Access to finance for organic producers in Serbia: demand side

Ljumović, Isidora and Viduka, Biljana and Cvijanović, Janko (2015) Access to finance for organic producers in Serbia: demand side. Ekonomika poljoprivrede : časopis Saveza poljoprivrednih inženjera i tehničara Jugoslavije, 62 (4). pp. 989-1002. ISSN 0352-3462

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Abstract

The aim of this paper is to identify the problems faced by organic producers when trying to access inance in Serbia. Previous research and experience show that demand for inancial services in the segment of organic producers is higher than the supply, and that neither commercial banks nor other inancial institutions are willing or able to meet inancial 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 speciically to obtain farm-level data in order to evaluate the shortcomings of the farm credit system. The study shows that access to inance 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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