November 2, 2018 - The disastrously bad condition of rural infrastructure is one of the key barriers to market development in agriculture and the rural economy in Montenegro, which for seven decades has no consistent and fruitful agrarian policy, adequate to the natural, market and socio-economic needs of the country.

This is stated in the book "Agriculture and Villages of Montenegro in the Transition Period 1990 - 2016", by Cedomir Marovic, former Director of the Agroeconomic Institute, Deputy Minister of Agriculture and Forestry and Director of Agrobank in Podgorica.

The book came out in an issue of "Vijesti" and represents the image of agriculture and rural space in Montenegro from 1918 to 1941, then the period of self-management and socialist development of the economic branch from 1945 to 1990, and finally, times of major system changes or popularly called transition times.

"In spite of the fact that the legacy of Montenegro, when it comes to the rural economy, was not the brightest one before the nineties, there were realistic expectations that some of the previous negative processes would be halted (rural exodus and devastation of the rural economy) and to embark on a process through which economically developed countries have turned this industry into one of the pillars of their economy. On the other hand, we should finally accept the expected changes that the rural environment is the natural habitat of man. Unfortunately, that did not happen, and villages continued to perish, currently existing with 75 to 80 percent of life and the economy, which is one of the most difficult contemporary and developmental problems," Marovic said.

In support of this allegation, he states that the percentage of agricultural land usage in 1989 was 36 percent, and in 2016 it fell to five percent, according to Monstat. The number of farms in 1991 amounted to 60,043, while in 2016 this number was 43,791 farms or 27 percent less.

Marovic states that the lack of concept for functioning the market for agri-food products as a multi-decennial problem in this sector has led to the fact that farmers are left to regulate the market according to the laws of competitiveness and their economic interests, which is the most straightforward to undermine the concept of every successful agricultural production and producer standards.

"The low level of productivity in livestock production, as a result of a high technological decline, is shown by the most striking fact that the average milk production per cow in Montenegro in 2016 was 2,803 liters per year, while the same product in Western European countries ranged 6,500 liters. In Canada, the annual milk production per cow is 9,000 liters of milk, while the same production per cow in Israel is 11,140 liters. Finally, farm production in cattle breeding as the most important agricultural branch is not competitive on the local market, let alone on the international market, which is why the effort and the funds invested do not bring farms and state the results that would be realistic to expect."

Čedomir Marović PHOTO:

He points out that the Strategy for the Development of Agriculture and Rural Areas for 2015-2020 is abundant with the wrong and incomplete view of ways to address major problems in the current production and development sector, whose solutions should be positioned as a firm policy and operational principle on quite different grounds and for a longer period of time. 

"The disadvantages have come to the fore in the current monocentric concept of rural economic development as the only choice, where the direction of significant investment funds has lost the power of economic progress, which confirms the extremely weak position of agricultural households in the reproduction system, and on the other side this unfavorable condition is most directly reflected in the weak increase in food production and export. Particularly worth mentioning is the lack of projects of integral development of food production and rural tourism and other activities, on for such predicted attractive locations. 

On the other hand, as Marovic puts it, for almost three decades they have been left out of the reach of the current development policy, science and profession, the largest and most widespread natural resources such as: Bjelopavlići plain, Lješkopolje, Crmnica field, Ulcinj and Vladimirsko field, coastal zone of Skadar Lake with Zeta, Mrčevo field, Tivat field, Sutorina, Grahovo field, Lim valley, Vraneška valley, Gusinje field, Nikšic parish, Krnovo, Lukavica, Kosanica, Durmitor area, Bjelasica, Komovi. Investments in the farm production of milk and meat are in 90% of cases (estimates because there are no official data) directed towards persons who do not have any professional education for successful employment. Because of this situation, it is logical that existing production does not have the expected economic results and because of which such farms are most often decaying. The fact that the number of flocks of cattle in 1989 compared to 2016 is more than halved. 

