Market Assessment

Sector analysis: Meat and Milk in Zlatibor Region, Serbia, 2011

    This sector analysis was undertaken by the Private Sector Development 'PSD' project in Serbia implemented by the regional development Agency Zlatibor on the territory of the six local self-governments of Zlatibor Region. The project is financed by the Swiss Government through the Swiss Agency for Development and Cooperation (SDC) with an amount of 1.65 million CHF. It applies the M4P (Making Markets Work for the Poor) approach with the view ot facilitate sustainable system change in the market, aiming to contribute to the creation of profit and employment.

    The project has chosen to provide support to the meat and milk sector for the following reasons:
    Relevance: It is estimated that almost 13,000 people (30% of the total agricultural population), i.e. 3,700 households (24.2% of the total
    number of households) make profit through livestock as their primary activity. Annually, 121 million litres of fresh milk is produced
    in the Region (8.2% of the total production of Serbia), i.e. over 4,000 tons of fresh meat and 1,500 tons of processed meat products.
    Potential for creating profit and employment: In Zlatibor Region, there are 17 dairies which deal with milk production and processing, as well as 44 slaughterhouses which deal with meat production and processing. In Zlatibor Region, there is 11% of the total number of dairy cows (481,083 cows) in Serbia. The Region is well known for the traditional production of dairy products (kajmak and cheese) and processed meat products (pork and beef smoked ham), with considerable recognizability and participation in the domestic market.
    Intervention potential: In the Region, there are several recognized drivers of change with a significant market position. With the resources provided by PSD and in cooperation with the leaders in the production and processing of milk and meat, remarkable results could be achieved through interventions directed towards system changes by building up human resources in primary and secondary production, partnership and associations at different levels of production and processing, spread of good production practice, protection of geographical indications and promotion of typically regional products.

    Summary of results
    Based on market analysis, the project will try to achieve system change in the meat and milk sector within two areas of intervention:

    Improvement of primary production quality. The project will tend to support activities which will contribute to the development of cattle productivity, and thus create opportunities for making more profit and employment. Increase in productivity can be achieved by developing the genetic potential of cattle in Zlatibor Region, where veterinary stations providing artificial insemination services have the most important role. In order to achieve the development of genetic potential, it is necessary to create strong connections between veterinary stations and Centres for artificial reproduction and artificial insemination so that flow of information would be improved with the aim to raise producers’ awareness about the importance of investing in the genetic potential of cattle, marketing of high quality reproductive material would be
    improved and distribution channels of high quality material would be developed.

    Strengthening the competitiveness of traditional meat and milk products. The possibility for creating profit and employment is seen in strengthening the competitiveness of traditional meat and milk products in order to meet the market demands. It is particularly important to connect producers with markets at the regional level, such as the market of tourism and catering (hotels, restaurants, etc.). In this respect, the project will support activities on creating a regional brand which would include traditional milk and meat products, and which would be used as a quality control mechanism.

    Associated Activities and Documents
    Market Assessment
    »Market analysis of the fruit sector in Zlatibor county, Serbia, 2010
    »Market analysis of the tourism industry in Zlatibor County, Serbia, 2010