An Investment That Pays Off for Up to 35 Years

Professor Zoran Keserović from the Faculty of Agriculture in Novi Sad explains in an interview with Biznis.rs that these areas are predominantly extensive plantations. The most modern, intensive plantations are concentrated in Vojvodina, particularly around Pančevo and Senta.

Although walnut production in Serbia has declined since 2015, Keserović believes that investing in walnut orchards, especially newer varieties, remains a long-term, profitable venture that can generate income for the next three decades.

"Walnut production in Serbia ranged from 16,000 tons in 2014 to just 7,540 tons in 2021. Over the past four years, the average yield was around 9,440 tons," he notes.

To boost productivity, Keserović emphasizes the importance of establishing modern plantations using high-yielding varieties.

“The most productive cultivars include those with lateral bearing characteristics such as Chandler, Lara, Ferne, Frankett, Pedro, and Tyular. Growers, especially those establishing new orchards, should pay special attention to the quality of planting material and canopy training, as walnut trees are highly sensitive, particularly to bacteriosis,” warns Keserović.

The estimated investment for one hectare of modern walnut orchard, including irrigation systems, ranges between €11,000 and €13,000.

"Compared to apples or blueberries, which require investments of €40,000 to €70,000 per hectare, this is relatively low," he explains.

According to Keserović, production costs are typically covered by the fourth or fifth year, with full return on investment expected between the eighth and tenth year. With proper care, walnut orchards can remain productive for 25 to 35 years.

Due to insufficient domestic supply, Serbia continues to import walnuts. In Belgrade, the retail price of shelled walnuts exceeds 1,200 dinars per kilogram. At the producer level, the price is about €5 per kilogram for in-shell walnuts and €8.50-10 for shelled ones.

Patience Brings Profit

Milan Brkljač, co-owner of one of Serbia’s largest walnut orchards, "Siora", told Biznis.rs that the company currently cultivates 50 hectares of walnuts and plans further expansion in the next two years. Their plantation exclusively uses American and French varieties such as Chandler, Lara, and Frankett, eschewing local varieties.

Though the orchard has not yet reached full yield, Brkljač says that in its sixth year, it is expected to produce a modest commercial yield of 600 kilograms to one ton per hectare. In full maturity, the yield should increase to three to five tons.

"Anyone considering walnut cultivation should know that the first six to seven years require continuous investment with no income. But for those with patience and a passion for fruit growing and agriculture, this is a highly profitable investment, with returns becoming evident after the eighth or ninth year," he says.

Brkljač explains that their walnuts fall into the premium product category. While he sees potential for export due to the limited price tolerance of the domestic market, he remains open to local partnerships.

"If we can reach an agreement with major domestic distributors, we’d be happy to sell locally. However, the Western market is more attractive, as prices there are two to three times higher. Our current product line also includes walnut brandy, which we’ve already started distributing within Serbia," he adds.

Cost Breakdown

According to Brkljač, establishing a walnut orchard requires 260 to 270 seedlings per hectare, priced at approximately €15 each. The setup also includes mechanical digging and planting, along with a watering system that costs €2,500 per hectare, excluding water infrastructure, which may incur additional expenses.

“Fertilization and plant protection cost about €500 to €700 per hectare in the first two years, then increase substantially. Mechanization is another key consideration, whether owned or rented, as it significantly impacts overall maintenance costs,” Brkljač explains.