The focus of the Ministry of Agriculture, Water Management and Forestry this year will be to strengthen domestic production in order to reduce the import of those products that Montenegro can really produce without major problems, such as foodstuffs in the dairy and meat processing sectors.
In addition, the most important task of the ministry will be to make it easier for citizens to apply for the IPARD III program and to use the money that the European Union (EU) grants to farmers as much as possible.
This was said by the relevant minister and deputy prime minister in an interview with "Vijesta". Vladimir Jokovic, who stated that inflation of food products will be present this year as well, but that there will be no reason to worry when it comes to regular food supply.
Joković also stated that the current government is determined to stop the illegal exploitation of gravel from riverbeds and claims that it will no longer exist.
He said that the Agricultural Budget for this year is one of the most important topics they are dealing with, and that after the state budget has been adopted, they are approaching its precise definition.
"We will quickly come out with a precise and completely transparent overview of the Agrobudget", said Joković, when asked how much the Agrobudget will amount to, and whether he thinks that this sum is sufficient for the development of agriculture.
The IPARD III program will improve agricultural production
Speaking about the results during the period when he was at the head of the ministry, Joković pointed out that within the framework of the IPARD III program, 63 million EU grants will be available to agricultural producers in Montenegro until 2027.
"In this way, agricultural production in Montenegro will be improved, the competitiveness and quality of agricultural products will increase, both on the domestic and foreign markets. Gradual harmonization with EU rules, standards, policies and practices regarding EU accession is also a priority, which will be achieved through economic, social and territorial development in terms of smart, sustainable and inclusive growth through the development of physical capital and capacities of agricultural producers, as well as through diversification and development of economic activities and improvement of the quality of life in rural areas", said Joković.
Farmers can apply for the new program from 2024, given that the available money from the IPARD II program can be used until the end of 2023. For IPARD II, the state received 52 million from the EU, but due to numerous administrative obstacles, the multi-million sum of that money was not used.
When asked what he has specifically undertaken since becoming minister to ensure that the money from the IPARD fund does not go to waste, Joković replied that together with the Government they are working on the formation of a credit-guarantee line/fund, in order to make it easier for manufacturers to invest more easily and improve their production capacities.
"That is one of the most important tasks we have - to make the application procedures easier for citizens and to use the money available to us to the maximum extent possible. There are several mechanisms that we are devising that should lead to that goal, and here I am going to single out one that I personally think would be the most useful. Since we recognize that the biggest obstacle to withdrawing money is the initial capital that agricultural producers have to provide for planned investments, the Ministry of Agriculture and the Government are working on a model of forming a credit-guarantee line/fund, in order to make it easier for our producers to invest more easily and improve their production capacities . Also, one of the aid models is the creation of a legal basis for exempting VAT for individuals who are beneficiaries of the IPARD program, which was not the case in the previous period," said Joković, adding that in the coming period he will work with special attention to solve the problem. and the creation of new mechanisms for the successful withdrawal and realization of European money.
The Government adopted the Information on the need to provide financial support through the creation of a special fund at the session held in August.
We import what we can produce
In response to the statement that Monstat's data show that the import of food for Montenegro for the first nine months of this year was worth 16 times more than the export, and to the question of how to reduce this ratio, Joković said that the import of agricultural products is increasing year after year, but this year year, such a picture emerged as a result of inflation caused by instability and uncertainty in the market.
"The fact is that the import of agricultural products can be divided into three parts. The first part is the import of those products that Montenegro can never produce, and which occupy a significant part of imports. These are e.g. fruits and fruit products from tropical regions, fish and fishery products, sunflower oil, various confectionery products, alcoholic beverages. Then there are products that are imported and Montenegro does not have comparative advantages to be competitive on the world market - pork, cereals, cereal products, nutritional supplements and the like. Then we also have products that Montenegro can produce and we also import them. We focused on the third group of products, that is, to strengthen our agricultural production in the coming period in order to reduce the import of those products that Montenegro can really produce without major problems. First of all, it is the dairy sector and the meat processing sector, followed by greenhouse production, small processing plants with high-quality products, wineries and the like," said Joković.
State land under favorable conditions
Joković sees the transfer of state agricultural land to farmers on favorable terms as a development opportunity for animal feed production. When asked how far that process has come, the minister stated that during the last year work was done on the identification of state areas, and that these activities will continue this year as well.
"These areas are a significant potential for the production of fodder and will be given to agricultural producers who need it the most, all with the aim of increasing the production of coarse fodder and increasing the profitability and economy of milk production on farms. We will inform all interested parties and the general public about the method of transfer of state-owned agricultural land and the criteria for obtaining it for lease as soon as we finish all the procedures related to that process. That will happen soon," said Joković.
Guaranteed stock of products from Serbia
When asked whether there is still a danger of interruption of the regular supply of basic food products, Joković claims that the state currently has sufficient quantities of food and drink, as well as animal feed.
"Considering that Montenegro is mostly a net importer of food, the current situation and the crisis in Ukraine initially caused an additional challenge regarding the procurement of certain agricultural goods. The prices of all goods that are used as inputs in agricultural production have risen significantly, causing import inflation and even shortages in certain moments. Therefore, Montenegro had to take measures regarding the intensification of trade in agricultural products with existing and alternative markets, especially with regard to cereals and oilseeds. The Government adopted the Plan for Intervention Procurements in the Conditions of Serious Disruptions on the Market for 2022. It provides the basis that, in the event of a problem in the supply of the market, the Government can make a decision to activate the Plan and order the procurement of those products for which it is estimated that there is a problem in the supply", said the minister.
