Support to Agriculture Cooperatives in Southern Serbia: Evolving Challenges Serbia and Montenegro.
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Transcript of Support to Agriculture Cooperatives in Southern Serbia: Evolving Challenges Serbia and Montenegro.
Support to Agriculture Cooperatives in Southern Serbia: Evolving Challenges
Serbia and Montenegro
Structure
• Background (1)• UNDP Response in economic
development (4-5)• Challenges and results in
supporting Agriculture Cooperatives (6-8)
• Lessons Learned (9-10)
Serbia and Montenegro
Background of Southern Serbia
• 13 Municipalities• Approx 500,000 inhabitants •Low income region• Least developed region.• Inter-ethnic conflict 2001.• Dilapidated industrial sector• Low number of SME• Large grey economy
Serbia and Montenegro
UNDP Response in economic development
- Southern Serbia Municipal Improvement and Recovery Programme. (3.6 million/1.6$ for Economic Development activities).
- Two main activities:1. Agriculture Cooperatives2. Guarantee Fund for MSMEs
Serbia and Montenegro
UNDP Response in economic development• Why Cooperatives? Importance of agricultureCertain degree of local
knowledge on agricultureLoss of industrial jobsProvision of part-time “jobs” Low level of productivity Bridging the inter-ethnic divide
Serbia and Montenegro
Challenges to create cooperativesInternal:Trust (the proverb of the serbian cow)KnowledgeEntrepreneurial spirit Low capitalAccess to marketsSmall Property (2 – 2.5 ha.)Poor mechanisationLow interest
Serbia and Montenegro
Challenges to create cooperatives (cont.)External:
Slow Privatization process of socially-owned coops
Taxes an social benefits (100 Euros a month salary for Director)
Low consumption of agriculture products Absence of national policy on cooperatives Access to commercial credit High market competition Poor infrastructure
Serbia and Montenegro
Results to date
• 8 Registered Cooperatives• 19 Identified potential groups• Agricultural Fair• Establishment of marketing contacts• Hands-on production and marketing
trainings
Serbia and Montenegro
UNDP: Lessons Learned
• Time + Patience + Strategy + Goal = Trust
• First step is small producers groups
• Role of hand outs and grants• Pressure in delivery• Importance of Common donor
strategy
Serbia and Montenegro
UNDP: Lessons Learned (Cont)
• Lobbying at the central level in policy formulation
• The role of local government • Non conducive environment
(registration)• Adapt to concrete local situation
(e.g. Cooperatives in the EU)
Serbia and Montenegro