The agricultural food industry in Bosnia and Herzegovina Prof. Dr. Gordana Đurić Although the agriculture has a crucial importance for BiH economic recovering and one of the essential activities in rural area of BiH and considering that it is main mean of income for rural population (acc. 50 % of total population), these facts were not enough stressed, both in speeches among official representatives in BiH as well as in contacts with representatives of international community. Also, the adequate domestic support to agriculture and rural development was missed.

Agricultural production in Bosnia and Herzegovina is Agricultural production in Bosnia and Herzegovina is charged with numberless problems: charged with numberless problems: small size of single farms, high rate of unused agricultural land because of unrecoverable migration of population and bad privatization unrecoverable migration of population and bad privatization of former state agricultural enterprises of former state agricultural enterprises weak institutions coordination in Bosnia and Herzegovina, weak measures of subsidies and absence of coordination in subvention of agricultural production subvention of agricultural production bad export/import share in agro-complex. bad export/import share in agro-complex.

Agro-complex import and export overview (mills. EUR) Agro-complex import and export overview (mills. EUR)YearExportImport Export/Import (%) , , , , ,05 Source: Foreign Trade Chamber of Bosnia and Herzegovina Bosnian and Herzegovina economy is almost completely devastated during war time and economy like this can not recover and can not offer significant quantity of goods for export even 10 years after war finished. Bosnian and Herzegovina economy is almost completely devastated during war time and economy like this can not recover and can not offer significant quantity of goods for export even 10 years after war finished. On the other hand, today as well as before 10 years, Bosnia and Herzegovina is import-dependant country no matter if it is word about raw materials, semi-final products or final products. On the other hand, today as well as before 10 years, Bosnia and Herzegovina is import-dependant country no matter if it is word about raw materials, semi-final products or final products.

Budget for agriculture subvention are only 3 – 4% of total Budget income per year. Budget for agriculture subvention are only 3 – 4% of total Budget income per year. Agricultural subventions on BiH level is only 0.32% of total GDP during 2004 and 0.37% in Agricultural subventions on BiH level is only 0.32% of total GDP during 2004 and 0.37% in Quite opposite, agricultural share in GDP and level of employment in agriculture is 18-20%. Quite opposite, agricultural share in GDP and level of employment in agriculture is 18-20%. The agricultural subventions in Republika Srpska were 9.45 mills. EUR or 1,79% of total Budget income in 2004, and mill. EUR or 3,49% of total Budget income in The agricultural subventions in Republika Srpska were 9.45 mills. EUR or 1,79% of total Budget income in 2004, and mill. EUR or 3,49% of total Budget income in In Federation of BiH, the subventions in 2004 were mills. EUR or 1,84% of total Budget income, and during 2005 this amount was decreased to the 9.44 mill. EUR or 1,82%. In Federation of BiH, the subventions in 2004 were mills. EUR or 1,84% of total Budget income, and during 2005 this amount was decreased to the 9.44 mill. EUR or 1,82%. Interest of BiH entities in agricultural sector is different. Interest of BiH entities in agricultural sector is different. The main part of agricultural land as well as primary agricultural production are located in RS, and FBiH has more processing The main part of agricultural land as well as primary agricultural production are located in RS, and FBiH has more processing This is the reason for different sounds in protection of domestic production regarding to tariff customs and these facts should be taken into account in all negotiations process and policy designing. This is the reason for different sounds in protection of domestic production regarding to tariff customs and these facts should be taken into account in all negotiations process and policy designing.

The BiH agriculture is in shadow of many problems (security and defense reforms, obligation to Haque Tribunal, etc) on one side, and bad agricultural policy on the BiH level and not adequate competent officiall representatives for agriculture sector in previos period, on the other side. The BiH agriculture is in shadow of many problems (security and defense reforms, obligation to Haque Tribunal, etc) on one side, and bad agricultural policy on the BiH level and not adequate competent officiall representatives for agriculture sector in previos period, on the other side. The some competencies in agriculture on BiH level (in framework of foreign trade and customs) are in MofTER, but this is not good solution for agricultural production and food industry. The some competencies in agriculture on BiH level (in framework of foreign trade and customs) are in MofTER, but this is not good solution for agricultural production and food industry. EU Functional Rewiev of the Agricultural Sector in BiH indicated the non-adequate sharing of competencies as well as the conflict of protection and support of still week Bih agriculture and MofTER general trade policies and interests. EU Functional Rewiev of the Agricultural Sector in BiH indicated the non-adequate sharing of competencies as well as the conflict of protection and support of still week Bih agriculture and MofTER general trade policies and interests. This Rewiev also indicated the weak BiH institutions coordination and necessity of entities ministry strengthening as development ministries. This Rewiev also indicated the weak BiH institutions coordination and necessity of entities ministry strengthening as development ministries.

The proposed changes of Constitutional Law include the clear sharing of competencies between State and Entity. In that meaning, the proposal of EU Review for establishing of Ministry of Agriculture and Rural Development of BiH is accepted. MoARD should be competent for: European Integration European Integration International Agricultural Trade International Agricultural Trade Animal & Plant Health and Food Safety, and Animal & Plant Health and Food Safety, and Policies & Strategies Coordination Policies & Strategies Coordination

Today, when three processes are negotiated in parallel: Today, when three processes are negotiated in parallel: Free Trade Treaty in South East Europe, Free Trade Treaty in South East Europe, Stabilization and Association Agreement. Stabilization and Association Agreement. WTO membership conditions; WTO membership conditions; Bosnia and Herzegovina is faced with situation where it must be found out way to protect and stimulate industrial and agricultural production without violation above mentioned crucial processes. Bosnia and Herzegovina is faced with situation where it must be found out way to protect and stimulate industrial and agricultural production without violation above mentioned crucial processes. Bosnia and Herzegovina should estimate and protect these sectors that have potential to face up with concurrency on open-door market. Bosnia and Herzegovina should estimate and protect these sectors that have potential to face up with concurrency on open-door market. BiH generally has a chance in fruit and vegetable, milk and milk products, fish, lamb meat, as well as in some organic production. BiH generally has a chance in fruit and vegetable, milk and milk products, fish, lamb meat, as well as in some organic production.

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