Balkan drought highlights years of farm neglect – Serbia corn yield halved – Croatia corn ‘rare as gold’
By Daria Sito-Sucic, with additional reporting by Zoran Radosavljevic in Zagreb and Matt Robinson in Belgrade; Editing by Matt Robinson and Pravin Char
20 Aug 2012 KALESIJA, Bosnia (Reuters) – As crops wilt and die in the Balkans, farmers struck down by a particularly harsh drought this year are ruing the region’s failure to upgrade irrigation networks and invest in a long-term agricultural strategy. Hot, dry weather in eastern and southern Europe has piled pressure on world grain markets already reeling from huge drought damage in the United States. The toll in Bosnia, where surface soil temperatures in the south have hit 47 degrees Celsius (116 Fahrenheit), is estimated at almost $1 billion – a huge blow to a country where the farming sector accounts for 20 percent of employment and about 10 percent of economic output. The cost to neighboring Serbia, where agriculture last year accounted for about 12 percent of gross domestic product (GDP), is around $2 billion, and up to $250 million in Croatia, where yields have also been halved. “It’s a disaster,” said Zoltan Pinkert, a farmer in the fertile flatlands of Baranja in north-east Croatia. “Everything was top-notch, and then the drought came. We’ve had less than 10 percent of the rain compared to normal years, and the damage to corn crops is 100 percent.” The region is no stranger to drought and farmers usually get by until the next growing season. But producers in Bosnia say things have not been so bad since the end of the country’s 1992-95 war and are threatening to block major roads and border crossings from early September unless the government pays outstanding subsidies and acts to protect domestic production. The future looks bleak. Cash-strapped governments in the region, all facing recession, say the money is not there to invest in modern farming methods. […] Critics argue the problem has been years in the making. “We are paying for the lack of systematic agricultural policy over the past 20 or even 50 years,” said Damir Kovacic, agricultural marketing lecturer at Zagreb University. “We’re always surprised when the drought hits in the summer,” he said. The World Bank, which in May approved a $40 million loan to improve the irrigation system in Bosnia, said the countries of the Balkans had huge agricultural potential, but lacked the infrastructure and strategy. “Former Yugoslavia used to have one of the most advanced irrigation and drainage systems,” said Holger Kray, the World Bank’s lead officer for agriculture and rural development in Europe and Central Asia. “Unfortunately, these systems have degraded, eroded,” Kray told Reuters by telephone from Washington. “This is not only about functional budgetary shortages but also frequent turnover in the management of these systems.” Mate Brlosic, head of the Croatian Agriculture Chamber, said corn would be “as rare as gold” in Croatia this year. […] Vladimir Usorac, head of the farmers’ association in Bosnia’s Serb Republic, said the effects of bad harvests were cumulative. “This is the fourth consecutive year that agriculture has suffered enormous losses because of bad weather, and many producers will not have the means to start the production cycle next year,” he said. Experts estimate it would cost about $2.5 billion to overhaul irrigation networks in Serbia, the biggest agricultural producer in the former Yugoslavia. But there is little sign of such a long-term strategy emerging. The focus, instead, is on emergency remedies. In Serbia, where the corn yield is expected to be half the projected 7 million metric tons, trade officials last week called on the government to ban the export of grain, in particular corn, soybean, sunflower seed and wheat. […]
