Serbia: marketing organic products

The Serbian organic sector has experienced major developments in 2011: a new law came into force in January, and a Rulebook on Control and Certification in Organic Production and Methods of Organic Production was published in July. The new subject “Organic Production“ was added to the curriculum in 33 secondary schools. The training of teachers of agricultural subjects in schools was started in November. Also in July 2011, the umbrella organisation Serbia Organica began a collaborative project with Belgrade City Markets that took the form of a green market in the city, and the intention is to include further green markets in Belgrade.

With Serbian consumers having to use an increasing part of their budget to purchase food products, the level of spending in the retail food trade is correspondingly high. Overall, the food market in Serbia was valued in 2008 at 6.3 billion euros, with a per capita spend of about 630 euros which is up from 370 euros in 2004 (Source: The Economist Intelligence Unit 2010: Data Tables for Serbia). In contrast to other countries in the south-west Balkans, the concentration of retail outlets is not yet as advanced and more than 70 % of all food products are still sold by an estimated 30,000 small grocery shops. The cash and carry market Tempo was the first to open a retail chain in 2004, and Intermarché/ Interex, Mercator, Delta, Metro and Super Vero followed. (Picture: serbian sour cherries for the fresh market and especially for processing)

Although the disposable income of the typical Serbian consumer has increased over the past ten years, this rise has been outweighed by an even stronger rise in food prices, which has limited growth in the consumption of organic products. Many certified organic products are imported, with only fruit, vegetables and cereals being of Serbian origin. Hardly any certified organic animal products are available and the market is dominated by imported baby food, since Serbian baby food is still not certified. Besides better availability of food, there is a constant growth of certified cosmetic products, whereas organic textiles are still difficult to find.

The retail sector for organic food in Serbia still needs to develop, since there are only a few specialised outlets in Belgrade and Novi Sad, such as some green markets, specialised health food stores and supermarket chains. Although organic products have found their way to supermarket chains, not much has been done to promote them or to indicate their availability, and consumers seem to have been left to discover organics on their own and to compare their advantages with conventional products. In Serbian supermarkets, you see a growing number of health counters with products claiming health benefits alongside organic products, but without any explanation of what “organic” really means. (Picture: jam from Terra Organica)


GIZ Private Sector Development Program (ACCESS) field research and interviews with different stakeholders from this sector, as well as with consumers, indicate that the average Serbian consumer associates the term organic with health. Therefore, promotion and public awareness campaigns should focus on this aspect. Value can be added to organic products by pointing out their natu¬ralness and their contribution to environmental protection. For further development of the local organic market, a strong and intensive campaign with a clear communication strategy, directed towards defined target consumer groups, is definitely needed. (Picture: Serbian stand at the Green Week in Berlin, Germany)

Important traders and distributors engaged in organic food in 2010 were Biospajz, Beyond, Hema-Kheya-Neye, Lucar, Natura, Moj Salas, Bio & Organic, Fund Organic Serbia, Albox, and Pretti-organica. Organics were also available at the green markets: Kalenic Green Market in Belgrade and the Fish Market and the Liman Market in Novi Sad. The supermarket chains Univerexport, Mercator, Tempo, Metro, Maxi, Idea and DM Drogerie Marketalso offered organics.

With the aim of improving the promotion and sale of organic products, as mentioned above the National Association Serbia Organica and Belgrade City Markets started working together in July 2011. For the time being, the results of this initiative are seen in one of the city’s green markets, and the intention is to spread the idea to other green markets in Belgrade. Every two weeks, in the period from July to November 2011, consumers had the opportunity to buy organic products, to meet with producers, and get information about organic farming. Since the success of the project is in the interest of both buyers and sellers, plans are in place for the organic market to become a regular part of the Belgrade City Markets. To help promote the sector, organic producers were present at BioFach in Germany and at the Agricultural Fair in Novi Sad in 2011. In September 2011, Bio Balkan Expo in Belgrade took place for the second time (picture).

Including the new subject “Organic Production“ in courses for agricultural technicians in 33 secondary schools in 2011 can be seen as a boost to the development of the organic sector in Serbia. The classes have been taught since September of that year, resulting in around 4,000 young adults acquiring knowledge of organic agriculture and food. In order to further promote organic agriculture Serbia Organica, in cooperation with GIZ, started in November 2011 to train more teachers of agricultural subjects for posts in secondary schools. (Picture: raspberry canes)

Organic food markets in Central and Eastern European countries in the EU are still at the emerging stage: sales in Poland are valued at about 50 million euros, in the Czech Republic at 20 million euros, and in Romania and Bulgaria they are between 10 and15 million euros. Target markets for organic products from Serbia are considered to be those EU countries that do not yet show signs of saturation - Italy, France, UK, and Germany in particular.

Some organic products from Serbia are expected to have considerable market potential in the EU. Soybeans, for example, can be used for producing edible oil or for fodder. Further processing options are hydrolysates, milk, emulsifiers and intermediates for the cosmetics industry, etc. Cereals like wheat, corn or barley could be increasingly offered for animal feed, as whole grain or as flour. Since organic potato starch, a strategic intermediate for many foods, is practically non-existent in the EU, the production of this could be a further option. Larger amounts of onions, beans, garlic, peppers and other vegetables could be offered fresh. Raspberries, other berries and apples are already available fresh or frozen and could be processed, for example as apple pectin, or organic anthocyanin (a natural food dye), which so far does not exist on the market, could be derived from strawberries. (Picture: Processing of raspberries at Zadrugar)

In May 2010, a new law on organic agriculture was passed in the Parliament, and came into force on 1 January 2011. This law was prepared in accordance with the EU legislation on organic farming (Reg. (EC) No. 834/2007 and its implementing rules). The Rulebook on Control and Certification in Organic Production and Methods of Organic Production was published in July 2011 (“Official Gazette of RS”, No. 48/11). The Rulebook on the Import of Organic Products is in its draft phase. A workshop for revising the National Action Plan for the Development of Organic Farming in Serbia was held in November 2011 and about 40 stakeholders participated in order to review the goals and implementation measures drawn up in 2009. The Action Plan for 2012- 2016 is currently being drawn up.

More information on the development of organic agriculture and marketing is available in  “Organic Agriculture in Serbia 2012”, published by Serbia Organica and supported by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the Economic Development Program ACCESS.