PKCG: Agricultural development needs stronger support

Agricultural production in Montenegro generates an annual income of around 450 million euros, half of which is realized through tourism, and this strategic branch of the economy needs significant state support, according to the Chamber of Commerce (PKCG).

At the meeting of the Board of the Association of Agriculture and Food Industry PKCG, it was announced that this value is higher than that recorded in construction, which indicates the exceptional importance of that strategic branch of the Montenegrin economy.

The Secretary of the Board, Lidija Rmus, said that the business of businessmen engaged in food production this year has been significantly hampered, first of all, due to the increase in input prices, due to the pandemic and the war in Ukraine.

As reported by the PKCG, she recalled the Government's measures aimed at reducing the prices of basic foodstuffs, such as the 50 percent reduction in excise duty on fuel, the introduction of a zero rate of value added tax (VAT) for flour, oil and bread.

"However, due to the constant rise in prices, it is necessary to create a better business environment with other measures. Due to the increase in the prices of all production inputs until the market stabilizes, the possibility of introducing additional subsidies to farmers and dairies for the purchase of milk, fodder and artificial fertilizer should be considered," said Rmuš.

According to her, in order to ensure uninterrupted supply, it is necessary to re-establish the system of commodity reserves of cereals, oil, sugar and energy.

Rmuš announced that food imports for five months amounted to about 270 million, which is 33,8 percent more compared to the comparable period last year, while exports amounted to 16,5 million euros, which is ten percent less, so the deficit is constantly increasing. increases.

"These data point to the necessity of a more significant involvement of the state in solving the issue of a high food deficit, and also imposes the necessity of a more active involvement of all actors in society in order to support producers through better promotion of domestic products, their better positioning in trade chains and significantly greater investments in development of domestic capacities for food production", stated Rmuš.

She said that the allocation from the national budget for the development of agriculture from 1,5 to 1,7 percent, as it was until now, was unacceptably small and certainly had an impact on such a high food deficit, in addition to the rise in prices, which partly affected realized value of imports.

The State Secretary of the Ministry of Agriculture, Forestry and Water Management, Budimir Mugoša, said that every serious country is seriously committed to solving the problem of providing sufficient amounts of food for its inhabitants.

According to him, a model must be found in Montenegro in order to form stocks, which will be discussed with businessmen.

"In Spuž, the state has the capacity to accommodate over 30 thousand tons of grain, which is enough reserves for three months," said Mugoša.

He also found it unacceptable that the allocations from the national budget for agriculture are very small and cited the example that in Serbia the law defines that these allocations amount to five percent. He cited the problem of collecting food producers' claims as one of the biggest problems, which is why the state must be more actively involved in finding a solution.

Mugoša told the producers that they must unite, because only in this way they will be able to achieve better results, increase production and create better business conditions through an agreement with decision-makers at the state level.

He told the agricultural producers that they must use the available grants to ensure production, stating that 300 euros were earmarked for these purposes, and only 13 euros were used.

During the discussion, the businessmen pointed out the very pronounced problem of the lack of labor in that sector and that it is necessary to facilitate the procedures for obtaining work permits for foreigners.

"Everywhere, the problem is to motivate people to engage in agriculture." We must do everything to keep people in the village and preserve it," said Mugoša.

The members of the Board pointed out the necessity of planned production.

Branko Pejović from Zrnožit believes that the sector needs a purchase organization and guidelines for farmers on what to produce.

"Without planned production for a well-known customer, there will always be problems." If everything is done according to plan, everything will be cheaper by up to 30 percent", announced Pejović.

The representative of the Group of Industrial Producers of Bakery Products, Damir Papić, said that industrial bakeries, which provide about 80 percent of the market with the basic type of bread, should be given easier access to favorable credit arrangements, that is, provided with the possibility of using grant funds from IPARD or MIDS in order to modernize and was more competitive.

He believes that the bakery industry has particularly shown social responsibility in difficult business conditions in the previous two-year period, even in conditions of price restrictions.

The representative of Plantaž, Milena Mugoša, pointed to the multimillion-dollar damage caused by the recent city, and said that she is convinced that the state as the majority owner, as well as all other entities, will contribute to preserving the business of this significant company.

She said that this year, despite the financial problems they are in, with the great effort of the Plantation workers, they expected an extremely good harvest of peaches, table and wine grapes, but that the ten-minute hail destroyed a significant part of the production.

Businessmen pointed out the necessity of establishing adequate anti-hail protection, which must be provided due to the increasingly frequent precipitation in the form of hail that occurs as a result of climate change.

The Head of the Department for Payments in the Ministry of Agriculture, Forestry and Water Management, Danka Božović, presenting information on the realization of public calls through IPARD programs, said that around 22 million euros of grants from IPARD funds should be used during this year and the next, but that a big problem in already signed contracts represent a jump in prices.

She stated that they are working intensively on negotiations with the European Commission on its changes in the form of a special supplement, in order to reduce to a certain extent the losses of program users due to increased costs.

Božović announced that activities have been initiated so that natural persons also get the right to a VAT refund on the funds they spent for the investment through IPARD.

"Until the end of June, EUR 12,5 million in non-reimbursed support was paid, and another EUR 39 million remained, which is a really small percentage of utilization," Božović said, adding that securing financial resources is a big problem for applicants.

According to her, the next year is crucial for withdrawing as many funds as possible intended for non-reimbursable support, which will contribute to quality preparation for IPARD 3, which is worth 63 million euros.

Hygiene specialist at the Institute for Public Health of Montenegro, Zorica Đorđević, introduced the businessmen to the implementation of the National Salt Reduction Program, with a focus on setting and achieving goals for its content in certain food products.

"The main goals of the Program are, among other things, improving the awareness and knowledge of the population and professional public about the importance of reducing excessive salt intake in food, and reducing its content in processed food, in cooperation with food manufacturers and restaurateurs," said Đorđević.

Independent consultant in the PKCG Projects Sector, Sandra Perić, presented the BLUEfasma project, which aims to strengthen the innovative capacities of SMEs, maritime clusters and networks in the MED coastal areas in order to support the circular economy and blue growth in fisheries/aquaculture.