FAO Workshop on best practices in cattle, sheep and goat production ensuring market access for small scale farmers Budapest, 25-28 October 2010

LIVESTOCK PRODUCTION IN THE FEDERATION OF BOSNIA AND HERZEGOVINA The Ministry of Agriculture, Water Management and Forestry of the Federation of Bosnia and Herzegovina

Bosnia and Herzegovina consists of the two entities: Federation of Bosnia and Herzegovina (FBiH) and the Republic of Srpska (RS), and the District of Brcko

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Levels of authority COUNTRY LEVEL

FEDERATION OF BOSNIA AND HERZEGOVINA

THE REPUBLIC OF SRPSKA

THE DISTRICT OF BRCKO

10 CANTONS MUNICIPALITIES MUNICIPALITIES

KEY AGRICULTURE AUTHORITIES State (national) level: → Ministry of Foreign Trade and Economic Relations (coordinates the Republic of Srpska and the Federation in matters of agriculture)

- State Veterinary Office - Plant Health Protection Agency

→Food Safety Agency Federation (entity) level: → The Federal Ministry of Agriculture, Water Management and Forestry →Cantonal ministries responsible for agriculture   

There is no Ministry of Agriculture at the state (national) level Entities (Republic of Srpska and Federation) are solely responsible for agriculture; Federation has to ensure coordination with the cantons Agricultural policies are defined and implemented at the level of the entities (Federation of BiH (with cantons) and Republic of Srpska)

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PRODUCTION OF ANIMAL ORIGIN The complex structure of the country and fragmented competences directly affect the development of agriculture

Total animal-origin production in the Federation of BiH in 2009

Production type

Unit

Quantity

Cow milk

lit

321,096,000

Sheep milk

lit

10,887,000

Goat milk

lit

4,356,000

Beef

kg

17,465,900

Sheep meat Pork

kg kg

1,443,000 4,413,200

Poultry

kg

22,147,300

Honey

kg

1,870,000

Chicken eggs

piece

234,590,000

LIVESTOCK NUMBERS IN THE FEDERATION OF BiH Type

Unit

2005

2006

2007

2008

2009

Cattle

Head

234,125

233,289

224,847

225,625

221,904

Sheep

head

506,964

545,356

549,490

533,895

534,366

Pigs

head

91,515

91,703

90,608

92,948

94,930

Poultry

beak

4,192,000 5,385,000 6,222,000 6,503,000 8,368,000

Bee Hives

piece

158,344

168,287

175,580

185,866

198,541

The table shows that the cattle numbers have slightly decreased, while other livestock types and bee hives have modestly increased.

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LIVESTOCK FARMS • Livestock production is dominated by smallsize farms. For this reason, an important part of the agriculture support program is support to investment projects. Investments in farm construction, procurement of equipment and basic herd provision are supported.

• An illustration in the milk sector – There are 6,300 milk farmers in Una-Sana Canton and five dairies that purchase the milk, but only one farmer has 250 cows and the other one has 150, all others are small farmers.

Payments in agriculture and rural development  The Support Program is implemented by the Federal Ministry of Agriculture in cooperation with cantonal ministries responsible for agriculture, Federal Inspectorate and the Federal Ministry of Finance.  In the last four years a wide-ranging support models have been implemented including farm investments, interest rate subsidies and co-financing of ensurance premiums, research projects and strategies, rural development support, as well as the credit line with the Development Bank of the FBiH to ensure sources of funding for major agricultural investments.

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Subsidized Quantities of Agricultural Products in the Federation of BiH in 2006-2009 Type

Unit 2006

2007

2008

Milk

liter

Young bull fattening

head

Pig fattening

87,759,300

82,631,579

92,002,248 89,567,834

5,201

5,278

7,315

7,345

Head 21,006

37,608

38,877

28,567

Breeding heifers

Head 849

2,058

3,552

4,509

Breeding sheep and goats

Head 65,627

47,824

174,279

184,070

Breeding pig gilts

head

546

1,095

1,018

236

2009

Subsidized Quantities of Agricultural Products in the Federation of BiH in 2006-2009 All support types have had the tendency to increase in recent years

Type

Unit

2006

2007

Honey

kg

47,844

62,824

Bees/no. hives hives

2008

2009

124,724

142,780

18-week old pullets

beak

473,668

532,004

442,594

599,780

Pullets of hard parental lines

beak

144,243

83,882

55,884

71,511

Pullets of light parental lines

beak

-

10,652

-

-

Sea fish production

kg

500,000

730,000

1,311,744

-

5,920,000

6,100,00

-

-

Young fish production

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KM

Distribution of support payments per cantons of the Federation of BiH in 2009

10.000.000,00 9.000.000,00 8.000.000,00 7.000.000,00 6.000.000,00 5.000.000,00 4.000.000,00 3.000.000,00 2.000.000,00 1.000.000,00

