Serbia's Drought Hits Corn and Soybean Yields Hard

A severe drought in Serbia has decimated corn and soybean yields, particularly in Vojvodina, the country's key agricultural region. According to Zarko Galetin, an agricultural economist, the weaker harvest is already causing higher feed costs, which could eventually drive up prices for meat, meat products, and milk.

Corn, a main component of animal feed, has been hit hardest by the drought, while soybean yields have also fallen significantly below average. Sunflower has fared better, but its yields are still expected to decline from previous years. Domestic sunflower prices currently stand at around 52 dinars/kg, roughly in line with last year's level.

The impact of lower corn and soybean supplies is expected to ripple through the production chain, driving up feed prices first, which will increase costs for livestock producers. The lag between higher feed costs and increased retail meat prices will likely be noticeable as farmers initially rely on existing stocks and contracts.