Serbia’s Minister of Agriculture, Forestry and Water Management met in Belgrade with representatives of the “Šajkača” Farmers’ Association and the Association of Milk Producers of Šumadija and Pomoravlje, who had staged protests and road blockades in recent days. The meeting focused on outstanding issues in the dairy sector and options to stabilize the market and improve the position of producers.
According to the ministry, an overview of the current situation was presented during the talks, and it was assessed that dairies currently have no cheese stocks, after domestic companies purchased surpluses, with the ministry supporting the placement of cheeses through retail chains. Minister Dragan Glamočić said this, as he put it, marked a first step toward easing market pressures and creating room for further milk purchases, calling on producers to notify the ministry if any dairy claims it still has stocks.
Milk purchase prices were also discussed. The minister said the state cannot administratively set the farm-gate price, but that the ministry is in daily communication with the dairy industry and has appealed for an increase. According to him, some dairies have already raised the price by five dinars per liter, while talks with the remaining companies are expected to continue in the coming days.
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The ministry also announced the introduction of contractual obligations between producers and processors, i.e., buyers. Glamočić said a decision on mandatory written contracts should be placed on the agenda of a Serbian government session as early as next week, and that farmers will also take part in defining the key elements of the contracts. Penalties for failing to comply with contractual obligations, according to the announcement, will amount to up to two million dinars.
The minister also noted that, in March, the procedure should begin for a Draft Law on Trading Practices, which, as stated, would more precisely regulate payment deadlines within the supply chain. According to him, this area has so far not been regulated in a systemic way.
As part of measures to protect domestic production, Glamočić said an initiative has been launched to raise tariffs on milk powder—by nine percent for imports from the European Union and by 20 percent for imports from third countries. At the same time, he said talks with the European Commission are continuing on the possible introduction of levies on cheeses and milk powder.
The ministry also announced a new Rulebook on the declaration, labeling and advertising of food, which would introduce a graphic “100% from Serbia” label for products whose ingredients are entirely of Serbian origin. A campaign to encourage consumption of domestically produced milk and dairy products was also announced.
He also said procedures for subsidy payments have been accelerated and announced that payments of 18,000 dinars per hectare will begin as early as tomorrow, explaining that applications are processed immediately upon receipt, without waiting for the public call to close.
