an early stage.
There has been progress in the area of agriculture and rural development, including with regard to agricultural statistics. Structures and resources for the implementation of rural development under IPARD have advanced well, but additional capacity building is still essential. Overall, in the area of agriculture and rural development, alignment with the acquis remains at an early stage.
Source EU accession report 2012
