All serious EU countries maintain strategic reserves, which are of great importance, explains former Agriculture Minister Budimir Mugoša to Gradska.
A proposed law for the formation of oil reserves is already in parliamentary procedure, and the Government also plans to establish reserves for agricultural and food products, medicines, and medical supplies, projected to cost around EUR 22 million.
“Strategic reserves are essential in cases of market disruptions, natural disasters, wars… They also help influence the prices of agricultural products and ensure their preservation,” emphasizes Mugoša, citing the example of potatoes.
“We currently have an abnormally low potato price, around 30 cents. If we had strategic reserves, agricultural producers could store potatoes in these facilities and wait for prices to rise, rather than being forced to sell them now when prices are low. Therefore, establishing strategic reserves is crucial,” Mugoša asserts.
He recalls that last year, we saw potato and tomato prices at EUR 1.50 per kilogram, whereas this year, they are below 50 cents. According to Mugoša, strategic reserves would help smooth out these market anomalies.
While the Ministry of Economic Development states that part of the capital budget will be allocated for constructing special storage facilities to avoid renting from private owners, Mugoša argues this is unnecessary.
“There were strategic reserves in Montenegro before, and there are existing infrastructure facilities that could be used, so we don’t have to start from scratch. A public enterprise should be established to manage the storage, invest in training personnel, and secure significant working capital,” Mugoša says.
He points out that many state-owned enterprises or those owned by the capital city have certain capacities.
“The capital city has a cold storage facility in Mataguži for 10,000 tons that could be utilized. Private companies also have oversized storage capacities, so an adequate solution could be found within a public-private partnership,” Mugoša highlights.
Reminding that thanks to modern technology, agricultural products can be stored for a long time, Mugoša concludes that the sooner we establish strategic reserves, the better it will be for the state and farmers.