Marovic states that the meat processing industry is living on imported raw materials, although there are some extraordinary conditions here to compensate for the import with our own production. "The number of vineyards in 1989 was 17,190,720, while in 2016 this number was 10,552,905 grapevines. As a result of prominent and other problems, total production balances compared to 1989 in relation to 2016 are more than halved. It is an assessment because there is no official data and, finally, it should be kept in mind that Montenegro is in the second last or last place of the list of rurally developed countries in Europe."

Text by Dejan Perunicic, on November 1st 2018, read more at Vijesti

November 2, 2018 - The company “Plantaze” was officially able to submit a request to the Rospotrebnadzor to suspend the temporary ban of “Plantaze” wines on Russia's territory on Monday, said the Production Manager of “Plantaze” Milan Milutinović.

Rospotrebnadzor is the Russian control and inspection body in the area of trade and consumer rights protection, which, as Milutinovic states, has refused, without any written explanation, to receive the Montenegrin company's request through its archive. Russian courts refuted the appeal in April and May on the decision to temporarily ban the import of “Plantaze” wines to Russia.

"Given that the actions against our main distributor and sub-distributor are initiated on the alleged defect of our products, ending in their favor, their outcomes are going in our favor, and we have been advised by the attorney-in-law team from Moscow to proceed with the proceeding so that, with their mediation, by official letter to the competent authority of Russia's Rospotrebnadzor, requesting to terminate the temporary ban on imports of our products into the territory of the Russian Federation," Milutinović said to “Pobjeda”.

“Plantaze” has invited representatives of Rospotrebnadzor so that their specialists will visit the production facilities of “Plantaze” in Podgorica in order to immediately assure the quality of these products.

"We point out that the competent Rospotrebnadzor has the legal obligation to respond to the request within 30 working days from the day of delivery," Milutinović pointed out.

He reminded that three state-administrative proceedings were initiated in front of the competent state authorities in Moscow on the occasion of the control of the correctness of the wine from “Plantaze”.

"The decision to temporarily ban the import of our products on the territory of the Russian Federation was made on 26^th April last year, and the decision was delivered only at the end of January this year, so our attorneys have only been able to appeal after that moment," explained Milutinović.

He reminded that “Plantaze” received a notice at the end of February last year from the state authority responsible for control and inspection activities in the area of trade and consumer protection rights of Rospotrebnadzoror, that their wines, or series of certain types of wine, sampled, on the basis, as stated, anonymously submitted applications have an elevated level higher than the permitted pesticide of metalaxyl and plastic particles of diphthalate and that, as they stated, such wine is detrimental and improper, and that they will have to withdraw it from the Russian market.

Text by Pobjeda, on November 2nd 2018, read more at CdM

November 2, 2018 - Montenegro has been and will be a gathering place for valuable, smart and good-natured people looking for answers to the challenges of the modern era not only in the field of agriculture but also in everything else, said Deputy Prime Minister and Minister of Agriculture and Rural Development Milutin Simović.

Speaking at an international conference on agriculture, the Green Room session 2018 in Podgorica, he said that the key expectation that upsets us all here and the others who come up with this topic is how to produce as much food as possible.

"Another important issue and expectation is that the food meets the basic standards of health security and quality. Third, how to preserve natural resources, how to use them in a sustainable way, to preserve biodiversity and genetic resources in this production and development and intensification of production. The next expectation is to respond to the challenges of climate change, we are not about to think and talk about the planet, but what we feel every day, and it seems to me that no sector can relate to this except the agriculture as a kind of production of food in the open," he said.

According to him, it is also important to make village life have more quality and be more meaningful, to provide a contemporary concept of village development, where not only agriculture is involved, but also diversification of activities in the village through agritourism, craftsmanship and other activities.

"How to give answers to global challenges in relation to many diseases and pests that do not know the boundaries. The next is how to develop a modern 20th century agriculture, while preserving tradition and heritage. I think there is a special chance and the advantage of small agriculture such as Montenegro's. And the ultimate expectation from this conference is to make the best possible combination of science and professions to make valuable manufacturers, processors and entrepreneurs increase their competitiveness, productivity, adopt new standards and improve market position," said Simovic.

