Problems for food industry due to fees in K&M – Drop of 10% recorded in November 2018

Due to the additional fees on goods from central Serbia that Pristina has implemented, a drop of 10% was recorded in the food industry in November, MAT’s economists announced today.

The area therefore became the main factor of the y-o-y stagnation of manufacturing in November and the lowering of the projected growth of manufacturing in 2018 to far below 3%.

MAT economist Stojan Stamenkovic said that the total deliveries to K&M from central Serbia had amounted to EUR 410 million in the January-November period.

He specified that the delivery had amounted to EUR 42.2 million in October, whereas in November, after the fees were implemented, it had dropped to EUR 17.2 million.

Stamenkovic said that the deliveries, counting only the food industry, had amounted to EUR 7.7 million in October and only EUR 3.2 million in November.

As the 100% fees now pertain to the good of foreign producers coming from Serbia as well, the effect is expected to increase until the deliveries stop entirely. It remains to be seen whether a small part of it can be compensated for through the export to other countries and to what extent, Stamenkovic said.

MAT

Stojan Stamenkovic

fees in K&M

food industry

food industry losses due to fees in K&M