Cherries from Serbia: Steady Growth in the European Market

Published 2020년 3월 9일

Harvest for Serbian sour cherries is expected to be optimal for the 2019/2020 season and Serbia is looking to expand its production. Demand has been rising in the European market and there is also potential to expand on the Chinese market due to the US-China Trade war.

Serbia is a growing source for high-quality sour cherries. Apart from Spain, Serbian cherries are currently the first batch of products to hit the market in Europe this season. Demand for Serbian cherries is expected to increase in 2019/2020 as growers met with good production conditions while other European producers experienced decreases in yield.

Expected Increase in European Demand for 2019/2020

Harvest of Serbian cherries is promising for 2019/2020 as the cherries are expected to have a good Brix value, indicating high levels of sugar, thanks to favorable weather conditions for production such as optimal temperature and ample water supply. This is expected to bring higher European demand as production within the EU is estimated to drop by more than 20% this season, to 648K tons, due to frost and low temperatures that affected production in Poland and Italy.

Germany, Austria, and Russia especially are among the biggest export destinations for cherries produced in Serbia and the country is the second-biggest sour cherry producer in Europe after Poland, producing approximately 80-90K metric tons annually. Production has been steadily growing during the last decade, even reaching 100K metric tons during bumper years. German demand, which accounts for almost 40% of Polish exports, is expected to rise the most as Polish supplies decrease.

Steady Rise in European Demand in Recent Years

Thousands of hectares of land have been planted with sweet and sour cherry trees over the past few years, as Serbia’s export potential to Western European and Russian markets rises. The production climate in Serbia is especially optimal for cherry and plum trees and the demand for both fresh and frozen Serbian cherries from Europe is constantly increasing, especially as sour cherry production in Germany is declining.

Sour cherries are one of the most important Serbian fruit species for export. The Oblacinska cherry, a small type of cherry named after the region in Serbia where it was first cultivated, and the Cigancica variety account for more than 85% of Serbian cherry production. Oblacinska cherries, in particular, have gained popularity across the world due to its unique balance of sourness and sweetness, caused by optimal soil and climate conditions. Producers of the Oblacinska variety are even seeking to gain a geographical indication (GI) status which would make its position more prominent in the international market.

Serbia Seeks to Increase Production

Serbia’s cherry production capacity is expected to increase to a steady production of 100K metric tons yearly, as the newly built orchards start to become productive. This is in-line with the country’s efforts to improve its agricultural productivity. From 2015 to 2020, Serbia has been receiving approximately USD 200 million in funding from the EU specifically for agricultural and rural development. The aim of the program is to improve the agricultural sector and increase Serbia’s competitiveness in Europe. Agriculture accounts for over 20% of employment in Serbia and 99% of agricultural holdings are operated by family farms.

Furthermore, in order to be more quality-focused and environmentally friendly, Serbia has put effort into planting smaller sized trees and establishing high-density orchards. By applying intensive growing techniques and having shorter crown sizes, harvesting and pruning are able to be done more efficiently as well.

Potential Increase in Demand from the Chinese Market

Demand for Serbian cherries is expected to rise in Asian markets as well, as Chinese cherry production struggles to meet rapidly-growing domestic demand despite the expansion of thousands of new acres.

Furthermore, tensions surrounding the tariff war between the US and China are causing Chinese importers to look for import markets other than the US, its biggest source of cherries. Currently, even without the added tariffs, a pound of sweet cherry costs about USD 12.00, which is on the high side for Chinese consumers.

Once the extra tariffs are added, demand for US cherries is expected to be even smaller. While Serbian cherry exports are relatively small in terms of worldwide export volume, its quality, as well as growing prominence in the world market, acts as a good potential market for China to increase its imports from.