Text by CdM, on November 1st 2018, read more at CdM

November 2, 2018 - The promotion of the tourism industry, establishing airlines to Tivat and an Info Center about Montenegro, education and participation in fairs and the cooperation of the chambers of commerce, are the most important topics from the meeting held between the representatives of the Municipality of Tivat headed by President Dr. Siniša Kusovac and the delegation of the Czech Chamber of Commerce, led by Ambassador Karel Urban and President of the Chamber Jiri Nestaval.

Director of Czech Airports Pardubice Hana Šmejkalova proposed establishing charter flights with “Smart Wings” and “Montenegro Airlines” during the summer and emphasized the readiness for very close cooperation and enhanced joint marketing.

"The Czechs want to continue cooperation with Montenegro, especially in the field of tourism, but also in other spheres, and this meeting represents an initial step in that direction," said Ambassador Urban.

"Tourism and investments are the most important determinants of the development of the Tivat Municipality and Montenegro in general, and the large investments realized in the territory of Tivat have contributed to the fact that this municipality is present on the tourist map as an attractive nautical and tourist destination. In this positioning, setting up a good airline connection plays a big and important role," said Mayor Siniša Kusovac, as reported by his cabinet.

The meeting was also attended by representatives of Tivat Airport, the Faculty of Mediterranean Business Studies, as well as the largest investment projects in Montenegro - Porto Montenegro and Lustica Development. The President of the Czech Chamber of Commerce, Jiri Nestaval, conveyed the interest of Czech investors for arrangements in Montenegro and proposed the establishment of an Info Center about Montenegro within the Czech Chamber of commerce for the promotion of tourism potential, history, and culture.

The student exchange between the two countries in the area of education and training in tourism, the hotel industry and gastronomy, as well as cooperation through IPA projects, were proposed at the meeting. A memorandum on cooperation between Tivat and one of the Czech cities was agreed to be signed in the future.

Text by S.L., on November 1st, 2018, read more at Boka news

November 1, 2018 - An investor from Russia is interested in Hipotekarna Bank, but there is also an interest from Israel, said Central Bank Governor Radoje Zugic, stressing that he will soon know what was decided on this issue.

He said that it does not matter how much someone is paying for the bank, but to protect all current assets through the resources of a potential investor.

"There is interest, but it must have two conditions - investor reputations and adequate exports of clean money and enough cash flow to provide huge deposits that we have from a sufficient source of funds of potential investors," said Žugić at a press conference organized for the occasion of “Week of Saving”.

CBMN, he added, performs daily monitoring of two banks due to the deterioration of liquidity and solvency parameters, and will try to recover them. Although these banks are not systemically important, they will only get specific information about whether there is a risk that some of them will go bankrupt.

"The Deposit Protection Fund has enough coverage. If the worst-case scenario takes place, and I hope that it will not, there will be no problem paying off all guaranteed deposits," said Zugic.

Commenting on interest rates, the governor said that leaders of the commercial banks are demanding that they are not transparent.

"CBMN has decided to transparently display each bank at interest rate levels in order to have a clear client relation in the level of interest rates," Zugic said.

Text by Dnevne novine on November 1st, 2018, read more at CdM

Blazo Djukanovic, son of Montenegrin President Milo Djukanovic, expanded his interest in business into the information technology sphere - at the end of June, he became the co-founder of the company “Kodio” from Podgorica.

October 31, 2018 - During November, the 3D seismic exploration of oil and gas will be launched in the seabed, announced the Hydrocarbon Directorate. The company Šaravoter with its "Polar empress" ship will do the underwater recording.

October 31, 2018 - Based on the last signed contracts for leasing the state land in Ulcinj, Briska gora, Vranovici in Kotor and Golubovci in Podgorica, a total of EUR 9.2 million will be invested and more than 40 workers will be employed, said the Ministry of Agriculture and Rural Development.

October 30, 2018 - The Head of the Civilian Movement URA Luka Rakcevic said there are many reasons to put a moratorium on the construction of the former Morača barracks and Njegoš's park.