Fresh Fruit & Vegetable Primary Production

Fresh Fruit & Vegetable Primary Production

Photo by UNDP Serbia, Vladimir Zivojinovic

Fresh Fruit & Vegetable Primary Production
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Build and operate the integrated fruit production facility with inputs such as land, CAPEX for production machinery, labor, and seeds and fertilizers. The targeted export markets include export to the European Union (EU), Central European Free Trade Agreement (CEFTA), European Free Trade Association (EFTA), and the Russian Federation supported by long-term contracts. Foreign experts should help in the establishment of cooperatives, in terms of the necessary knowledge and experience of organizing into cooperatives small and fragmented producers who lack negotiating power and respect the "3K" principle (quality, quantity, and continuity), which are needed to collect fruits from small producers in distribution centers. Such centers should have equipment for cooling and calibration with advanced technology. Production yields can be increased thought irrigation systems, and greenhouses add to the resistance and secureness of the crops in different weather conditions.

Expected Impact

Support sustainable farming, promote high-value markets, reduce undernourishment, and ensure food security.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
ROE: 10% - 15%
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
< USD 50 million
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Responsible Consumption and Production (SDG 12)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Industry, Innovation and Infrastructure (SDG 9) Reduced Inequalities (SDG 10)
Sector Sources
  • 1) Ministry of Agriculture, Forestry and Fisheries - Agriculture and rural development strategy of the Republic of Serbia for the period of 2014-2024, 2014. 2) Situation Of Rural Women In Serbia Report, 2017. 3) SEEDEV, Sectoral analysis of production and processing fruit in the Republic of Serbia, 2020. 4) Jefferson Institute, Fresh fruit and vegetables 2006, Competitiveness of Serbian economy, 2006. 5) Statistical Office of the Republic of Serbia, GDP, 2020. 6) The Global Food Security Index 2022, Country profile Serbia. 7) Country Profile SDG Serbia, 2022. 8) Keynote Address of Prime Minister Brnabic, 2020. 9) Ministry of Education, Science and Technological Development, Smart Specialization Strategy 2020 - 2027, 2021. 10) iceberg, About the Company, n.d. 11) Republic Press, Budimka Got Owner - ITN group, 2019. 12) MK Agri, MK group official website, n.d. 13) Agromedia, 2020. 14) New Investments Delta Agrar, 2014. 15) Chamber of Commerce of Serbia database 16) Peterhof Consulting stakeholder consultations online on the 6th of February, 2023. 17) Atos Fructum, n.d. 18) Statistical Office of the Republic of Serbia, Statistical Yearbook, 2022.
IOA Sources
  • 21) RARIS, Successful examples of Investments from Diaspora, n.d. 22) Statistical Office of the Republic of Serbia, Productive area, output and average yields of orchards, 2018. 23) Companies in fruit and vegetables - import-export, n.d. 24) Fruit, edible; figs, fresh or dried exports by country. Fruit, edible; figs, fresh or dried exports by country, 2019. 25) One Planet Network, SDG 12 HUB, country profiles, 2022. 26) Jon Clements, Extension Tree Fruit Specialist, UMass Amherst. Production Risk Management for Fruit Growers, n.d.,Risks%20...%205%205%29%20Human%20Resource%20Management%20Risks%3A 27) Milić Dušan, Dragan Galic, Veljko Vukoje, Possibilities for improvement of fruit production in Serbia, 2011. 28) Ministry of Construction, Transport and Infrastructure, The Spatial Plan of the Republic of Serbia from 2021 to 2035, 2021. 29) Planting of new productive perennial plantations of fruit trees and hops, 41/2021. 30) Ministry of Agriculture, Forestry and Water Management, National Program Of Rural Development For The Period 2022-2024, 2022. 31) Agros doo, n.d. 32) Survey on the structure of agricultural holdings, 2018. Fruit growing 33) Netherlands soft fruit solutions, 2020. 34) T.Hess & C Sutcliffe, The exposure of a fresh fruit and vegetable supply chain to global water-related risks, 2017. 35) Farmers opened a joint market to sell their products, 2023. 36) Rulebook on incentives for programs to improve competitiveness for investments in physical assets of agricultural holdings, 2021. 37) Rulebook on conditions and methods of exercising the right to credit support, 2017. 38) The Law about planting material of fruits, vines, and hops, 30/2010. 39) International Trade Administration |, Serbia - agricultural sectors, n.d. 40) Statistical Office of the Republic of Serbia, SDG Indicators, n.d.