AS HOLDING Hrvić: We saw the crisis as a challenge and responded successfully

Rusmir Hrvić, President of the Management Board of AS Holding, speaks in an interview for mcm.ba about the current situation, food production, the workers who are the strength of AS Holding, and how to help the economy during the crisis. 

Mr. Hrvić, you manage the largest Bosnian-Herzegovinian food production system. How has AS Holding performed in this crisis?

Hrvić: Yes, our capacities, taking into account all our companies, amount to the production of around 300,000 tons of food, finished products, and indispensable food additives. Thousands of our workers worked as one. This time as well, it has been shown how important it is to have such an integrated and strong system for the functioning of life. It is difficult to talk about ourselves, which is why we listen much more to what others say about us. We are receiving many praises from friends, but also from people we do not know, for the overall engagement we have shown. I believe we have justified the trust and responded to this immensely important and simultaneously difficult task. We put all our capacities into full operation. We managed to stabilize the market. In doing so, I emphasize, we respected both the domestic market and our traditional foreign markets. In a short period, we delivered tens of thousands of tons of flour, salt, pasta, biscuits, soups, spices, spreads, etc. We have shown that as a system that cares about its consumers, we are indispensable at this moment.

Given the capacities and portfolio at your disposal, you are becoming an increasingly significant regional player.

Hrvić: Still waters run deep, as our people would say. For years, we have worked patiently, invested wisely, and strategically expanded precisely into those areas where Bosnia and Herzegovina is traditionally a leader. Today, our system includes companies with the longest tradition and respectable capacities in the food segment, such as Klas and Solana Tuzla, which have now come to full expression. Along with facilities in Ljubače, Sprind, then plants in AS, Kent, Vispak, AC Food, Oaza, ZIM, and other companies that together produce practically everything needed for human nutrition, AS Holding has truly demonstrated its strategic strength. We integrated our business system and tried to solve problems preventively. We created the framework conditions to be ready for this latest crisis, seeing it as a challenge.

How do you think the situation will develop further?

Hrvić: The crisis will likely persist. Some restrictions may ease to a certain extent in the foreseeable future, but precautionary measures will still be necessary. The virus spreads quickly and threatens all categories of the population. In this regard, we have taken all necessary precautionary measures in all our companies. It is true that we are operating under extremely difficult conditions, but we are giving our maximum. I can say that in the time ahead, we will put all our capacities into full operation so that none of our customers on domestic and foreign markets, primarily our neighbors, will feel a shortage of the goods we produce, primarily salt, flour, and bakery products.

In recent days, economic patriotism has come to the fore again. How do you explain that?

Hrvić: In extraordinary circumstances, people see and understand the situation they are in better and more clearly. When borders close or supply becomes difficult, domestic producers come to the fore. I cannot even imagine what would have happened if we did not have in our Bosnian-Herzegovinian hands a Klas, Solana Tuzla, Violeta, Madi, or Bosnalijek. May all those I did not mention forgive me, but the message is important. All of us together are worth as much as we produce. Producing and buying domestic must remain a priority and concept of our life even after this crisis, because that is what we all need. Everything in our group started with this concept, because by starting trade 25 years ago, we realized that there is no life for us here if we do not produce ourselves. It is completely normal and desirable to love your own and find in it the motivation to succeed. Our motivation is our Bosnia, with our unity in diversity. Today we are where we are, and today we have a system backed by thousands of workers, but also millions of consumers. And in doing so, we have a strength that is regionally respectable.

It seems that this time your long-standing appeals to invest in primary agricultural production could come to the fore. What is your assessment of how the spring and autumn sowing seasons might go this year?

Hrvić: Agricultural producers have recognized the interest, and that is good. More will be sown this year than ever before. According to some data, in Bosnia and Herzegovina we have had an incredible 1 million hectares of uncultivated land until now. We can no longer afford that luxury. I see that the ministries of agriculture have started a strong campaign this year to build an efficient system for incentives and integration of agricultural production, from entities, through cantons, to municipalities. True, a ministry at the state level is missing, but I hope that with the approach of EU accession, we will fulfill that obligation as well. On our part, we will, as we have emphasized so far, guarantee the purchase from domestic producers for our needs. The only condition is quality.

In your opinion, how can the economy be helped?

Hrvić: Part of the economy is in a difficult situation, while another part, such as food production, mines and electricity production, production of medicines and hygiene products, has shown extraordinary responsibility at this important moment, organized itself and achieved maximum results. Thanks to this part of domestic production, the market has been stabilized and there have been no major disruptions in its supply. 

The economy must be helped systematically, clearly, and precisely, without any conditions. Because sooner or later, all companies will face problems of solvency, liquidity, or business success. All levels of government must be involved in this assistance because it is very important to maintain domestic production and jobs, and after the emergency measures end, to stabilize economic flows as soon as possible and start new cycles of production, innovation, and investment.