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Food Production
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Food Production

 

WHY INVEST?

  • The Republic of Srpska ranks very high in the Europe (0.952 ha per inhabitant) by the available agricultural area.
  • There are large areas of unpolluted fertile soil, pure water, and clean air, which enable production of organic food.
  • Due to its favorable geographic position, climate, and differentiated geological conditions, biodiversity of medicinal and aromatic herbs throughout RS territory is abundant. It is estimated that more than 400 varieties of medicinal and aromatic herbs are growing in the territory of the Republic of Srpska.
  • Potential of the Republic of Srpska is seen also in livestock
  • Presence of geothermal waters has been verified in over 50% of agricultural areas, which is significant for investments in greenhouse and hothouse production. The Republic of Srpska offers a strategic location and the free trade agreement CEFTA, which create favorable opportunities for marketing of products at the vast market of the EU and adjacent  countries
  • We have qualified staff and tradition in food production

Processing of agricultural products is the prevailing activity of 270 firms, that employ 6,500 workers, where most represented branches are: flour-milling and baking industry, fruit and vegetables processing, production of milk and dairy products, production of meat and meat products, confectionery industry, and production of pasta. Agricultural production and agricultural services are the prevailing activity of 450 firms (companies and agricultural cooperatives) that employ 5,000 workers and 221,000 households covering 800,000 inhabitants (57.1% of total population)

  • Ownership structure of land is favorable, with a tendency of growth of individual farms
  • Increasing number of firms is introducing the quality systems ISO 9001:2000 and HACCP.
  • There are significant capacities in the field of food processing industry, currently not operating
  • Legislation is being harmonized with EU regulations
  • Food industry sector has been constantly growing (number of companies has been growing in all production fields)
  • Republic of Srpska budget allocation for agricultural and rural development incentives is planned to increase from 4% in 2005 to 8% in 2015. The percentage of this allocation is the largest budget allocation percentage of all the countries of the region. Incentives of the Republic of Srpska Government take the form of public invitations published by the Ministry of Industry, Energy and Mining for granting of incentive funds for introduction of quality systems in small companies and granting of funds for export encouragement. Also, the Ministry of Agriculture, Forestry and Water Management grants cash incentives for agricultural and rural development (each year the Ministry adopts a Rulebook on Requirements and Manner to Obtain Cash Incentives for Agricultural and Rural Development. The Rulebook for 2015 was published in the Republic of Srpska Official Gazette, no. 27/16).

INVESTMENT OPPORTUNITIES

Subsectors attractive for investment:

  • fruit and vegetable production and processing: greenhouses and hothouses for vegetables and berries intended for immediate consumption and processing (there are processing capacities, nonetheless large quantities are being imported); growing of raspberries and blackberries, and construction of cooling houses and fruit curing houses (favorable climatic conditions, there is market for sales both in the country and abroad), development of plantations: nuts, hazelnuts, pears, cherries and apples (climatic conditions are favorable, nonetheless large quantities  for consumption and processing are being imported),
  • viticulture and wine production: growing of vineyards and production of grapes and wines of distinctive geographic origin,
  • animal husbandry, meat production and processing: development of farms, reproduction centers, and production of meat and dairy products of higher level of processing: hard and semi-hard cheeses, durable and semi-durable meat products (sausages, cured and canned meat),
  • fishery: growing of quality fish intended for export and development of processing capacities,
  • beekeeping: production of bee products of distinctive geographic origin intended for export, introduction of new products primarily for the needs of tourism and catering industry,
  • production and processing of medicinal herbs and mushrooms, and picking of forest products, primarily  mushrooms and snails,
  • growing and processing of industrial plants: sugar beet and oil plants (soy beans and canola)


Besides greenfield investments, investments are also possible in the following existing companies:

 

THEY HAVE ALREADY INVESTED

Some of the positive examples of investment are the following:

  • Mlijekoprodukt d.o.o. Kozarska Dubica,
  • Marbo d.o.o. Laktasi,
  • Sava d.o.o. food industry Bijeljina
  • Vitinka a.d. Kozluk (mineral water and juice production),
  • Banja Luka Brewery a.d. Banja Luka (beer production),
  • Vitaminka a.d. Banja Luka (fruit and vegetables production),
  • Swisslion-Takovo d.o.o. Trebinje (confectionery industry)
  • Prijedorcanka a.d. Prijedor (fruit processing),
  • Mira a.d. Prijedor (confectionary industry),
  • MB Impex d.o.o. Banja Luka (spirits production),
  • Boksit fruit preparation, curing and packaging factory – Milici,
  • Zalfija beekepers’ cooperative, Trebinje, Beekeeping Center

Additional sources for analysis:

  • Republic of Srpska Agriculture Development Strategy
  • Republic of Srpska Rural Development Strategy
  • Republic of Srpska Forestry Development Strategy 2011-2021
  • Feasibility Study for Use of Biomass in the Republic of Srpska
  • Environmental Impact Study of Use of Biomass in the Republic of Srpska
  • Forest Development and Preservation Project – Strategy of Financial Sustainability for Forest Management
  • Database of Economic Indicators of the Republic of Srpska

Some laws governing the field of agriculture and forestry and hunting:

For more information, please visit the internet site of the line Ministry and Public Company Sume Republike Srpske.