ACCESS TO FINANCE FOR ORGANIC PRODUCERS IN SERBIA: DEMAND SIDE
DOI:
https://doi.org/10.5937/ekoPolj1504989LKeywords:
Access to fnance, organic production, bank loan.Abstract
The aim of this paper is to identify the problems faced by organic producers when trying to access fnance in Serbia. Previous research and experience show that demand for fnancial services in the segment of organic producers is higher than the supply, and that neither commercial banks nor other fnancial institutions are willing or able to meet fnancial needs within the value chain. Due to such situation, agricultural producers are stuck in the "missing middle" segment which lacks funding sources. This study uses questionnaires designed specifcally to obtain farm-level data in order to evaluate the shortcomings of the farm credit system. The study shows that access to fnance is one of the biggest constraints faced by organic producers and that the existing mechanisms for agricultural funding are not adequate.
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References
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19. USAID (2012): Financing the Growth of Small and Medium Sized Enterprises Critical Issues and Recommendations for Serbia, Belgrade, Serbia, (available at http://www.bep.rs/documents/c3/FINANCING%20THE%20GROWTH%20OF%20SME%20-%20Critical%20Issues%20and%20Recommendations.pdf, last viewed on 08.07.2015).
20. USAID (2013): Business Enabling Project - Agricultural Finance in Serbia – Status and Recommendations, Belgrade, Serbia, (available at http://www.policycafe.rs/documents/fnancial/research-and-publications/commodity-marketdevelopment/Agricultural%20Finance%20in%20Serbia.pdf, last viewed on 10.07.2015).
2. Blancard, S., Boussemart,J. P., Briec, W., Kerstens, K. (2006): Short- and LongRun Credit Constraints in French Agriculture: A Directional Distance Function Framework Using Expenditure-Constrained Proft Functions, American Journal of Agricultural Economics Vol. 88, No. 2, pp. 351–364.
3. Ciaian, P., Falkowski J., dArtis, K. (2012): Access to credit, factor allocation and farm productivity: Evidence from the CEE transition economies, Agricultural Finance Review, Vol. 72, No.1, pp. 22-47.
4. Ciaian, P., Swinnen, J. F. M. (2009): Credit Market Imperfections and the Distribution of Policy Rents, American Journal of Agricultural Economics Vol. 91, No. 4, pp. 1124-1139.
5. Crowder, D. W., Reganold, J. P. (2015): Financial competitiveness of organic agriculture on a global scale, Proceedings of the National Academy of Sciences, Vol. 112, No.24, pp. 7611-7616.
6. Đokić, I., Đokić, N., Pavlović, N., Žnideršić-Kovač, R. (2014): Promocija organske hrane u Srbiji - implikacije istraživanja profla potrošača organske hrane, Ekonomika poljoprivrede, Vol. 61, No. 4, pp. 837-849.
7. Gjosheva-Kovachevikj, M., Kovachev, G., Risteski, H. (2013): Conditions and Perspectives of fnancial lending in Macedonian Agriculture and rural Development, in Book of Proceedings No. Fourth International Agronomic Symposium "Agrosym 2013", pp. 1137-1142, University of East Sarajevo, Republic of Srpska, Bosnia and Herzegovina
8. Jolović, A., Njegovan, Z., Čavlin, M. (2014): Finansiranje poljoprivrede u Srbiji - stanje i perspektive, Ekonomika poljoprivrede, Vol. 61, No. 1, pp. 127-137.
9. Jovanović, M, Despotović, A. (2012): Analiza socio-ekonomskih uslova za bavljenje organskom proizvodnjom u Crnoj Gori, Ekonomika poljoprivrede, Vol. 59, No. 2, pp. 207-216.
10. Latruffe, L. (2005): The impact of credit market imperfections on farm investment in Poland, Post-Communist Economies Vol. 17 No. 3, pp. 349-362.
11. Latruffe, L., Davidova, S., Douarin, E., Gorton, M. (2010): Farm expansion in Lithuania after accession to the EU: The role of CAP payments in alleviating potential credit constraints, Europe-Asia Studies Vol. 62, No. 2, pp. 351-365.
12. Ljumović, I., Lazić, J., Vesić, A. (2015): Specifčnosti fnansiranja u preduzetništvu, Ekonomski institut, Beograd, Srbija.
13. Marinković, S., Ljumović, I. (2010): Socijalna dimenzija pristupačnosti I kvaliteta bankarskih usluga u Republici Srbiji, Ekonomika preduzeća, Vol. 58, No. 3-4, pp. 149-159.
14. National Association Serbia Organica. (2014): Organic Agriculture in Serbia At a Glance 2014, Belgrade, Serbia, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, (available at: http://www.terras.org.rs/terras/projekti/nesortirano/vesti%202014/slike/Organic%20agriculture%20in%20Serbia-%20At%20a%20Glance%202014.pdf, last viewed 27.07.2015.).
15. OECD - Centre For Entrepreneurship, SMES and Local Developement. (2013): Financing SMEs And Entrepreneurs 2013: An OECD Scoreboard-Final Report, Paris, France, (available at: http://www.oecd.org/offcialdocuments/publicdisplaydocumentpdf/?cote=CFE/SME(2012)12/FINAL&docLanguage=En, last viewed 21.07.2015.).
16. Paraušić, V., Cvijanović, J.M. (2014): Konkurentnost agroprivrede Srbije, Institut za ekonomiku poljoprivrede, Beograd, Srbija.
17. Swinnen, J. F. M. (2007): The dynamics of vertical coordination in agri-food supply chains in transition countries ch. No. 4, pp. 42-58 in Global Supply Chains, Standards and the Poor, CABI, Oxon, Sao Paolo, Brazil.
18. Swinnen, J. F.M., Gow, H. R. (1999): Agricultural credit problems and policies during the transition to a market economy in Central and Eastern Europe, Food Policy Vol. 24, No.1, pp. 21-47.
19. USAID (2012): Financing the Growth of Small and Medium Sized Enterprises Critical Issues and Recommendations for Serbia, Belgrade, Serbia, (available at http://www.bep.rs/documents/c3/FINANCING%20THE%20GROWTH%20OF%20SME%20-%20Critical%20Issues%20and%20Recommendations.pdf, last viewed on 08.07.2015).
20. USAID (2013): Business Enabling Project - Agricultural Finance in Serbia – Status and Recommendations, Belgrade, Serbia, (available at http://www.policycafe.rs/documents/fnancial/research-and-publications/commodity-marketdevelopment/Agricultural%20Finance%20in%20Serbia.pdf, last viewed on 10.07.2015).
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Published
2015-12-31
How to Cite
Ljumović, I., Viduka, B., & Cvijanović, J. M. (2015). ACCESS TO FINANCE FOR ORGANIC PRODUCERS IN SERBIA: DEMAND SIDE. Ekonomika Poljoprivrede, 62(4), 989–1002. https://doi.org/10.5937/ekoPolj1504989L
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Original scientific papers
