The Government of the Republic of Serbia recently adopted a Decree on Additional Requirements for Placing on the Market Products Containing Palm Oil, Palm Fat, or Other Vegetable Oils and Fats ("Official Gazette of RS", No. 47/2025), which entered into force on 7 June 2025 (“the Decree”).
The purpose of this Decree is to protect the interests of citizens, specifically consumers, through clear visual labelling of products that appear to resemble and/or suggest dairy products, but in fact contain vegetable fats instead of milk fat. This allows the consumer to be informed that the product they are purchasing does not contain natural dairy fat, thus eliminating the possibility of deceptive business practices and ensuring the consumer’s right to information. In addition, this measure protects domestic production and the purchase of milk and dairy raw materials from small producers.
The Decree establishes additional requirements that must be fulfilled when placing on the market products containing palm oil, palm fat, or other vegetable oils and fats with a dairy component.
Entities subject to the Decree
The Decree defines a business operator as a legal entity or entrepreneur responsible for wholesale, retail, import, distance selling, sale via food vending machines, or operations in public food service establishments.
With this Decree, the types of business operators are further specified, elaborating on the provisions of the Food Safety Law. It is important to note that the Decree, unlike the Food Safety Law, defines food service establishments more broadly, stating that these include: restaurants, bakeries, pizzerias, fast food outlets, canteens, catering services, hospitals, kindergartens, schools, social welfare institutions, and other facilities where food is prepared and delivered to the final consumer.
Products subject to the Decree
Products containing palm oil, palm fat, or other vegetable oils and fats, within the meaning of the Decree, are products with palm oil, palm fat, or other vegetable oils and fats and with a dairy component, such as:
- dairy products (cheese, whey, cream, pasteurized milk, milk proteins, butter, etc.),
- bakery and confectionery products (filled pastries, burek, pie, puff pastry and fermented puff pastry, cakes),
- spreads, margarine-based spreads and related products.
Obligations of business operators
Entities placing the above-mentioned products on the market must label them with a mark that includes both a graphic and textual component, which together form an integral visual identity. The design of the label is attached to the Decree to facilitate labeling for operators.
Label placement:
- for packaged products: on the main visual field of the product and immediately next to the displayed product or next to the price;
- for unpackaged products: immediately next to the displayed product or next to the price.
In addition, operators are required to maintain the temperature in refrigerated display units within the range of 0°C to 7°C and to display the mentioned products separately from dairy products in retail stores.
Implementation and penalties
It should be noted that the start of application is postponed until 1 August 2025, from which date all entities must have clear labels on products and must separate them on shelves from dairy products, which is a very short period for business adjustment. Of course, entities are allowed to start labelling and displaying such products even before that date.
Failure to comply with the provisions constitutes an economic offense for legal entities, punishable by a fine ranging from 300,000 to 3,000,000 dinars (additionally, the fine for the responsible person ranges from 50,000 to 200,000 dinars), while for entrepreneurs the violation is classified as a misdemeanor, with a fine ranging from 250,000 to 500,000 dinars.
Conclusion
The European Union has long been working on regulating consumer rights and transparency, and in that context adopted Regulation (EU) No. 1169/2011 of the European Parliament and of the Council, which addresses the right of consumers to be adequately informed about the food and products they purchase as end consumers. Although the EU Regulation contains a number of provisions relating to various types of food, it also prescribes that packaging of products containing vegetable oil/fat must specify which type of vegetable oil/fat is present.
The Serbian Government’s Decree is certainly a step forward in aligning with European law, following current trends, and harmonizing consumer rights. Naturally, it enables consumers to be clearly informed about the products they purchase, while business operators are obliged to ensure the fulfilment of that right. Given that some entities have already started implementing the Decree, there is a positive impression regarding its rollout, and the real impact will be seen after 1 August 2025.
By Oliver Radosavljevic, Partner, and Aleksandar Colovic, Legal Trainee