BPK HBK HNK SK PK

SBK TK USK ZDK ZHK

0,00

Cantons

Approved payments for 2009

Amount in KM

Animal production

23,100,764.75

47.10

5,026,636.34

10.25

10,384,357.82

21.17

Investment projects in 2009

5,577,109.89

11.37

Interest Rate Subsidies

1,515,605.22

3.09

Plant production Investment projects (outstanding from 2008 and autumn planting 2008)

Co-financing ensurance

1 KM = 0.51 EUR

%

42,856.33

0.09

300,000.00

0.61

1,537,000.28

3.13

Trainings, technical gatherings, seminars, fairs

635,700.00

1.30

Support to the organization of farmers

358,920.00

0.73

48,000.00

0.10

Technical education for EU legislation and funds

415,700.00

0.85

Reserves

104,577.83

0.21

Research projects Rural development

Tobacco Whitefly (Bemisia Tabaci) Study

TOTAL

49,047,228.46

100.00

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APPROVED PAYMENTS FOR ANIMAL AND PLANT PRODUCTION PER CANTONS in 2009 ANIMAL AND PLANT PRODUCTION in 2009

6,000,000.00

BPK HBK HNK SK PK SBK TK USK ZDK ZHK

5,000,000.00 KM

4,000,000.00 3,000,000.00 2,000,000.00 1,000,000.00 0.00 BPK HBK HNK

SK

PK

SBK

TK

USK ZDK ZHK

CANTONS

As shown in the table, Una-Sana canton received the highest amount of payments, and the Bosnian-Podrinje canton the least. In 2010 the total of 28,751,799.36 KM was allocated for animal production (52.28%).

Numbers of Breeding and Production Livestock in Federation Type

Unit

2006

2007

179,162

180,309

172,645

172,682

171,781

Liter

1,947

1,969

2,088

2,143

2,163

Sheep for breeding

head

386,251

415,825

421,512

408,780

410,455

Production per sheep

liter

49

49

51

49

48

Goat

head Liter

45,099 135

44,849 139

43,706 144

45,367 152

44,523 162

Pregnant sows and gilts

head

13,427

14,247

18,273

11,322

8,231

Laying hens

beak

1,728,000 1,633,000 1,331,000 1,458,000

1,574,000

Cows and pregnant heifers

Head

Production per cow

Production per goat

2005

2008

2009

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Numbers of Breeding and Production Livestock in Federation Type

Unit

2005

2006

2007

2008

2009

piece 267,306,000 256,050,000 200,515,000200,938,000 234,590,000 Egg Production beak

4,543,000

6,222,000

5,045,000

Bee hives piece 158,344

168,287

175,580

185,866

piece Egg per hen Honey per Kg hive

-

154

148

154

-

8,8

7,8

9,4

Broilers

3,679,000

6,794,000 198,541

Livestock currently used for breeding (cattle, sheep, goat and poultry) yield a relatively low results when compared to genetic potential. The main reasons for this are: poor rearing conditions and inadequate feeding, especially on small farms, which are dominant.

AGRICULTURAL LAND CATEGORIES in Federation of BiH CATEGORY

Agricultural land area Cultivated area Crop fields Orchards Vineyards Meadows Pastures Fish pool reeds

Forests Other TOTAL

State

419,670 111,401 49,513 4,199 1,842 56,686 306,006 1,282 912,563 76,763 1,408,997

%

32.65 13.73 10.54 10.04 36.77 19.22 66.63 48.60 69.95 55.49 51.64

Private

%

865,502 699,849 420,004 38,502 3,167 238,243 154,402 1,356 391,982 61,556 1,319,042

67.35 1,285,172 86.27 811,251 89.46 469,518 89.96 42,701 63.23 5,009 80.78 294,930 33.37 460,409 51.40 2,638 30.05 1,304,546 44.51 138,321 48.36 2,728,040

TOTAL

Livestock feeding mainly relies on grazing and on hay and silage in winter. In addition to problems also faced by other countries in transition, Bosnia and Herzegovina also has a very specific problem with land mines (around 3,000 km2 of areas potentially affected by land mines)

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ANIMAL IDENTIFICATION SYSTEM  Small livestock (sheep, goat, pig) identification in the Federation is carried out by the Federal Agrimediterranean Institute of Mostar and in the Republic of Srpska by the Breeding and Selection Agency of the Republic of Srpska  Cattle (including bisons and muflons) identification is carried out by the national-level Animal Identification Agency within the State Veterinary Ofice  Owners of sheep, goat and swine shall make sure that each animal in their ownership is properly identified.  Data taken from the Single Domestic-Animal Register for the Federation of BiH, on 14 October 2010, show the following situation: • 13,635 registered holdings • 422,461 sheep • 11,271 goats • 66,109 pigs  The total number of farms with over 50 sheep (50 is minimum number eligible for support) is 2,505, and they have 352,536 sheep altogether.  The total number of farms with over 25 goats (25 minimum number eligible for support) is 116, and they have 8,676 goats altogether.  The total number of farms with over 30 pigs (30 is minimum number eligible for support) is 346, and they have 37,309 pigs altogether.

