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Meeting of Agriculture Association Board

23/02/2018

The Agriculture and Food Industry Association Board of the Chamber of Economy of Montenegro discussed information on the economic trends in agriculture in 2017, public call for IPARD funds, dual education, budget for agriculture in 2018. The Law on the Chamber of Economy was presented as well. The Board adopted the Work Report for 2017.

The agricultural companies have been facing a number of problems in business for years, such as:

  • Debt collection;
  • Inadequate financial support by the banks (high interest rates, expensive and complicated procedures when applying for loans);
  • Commercial and financial pressure of the powerful regional food producers, as it affects inadequate market positioning of domestic products;
  • Inability to export domestic products to the market of the Russian Federation due to embargo (especially wine), as well as the collection of debts from Agrokor group;
  • Domestic products are not sufficiently represented in the tourist offer, which would help promote Montenegro;
  • High taxes at the local and state level etc.

In order to resolve these problems, according to the Board members it is necessary to:

  • amend the Law on the terms of settlement of financial obligations as well as the Law on companies due to safer debt collection;
  • facilitate access to the loans for the agricultural companies;
  • lower interest rates, especially for projects in primary agricultural production;
  • carry out a national campaign related to buying local products in order to strengthen consumers’ awareness of its benefits and create an environment for their better positioning;   
  • train business entities to use IPARD funds better;
  • establish stronger links between agriculture and tourism through greater representation of local products in restaurants which would have a direct impact on reducing the deficit in foreign trade;
  • reduce the cost analysis and the number of parameters needed to be analyzed;
  • amend the Law on Value Added Tax in order to introduce a single lower rate of VAT for products for human consumption (eggs, fish, fruits and vegetables, meat products) etc.

The meeting was led by the Board President Milutin Đuranović. In addition to Board members, representatives of the line ministry Danijela Stolica and Blagota Radulović took part in the discussion.