Djordje Ljubojevic, Head of Sales

Sirogojno Company

Sirogojno Company is one of the leading companies in Serbia in the food industry; could you tell us more about your company?

Our company was founded in 1991 and has transformed from a pure trading to a production company over the past 25 years. It is a family owned and run business that produces a wide range of frozen and dried fruit. Our customers are large retailers or fruit processing industries in around the world in 35 countries, including the USA, Canada, Japan, India, Australia and of course most EU members. In 2015 the business generated around 20 million Euro in revenues and we expect a 10% growth for the current year. At the moment we employ around 180 people in three factories in western Serbia.

Your company is exporting to many markets, some challenging ones, what was a key of your success on the international market?

The key is to be able to adopt to the market demands. Take Japan for example – the requirements for food exporters to this market are far higher than for any other country. In order to be able to sell your product there you need to understand that way Japanese consumers think. Only that way you will be able to implement some of the high standards in your production that some Europeans might consider unnecessary. 

In your opinion what are the strongest points of Serbia, in terms of investing and operating in the food business?

Serbia has a lot of excellent, unused land for potential growing of any kinds of fruit and vegetables. There are many opportunities to start new plantations of a wide variety of plants. Furthermore, Serbia is in the heart of Europe and has great access to many large markets, physically as well as economically. Besides the free trade agreement with the EU, your goods will also find their way to Russia duty free.

You are exhibiting at various international fairs throughout the year, how is Serbian fruit and vegetables acknowledged from the international customers/buyers?  (what fairs you are exhibiting at in the next period etc.)

Fairs are one of our biggest marketing tools. When we first started visiting fairs in the mid 2000’s, a considerable help came from former SIEPA which used to organize affordable joint stands for small companies from Serbia. These stands were basically an incubator for many companies that used this opportunity to grow and that later started exhibiting at large shows on their own. In recent years, RAS is organizing these joint stands together with the Chamber of Commerce and I personally think that this is the only chance for many small companies from Serbia to properly present themselves to the world. Then maybe one day they will have the opportunity to exhibit on their own. As for our company, this year we had the PLMA in Amsterdam – a show only for the Private Label sector which is our most important clientele. Later this year we will exhibit at the SIAL show in Paris, one of the biggest food shows in the world. It will be our fourth independent participation at this exhibition.

Serbia is the largest producer of raspberry in the world, in 2015, can you tell us more about the quality of Serbian raspberry and what are the possibilities for growth and export?

In 2015 Serbia had a record year in terms of volume of raspberries, 110.000 thousand metric tons, although may say it might even be more than that. Our country has excellent conditions for raspberry cultivation, this is why there are so many growers and hence the volumes. Most of the raspberries grown in Serbia are of the Willamette variety, originally from the US. These raspberries have a great, full taste, a nice appearance and therefore are popular among retail and industrial customers alike. Unfortunately the level of production in Serbia is still very low, even though the country has been among the top worlds producers for decades. The yields per acre are low and very few growers are in the position to do something about it. The plants on Serbian fields are considerably old, they need to be renewed in order to get satisfying yields and quality. In addition to that, only 4% of the fields are insured, less than that have a system for irrigation and a very few have anti hail nets. All of this leads to the fact that we are pretty much left unguarded to the changing weather conditions and financial losses that the farmers face in times of unstable weather conditions.  In addition to that, very little is done to work on domesticated varieties in order to cultivate plants that could be optimal to our conditions. This could further drive volumes up in production in a similar way it did for Poland some years ago.

Serbia has a long tradition of agriculture and food industry. What would you say are the main advantages and opportunities for companies operating in this sector in Serbia? 

The biggest advantage is the easy access to good quality raw materials. Besides that, Serbia has a very unique position being able to enter both western and eastern markets easily, despite these politically challenging times in the world today. When we speak about opportunities it is worth mentioning that his sector is undergoing some major regulation changes as we speak. The two biggest problems, grey economy and the need for food safety, were identified by the authorities as potential threats to a healthy development and regulations for a systematical change were presented. The future of the sector will rely on the implementation of these rules. 

Is your success on the premium markets due to the quality of raw materials from Serbia? What would be the ways to sustain high quality of raw materials and what are the opportunities to enhance cooperation with suppliers?

The success on premium markets is a result of constant work and improvement. Of course, it is also a favorable to sell products of great quality but the raw material itself is nothing if it is not processed in the right way and marketed properly.

Serbian fruit and vegetables are recognized worldwide of high quality, what is

the secret to that? What type of certificates do you implement in order to keep

constant quality of your products?

Serbia is a large producer of fruit and vegetables. Of course most of the goods   produced are of superb quality. But as mentioned in an answer above, the good raw material is irrelevant if it’s not processed in the right way. That is why we have   implemented the highest standards in our production. In today’s market where   everything is buy and sell, it is very easy to get access to a certificate which can   be a great wall decoration. The key is to process according to all of the rules and   regulations set by a certificate.

What are the plans of Sirogojno Company for the future of your business in Serbia?

Our plans are to diversify our production with other, related products. Of course we will continue to develop further the existing lines and drive volumes on those as well as to enter new markets worldwide.

What would be your advice to young entrepreneur planning to start their own business in agriculture in Serbia?

Go into primary production. Find a good partner that will buy all of the product you produce and let them teach you what the market demands and what you need to grow. Serbia has so many untouched fields that are optimal for a wide variety of cultivation that it is a sin not to start growing your food there yourself.