ANIMAL IDENTIFICATION SYSTEM  As for the Federation, ear-tagging is carried out by authorized veterinary organizations that issue certificates of identification. Certificates are submitted to the Federal Agrimediterranean Institute which registers the identification ear tags. Veterinary inspectors keep records of animal slaughtering in slaughterhouses whereby ear tags are stamped and returned to the Institute.  Livestock owners shall be eligible for support only if their animals are eartagged;  Supervision of the identification process is carried out by the Federal and Cantonal Veterinary Inspectors.  Animal identification is very important for tracking animal movement especially in case of infectious diseases. There was no organized monitoring of infectious disease – brucellosis up until 2002. But lack of funding is still a major problem in this.  The major issue is ensuring follow-up tracking after animal identification and registration. The reason for this situation is that few owners report animal movements.

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Establishment of Farm and Client Registers  Federal Ministry of Agriculture, Water Management and Forestry has initiated the establishment of Farm and Client Registers – registering farm human resources, land and animals - Registration is voluntary, although only registered farms are eligible for support - Farm registration is carried out electronically - Farm registration process in both entities is harmonized at the national level and complies with the EU requirements - Registers enable more rational, faster, and better planning - Ensuring better monitoring of agricultural support payment system

Number of submitted support applications per quarters 2009-2010 35000

30000

29295

25000

21341

20000

15000

12365 10000

7551 5000

3810 2038

0

0

1.1.2009

1. Q-2009

2. Q 2009

3. Q-2009

4. Q-2009

1.Q-2010

2.Q-2010

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LEGISLATION A new Law on Livestock Production in Federation of BiH has been submitted for adoption The Law follows demands for trade of breedingworthy animals,preservation of genetic resources and other issues important for livestock improvement and EU requirements

The Law also considers livestock production enhancement, monitoring of production efffectiveness and profitability, improvement of quality of animal-origin products, protection of biodiversity of breeding-worthy animals etc.

LOCAL AND ORGANIC FOOD -

Although many of EU food safety regulations have been transposed at the national level, their full implemenation and enforcement hasn’t started yet.

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There is only one organization authorized for control and certification of organic food - “ORGANSKA KONTROLA-OK”, but since they receive few requests for certification per year, their sustainability is uncertain.

-

National-level Food Safety Agency adopted the Rulebook on originality indications and designations of geographical origin, as well as the Rulebook on indications of traditional reputation food.This is to ensure access on local and EU markets to those products

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The only autochtonous milk product produced industrially today in Bosnia and Herzegovina is Trappist “Livno Cheese”

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Production and consumption of many types of cheese are carried out on farms, with the exception of the Vlašić (Travnik) Whey and Cheese which are produced on small farms but also sold in large quantities on the market.

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The major problems are: • lack of training of producers and processors, • lack of interest and awareness among consumers and • fragmented and small farms.

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Challenges and Issues - Complex structure of the country, fragmented and diluted competences and responsibilities directly affect the development of all segments of economy, in particular agriculture -

Insufficient coordination in the implementation of agricultural policies

-

Insufficient budget allocations for agriculture

-

Underdevelopment of livestock sector (its share in the value of the total agricultural production is hardly 40%)

-

Only 27% of domestic demand for meat is currently met, and over 70% for milk, bearing in mind the fact that the consumption levels are much lower than in the developed countries

-

Major issues in livestock production: • Low productivity • High imports/ Low exports • Insufficient funds for support

LONG-TERM GOALS Implementation of agricultural policy goals laid down in the Law on Agriculture of the Federation of BiH: 1. Increasing self-sufficiency in agriculture and creating conditions for reliable supply according to consumer demands and requirments 2. Increasing and improving agricultural production and exports 3. Ensuring stable agricutlural income and more favorable living standards of agricultural producers 4. Technical and technological improvement of agriculture sector 5. Ensuring harmonization and integration of local agriculture sector into the EU and global markets 6. Sustainable use and conservation of natural resources, environmental protection and promotion of integrated and organic production 7. Rural development and conservation, preserving traditional rural values 8. Creating more favorable conditions for resolving labor and legal status of agricultural producers.

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WAY FORWARD - Strengthening of institutional structure and agricultural competences at the national level - Establishment of the national-level Ministry of Agriculture in order to be able to meet all EU requirements and harmonization with EU CAP - Efforts on structural changes in livestock production - Greater level of finalization of domestic products (animal-origin raw materials; processing of agricultural products) - Ensuring better quality to achieve higher competitiveness

THANK YOU!

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