In 2023, Serbia’s agricultural industry saw the operation of 3,198 companies, employing 74,000 workers and generating a VAT of 2.24 billion euros. The majority of these companies were focused on food production, accounting for 82% of the industry, followed by beverage production at 17.4%, and tobacco at just 0.6%, according to Biznis portal.
The total turnover for the agro-industry was 10.64 billion euros, with 55% of this generated by large companies, according to the Republic Institute of Statistics (RZS) analysis titled “Structural Changes in Agriculture and Their Impact on Economic Growth in Serbia.”
Micro-enterprises made up the largest portion of the sector, accounting for 73.6% of the companies. However, large agro-industrial companies dominated in other areas such as employment and turnover. Of the 74,000 workers, 45% were employed in small and medium enterprises (SMEs), while 27.3% worked for large companies.
The report highlights that the privatization of food industry companies and the influx of foreign capital has significantly shaped the sector, positioning large companies that strongly influence economic growth. In the agriculture, forestry, and fishing sectors, seven companies had a VAT exceeding 10 million euros in 2023, and these seven companies employed every fourth worker, generating 27.4% of the total GVA of the sector.
Among these large companies are major players like Srbijašuma, Vojvodinašuma, Al Dahra, PIK Bečej, Corteva Agriscience, and Carnex. Interestingly, out of 3,198 agro-industrial companies, the seven largest accounted for 21.7% of the agro-industry’s VAT, or 487 million euros. Six of these seven companies are majority foreign-owned, and they operate in key urban areas. These companies, primarily in food processing, contribute significantly to the sector’s profitability.
The majority of these large companies include notable international names such as Philip Morris Operations, Farmina Pet Foods, Coca-Cola Hellenic, JT International, and Frikom. Despite their success, agro-economic analyst Milan Prostran points out that Serbia’s agricultural and food sector has suffered significant damage since privatization began in 2001. He claims that the privatization process, which violated laws and led to the loss of agricultural land, severely weakened Serbia’s food production capacity.
Prostran explains that before privatization, the agricultural and food sector was crucial for food security in Serbia, supplying 45-50% of the market’s food until the 1990s. However, post-privatization, Serbia’s agro-industry has seen a dramatic reduction in capacity, with fewer operational factories in sugar and oil production, leading to less competitiveness and a weakened ability to enter global markets.
In summary, while Serbia’s agro-industry remains a significant part of the economy, it faces challenges stemming from privatization and foreign ownership, leaving the country with a reduced ability to meet market demands and compete internationally.
