Access to finance for organic producers in Serbia: Demand side

Abstract

The aim of this paper is to identify the problems faced by organic producers when trying to access finance in Serbia. Previous research and experience show that demand for financial services in the segment of organic producers is higher than the supply, and that neither commercial banks nor other financial institutions are willing or able to meet financial 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 specifically to obtain farm-level data in order to evaluate the shortcomings of the farm credit system. The study shows that access to finance is one of the biggest constraints faced by organic producers and that the existing mechanisms for agricultural finding are not adequate.