Serb meat sector counts cost of Croatia border closure

A spokesperson for Serbia’s customs administration told GlobalMeatNews that once the closure was lifted on 25 September, 886 blockaded lorries crossed from Serbia to Croatia. Of these vehicles, 426 had Turkish licence plates, 228 Serbian, 144 Bulgarian, and 88 Macedonian – “all carrying perishable goods, mostly meat”​, largely pork, beef and chicken and related products.

Spokesperson Jelena Rašković said companies were trying to calculate the total losses caused through spoilage, goods destruction, contract losses and financial penalties by Croatia closing its borders.

The closure was done to stem the flow of Syrian refugees into the EU via its territory after Hungary closed its border with Serbia for the same reason. The closure created a 20km-long convoy of lorries on the E70 highway near the key Batrovci border crossing.

Seeking compensation​

Some carriers sought alternative routes via Hungary and Bosnia & Herzegovina, but most, especially those with perishable goods, remained at the border, hoping that the crisis would be resolved quickly. It was not and Vesna Jeličić, advisor to the president of the Serbian Chamber of Commerce, said her organisation would be seeking compensation via the courts.

“The Serbian Chamber of Commerce is still receiving calls from numerous manufacturers and carriers who have suffered damage which, according to initial reports, is reaching €30 million in total,​”​ said Jeličić. “That is why the Serbian Chamber of Commerce is considering a class action lawsuit against the Croatian government.”​

But valuing the damage would be tough, said Veljko Premate, president of Serbia’s National Association of Freight Forwarding Companies and Agents, who added: “Some products are paid in advance and they are owned by the purchaser. For some products, carriers will pay for the damage because, according to their contracts, they own the goods until these are delivered to the new owner.”​

'Biggest damage'​

In addition, some contracts, say the manufacturers, will be paid only after delivery, he stressed, adding: “However, the biggest damage is that everyone loses reputation as a business partner and any future co-operation is compromised.”​

The biggest meat companies in Serbia include Matijević, of Novi Sad; Carnex, of Vrbas; Neoplanta, of Novi Sad; Yuhor, in Jagodina; and Topola, of Bačka Topola.

The Serb meat industry exported more than it imported in the first eight months of 2015. According to the Statistical Office of the Republic of Serbia, receipts from exported fresh meat and meat products amounted to €63.8 million during that time, while imports amounted to €50.4m.