At one point last year, neighboring Serbia banned the export of certain products, which included Montenegro. Joković said that this situation will not happen again, stating that recently during an official visit he had a conversation with the Deputy Prime Minister of the Serbian Government. Ivica Dačić and Minister of Agriculture Jelena Tanasković agreed that in the event of a possible new food crisis, Montenegro will have privileged access to guaranteed supplies of basic foodstuffs from Serbia for a period of six months under the same conditions that apply to the Serbian market and the market of the Open Balkan countries.
"It was also agreed to take steps towards the liberalization of the export of raw milk to Montenegro starting on January 1, 2023. Therefore, in the management of this work, we at the Ministry of Agriculture are guided by the ethics of results and the ethics of responsibility, and while we are doing what we are doing now, the citizens have no reason to worry," said Joković.
The fall in the food price index will not affect Montenegro
Asked to comment on the situation on the international markets for food products and animal feed, or whether prices can be expected to stabilize and return to their old values, Joković pointed out that the FAO food price index is in decline, but that, due to the advance regime of procurement of agricultural products that Montenegro has, with traditional importers, certain quantities purchased when the price reached its peak and inflation will be carried over into 2023.
"This increase in prices also affected the consumer basket of citizens, so from the beginning of 2022 until today, the consumer basket for food products increased by 19,7 percent, which was also felt in the standard of citizens. On the other hand, we have an increase in the value of agricultural production in 2022, taking into account that in the first three quarters, 5,7 percent more agricultural products were purchased compared to the same period of the previous year, so our agricultural producers marketed their products better compared to on last year and thus reduce the impact of the increase in input prices", stated Joković.
They will continue to help those affected in the dairy sector
Part of the herdsmen repeatedly pointed out that the situation in that area is unsustainable, demanding higher subsidies per liter of purchased milk.
Joković did not answer precisely what the premiums per liter of milk will be next year and whether they will be increased compared to this year.
"If we want to speak objectively, appropriately and accurately, then we have to start from the fact that the situation in the dairy sector is difficult for several reasons. We are still feeling the effects of the covid crisis, input price spikes and other things. Therefore, it is not simple and the occasional impatience, and sometimes dissatisfaction, that we hear from individual herders is understandable. However, this should also be known - precisely because of these reasons, the Ministry reacted with regular budgetary measures in 2022, as well as extraordinary ones, in order to respond to the challenges we were faced with over the years. Regular premiums for delivered raw milk to economic entities (dairies and cheese makers) amounted to 0,08 cents basic premium, plus 0,08 cents for milk quality and 0,01 cents for a larger quantity of delivered milk. In addition to the regular premiums, 0,03 cents per liter of milk have been extraordinarily paid since June of this year," said Joković.
In addition to these direct premiums for milk, Joković also said that producers had the opportunity to use other support mechanisms, such as support for fodder production (sown areas).
"So, there are problems, problems appear, but we are here to solve all problems rationally. This is how we worked during this year, and we will continue to do so next year as well".
Terminated individual contracts on the exploitation of gravel
Joković also claims that this Government is determined to stop the illegal exploitation of gravel from riverbeds, especially from the Morača riverbed, which has been one of the main topics in the public eye for a long time.
This summer, at the Government session, he announced the ban on exploitation from all watercourses in Montenegro and the involvement of all state authorities in this problem.
When asked what specific actions have been taken since that moment, whether and who has been prosecuted for illegal exploitation, and whether there is knowledge that exploitation is still happening today, Joković says that an interdepartmental team has been formed and that they already have some good results.
"There will be no more illegal exploitation of gravel. Some contracts with individual companies on the exploitation of gravel have been terminated. Resolutions were passed on the demolition of certain illegal buildings along the Morača riverbeds, which are connected to the illegal exploitation of gravel. As everyone can clearly see today that this government is dedicated to fighting organized crime, corruption and the mafia, our decision to stop the illegal exploitation of gravel from riverbeds is part of that wider fight against crime. Already at the beginning of next year, I expect more visible signals that we have stood in the way of this segment of criminal activities in our country," concluded Joković.
They are finalizing the development of the agriculture development strategy until 2028.
Joković also said that the ministry headed by him in just over half a year had made notable achievements, such as the initial land inventory, categorization and recording in cooperation with municipalities, and that they allocated almost one million euros to support the construction of water supply in rural areas. areas in 17 municipalities. He announced that the development of the agriculture development strategy until 2028 is coming to an end soon.
"When we talk about our international cooperation, the Ministry of Agriculture hosted the sixteenth annual meeting of the ministers of Southeast Europe in Budva, where the ministry and Montenegro took over the chairmanship of the Assembly of the Permanent Working Group for Regional and Rural Development in Southeast Europe. It was a great event that was rated as outstanding both regionally and at the European level. Therefore, we are dedicated to working both internally and externally, and the effect is obvious - rapid and continuous progress in the sector for which we are responsible," said Joković.
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