Agriculture and Food Processing

Agriculture

Send document by e-mail

From:
To:
Comment

Bosnia and Herzegovina is richly endowed with natural resources and conditions which create superb environment for agricultural production, including availability of labor, land, and other natural resources, as well as suitable climate.

The enormous agricultural potentials are only partly realized, in spite of huge human and natural resources.

Strong development and permanent production growth, which characterized B &H agricultural sector is considerably below its real potentials and expected performances. Most of the food products are imported, and especially wheat, meat products, milk products and fruit juices.

Poor financial resources, needed for modernization of all segments of agricultural production (replacement of outdated technologies and equipment; upgrading of the existing structure of agriculture sector, etc) are one of the main limitations for faster development of this sector.

Nevertheless B & H agricultural sector has a great opportunity for potential investors, based on the following main advantages:

  • Abundance of agricultural land - around 50 % of agriculture land is uncultivated
  • Favorable climate conditions
  • Good availability of skilled low cost labor & long tradition in agriculture
  • Developed education system, R & D institutions, agronomic and veterinary support
  • B & H is a considerable net importer of agricultural and food product
  • Privatization of state owned companies
Testimonials & Success Stories
 

Global Investment Promotion Best Practices 2012 of the World Bank has cited one example of support that FIPA provides to foreign investors who are running business in Bosnia and Herzegovina in order to contribute to increase the flow of foreign capital in the country.

The article said:  

„The Foreign Investment Promotion Agency (FIPA) of Bosnia and Herzegovina was an early convert to the idea of providing facilitation services to agribusiness investors as a way to maximize the positive impact of agriculture on the economy.

In 2007, for example, FIPA assisted a Dutch food processing company establish a US$1.6 million production facility to process unused milk ingredients into value-added products in Sarajevo to sell to markets in Eastern Europe and the Middle East.

As part of its aftercare program, FIPA assisted the company with its expansion plans. Among other things, the agency helped facilitate veterinary permissions, navigate various bureaucratic hurdles and played an important role in securing funding for the company’s expansion. It also helped develop a network of local suppliers and customers. As a result of these efforts, the Dutch investor developed stronger links with the Bosnian economy, thus increasing the positive spillover effects on the local economy.

Currently a new investment to establish a drying facility for milk powder is under way. This will further expand the processing facilities of unused milk ingredients. This additional planned investment is worth approximately US$2.8 million, thus nearly trebling the company’s original investment in the country“.

 

Follow us
Investment Project