The Importance of Fruit and Vegetables in the External Trade of the Republic of Serbia

Abstract

The main goal of the research is to consider and compare the importance of fruits and vegetables in external trade in goods of the Republic of Serbia. According to the Standard International Trade Classification (SITC), “Vegetables and Fruit” is a division that is dominant in Serbian exports of agricultural and food products, and it is necessary to investigate its competitiveness. The key tools used in the analysis are the coverage of imports by exports, then the Contribution to the Trade Balance (CTB) index, as well as the analysis of unit values of exports and imports, in order to compare and evaluate the structure of external trade in fruits and vegetables. The results show that fruit, according to all indicators, has a significantly higher competitiveness compared to vegetables, as well as a higher importance in external trade of goods. This knowledge can serve the creators of agricultural policy to favour the production and exports of fruit products because they can radically improve the structure of total exports, especially when it comes to processed products. Since this is a perennial plantation, the results cannot be expected in a shorter period of time. The previous research has not specifically considered the importance of this segment of agri-food exports and its internal competitiveness (having in mind the applied indicators), which is the main benefit of the study within this paper.

Agri-Food Products Quality as Exports Competitiveness Determinant of the Republic of Serbia

“…The highest unit values of fruit exports are realized on the most important export market of Serbia, that is, the EU market. According to the UV, the fruit sector achieves a high competitiveness, which should be an incentive for the production and export of fruit products in order to improve the structure of the overall export, especially when it comes to processed products (Marković & Marjanović, 2021). Besides, Serbia can be said to be a significant corn producer.…”

“…In order to improve the export structure of agricultural products of the Republic of Serbia, it is necessary to improve the quality of their production and apply new production technologies. Among the most important indicators in the analysis of foreign trade, but also internal competitiveness of exports, are the unit values (UV) of exports and imports (Marković & Marjanović, 2021). High-quality food is reflected in paying higher unit values for safety and quality food (Huang & Gale, 2009), so the UV index, as a direct measure of quality, was used as a measure of quality and necessary component of export improvement (McKelvey, 2011).…”

“…The agri-food sector of the Republic of Serbia realizes a positive and significant net export. It has a high share in total exports, employment and gross value added (Marković & Marjanović, 2021). Although Serbia has the biggest comparative advantage in the export of the agri-food products among the Western Balkans, it is necessary to increase the level of competitiveness of these products on the EU market and change the export structure, which is mainly based on products of a lower stage of processing, cereals, fruits and vegetables (Matkovski, 2021).…”

Fruit export through the prism of the high-value market and GLOBALG.A.P. certification: An analysis from Serbia

“…Fruit growing represents an important agricultural sector in the Republic of Serbia (Dašić, Stanić & Živković, 2022), and fruit crops show significantly higher competitiveness on the international market and contribute significantly more to the surplus in the exchange of agricultural products, compared to vegetable crops (Zecević et al, 2019;Marković & Marjanović, 2021). Raspberry stands out from the fruit crops, as the most economically important berry, which makes Serbia recognizable on the international market (Parausić & Simeunović, 2016;Grčak et al, 2019;Thiemann, 2020;United States International Trade Commission, 2021).…”

“…Agriculture is an important sector for the Serbian national economy, judging by numerous indicators, such as the share in gross domestic product, employment, exports, revitalization of rural areas (Bogdanov, et al, 2015;Nikolić et al, 2017;Volk, et al, 2019;Zecević et al, 2019;FAO, 2020;Dašić, Stanić & Živković, 2022). As part of agriculture, fruit production is extremely important, and local producers relatively successfully use favorable natural conditions for production and achieve international recognition and competitiveness, especially in the berry sector (Stojanović & Radosavljević, 2013;Grčak et al, 2019;Zecević et al, 2019;Marković & Marjanović, 2021;Dašić, Stani & Živković, 2022;Paraušić, 2022). The importance of fruit growing for the national economy is reflected in the achieved export value in this sector, its share in the positive balance of foreign trade, the stimulation of employment in rural areas, the smooth supply of fresh and processed fruit to the national market and other positive impacts in the sector of agriculture and rural development (Grčak et al, 2019;Zecević et al, 2019;FAO, 2020;Marković & Marjanović, 2021;Paraušić, 2022).…”