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Italian seedlings from Sirig-based 7.juli - How will Ferrero’s investment in Serbia look like?
Thursday, 10.07.2014.
15:35
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The first plantation of hazelnut of the Italian company Ferrero in Serbia will be planted on lots of Sirig-based agricultural company, 7. Juli eKapija finds out. .
As the Ministry of agriculture said for our portal, the project comprises that on this location, basic plant of hazel bush and develop nursery production so that nursery provides seedlings, i.e. reproduction seedlings material which would be used for planting new plantation plants.
New plantations would be grown by Serbian producers procuring seedlings at favorable terms with the financial support of the state, at the same time developing cooperation relations with the Italian company which would later purchase hazelnut.
- The plan is that plants of hazel bush which will be comprised in the Ferrero project are planted with an adequate sort (Italian kinds- Tonda Gentille D. Langhe, Tonda Romana,Tonda Giffoni, etc.), convenient for confectionary industry and with an appropriate growing methodology – the Ministry says.
- The Italian party would provide to future hazelnut producers procurement of seed material at significantly more favorable prices while the Ministry of Agriculture would provide financial support – refund of costs of procurement of purchased seeds of hazel bush through grants in percentage ratio and through credit funds of bank where the ministry subsidizes part of an interest rate.
As it was previously announced, the suggestion of Ferrero is that the implementation of an investment starts in September. The Ministry organized a working group in charge to provide support to the Italian company. It is now being checked whether the lots of agricultural company, 7.juli, a subject to restitution and the meeting of Ferrero representatives and the Institute for Science implementation in agriculture was organized with an objective to provide education support for future on site associates.
It was planned that hazelnuts plants in Serbia increase to 10.000 from current 1.000 ha until 2020, 40% of which would refer to large plantations, i.e. commercial farms and 60 % to smaller farmers.
In order to provide raw material base for its confectionary industry, Ferrero set up a similar Center for hazelnut production in Turkey, Georgia, Chile and some other countries as it is planning to set up in Serbia. In Serbia, 75% of territory is favorable for hazelnut growing so the ministry thinks this is a chance for our country to increase the knowledge level, acquire new technologies, employ people and motivate them to do business in this profitable agricultural branch.
Ferrero will buy the largest quantities of produced hazelnut while quantities which will not be purchased this way will be easily placed both at the local market (since major quantities are imported) and foreign market, the representatives at the Ministry claim.
- Hazelnut production is deficit and there is a huge demand for this fruit kind at the world market which guarantees very convenient and stable hazelnut price in purchase process.
Apart from that, representatives in the ministry say that buyers are mostly dissatisfied with the hazelnut quality from Turkey which is the biggest producer so more quality domestic producers will be competitors at the market.
Confectioneries are the biggest hazelnut buyers and they purchase some 75% of world production, out of which Ferrero as the biggest individual buyer purchases 22 to 27%.
The objective is to decrease import
Today, Serbia imports 90% of hazelnut. In 2013, according to the Republic Statistical Bureau, 1.446,5 tons of hazelnut without shell totaling EUR 6,8 mil was imported, majority part from Turkey and a bit from Italy and Georgia.
With the construction of nursery, Ferrero’s project will, the Ministry informs, decrease seedlings of hazel bush import.
Subsidies
The Ministry of Agriculture and Environmental Protection planned a set of measures for development of fruit growing sector and thus hazelnut production and planting new plants of hazel bush. In 2014, subsidy for planting new plants of fruit increased, i.e. funds return per investment totals 40-55% compared to last year when it totaled 30-45%.
Individual producers as well as legal entities can apply for subsidies when planting new plants of hazel bush if they registered their agricultural farm and carried out registration until March 31 this year.
Ivana Bezarevic
