2014 Volume 5 Issue 2 Pages 28-34
Serbia doesn’t have many competitive advantages in relation to the competition it faces. The growing demand for food has led to the fact that agricultural production relies mostly on the use of chemicals, which endanger human health and disrupt nature balance, and all in order to achieve a higher yield and profit. However, in the process of globalization, the only thing Serbia could rely on, except trained staff, are the natural resources. Favorable climate, large areas of arable land and forests, a healthy environment are the main prerequisites for the development of organic production (OP) in Serbia. This paper aims at giving an overview of the current situation of the Serbian organic sector especially potential, animal and crop production, governance, legal framework and market. Some solutions to overcome the main barriers to OP development are discussed. This paper is based on a secondary data review and exploratory semi-structured interviews - dealing mainly with reasons for converting to organic; marketing channels; problems; impacts; access to agricultural extension - conducted in summer 2013 with 40 organic producers randomly chosen from cities/municipalities all over Serbia. Statistical methods, SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis, induction and deduction, as well as the technique of comparative analysis were used. The results indicate the advantages which increase in the organic production could bring to Serbia, such as economic growth, increased exports, reduced trade deficit, sustainable natural resources management and rural development. For allowing OP to express all its potential, domestic market should be further developed, legal framework and governance enhanced and institutional and financial support secured. Due to high prices of organic food in the world market organic production can be a key generator of economic growth and socio-economic development in Serbia, especially in rural areas.