Bosnian fruit and vegetable producers remove 'export barriers'

SARAJEVO, (Patria) - A limited number of border crossings to Croatia and short working hours of phytosanitary offices for the inspection of fruits and vegetables exported from Bosnia and Herzegovina to the EU have caused significant losses to producers.

The Sweden/USAID FARMA II project supported the private sector's request to resolve the issue.

Due to the relatively short working hours of phytosanitary offices at two border crossings from Bosnia and Herzegovina to Croatia, designated for the export of fruits and vegetables from Bosnia and Herzegovina to the EU, trucks carrying mainly cucumbers and plums were delayed at the borders for up to three days in the first two and a half weeks of July. This led to spoilage and deterioration of product quality, and financial losses of around 100,000 euros.

The issue has now been resolved. But here's how it all unfolded.

First signs of trouble

"On March 1, 2019, the EU adopted a regulation on mandatory phytosanitary certification and inspection of fruits and vegetables imported from Bosnia and Herzegovina. Croatia began applying this regulation in September 2019. Furthermore, only two border crossings were designated for this inspection: Stara Gradiška and Nova Sela, i.e., Bijača," said Suad Selimović from the Association of Agricultural Producers and the Food Industry.

Phytosanitary offices at the two border crossings to Croatia were open from Monday to Friday, between 7:00 AM and 3:00 PM.

"As early as September 2019, we asked the Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina to intervene with the Croatian authorities to extend working hours, introduce Saturdays as working days, and open more border crossings for the export of fruits and vegetables," said Selimović.

"At that time, we had problems exporting plums from the late harvest. What happens at the border is the following. Phytosanitary inspectors receive documentation, i.e., our phytosanitary certificates, by 1:00 PM, and those who fail to submit documentation must wait until the next morning. It takes inspectors about half an hour to review the documentation for one truck, plus they have a break. When a larger number of trucks arrive at the border, congestion occurs, and that's when our problems begin," he added.

Addressing the authorities Fruit and vegetable producers in Bosnia and Herzegovina repeatedly addressed the previous and current governments at the state level with a request to intervene with the Croatian authorities and enable unimpeded export.

"We wrote to the previous government two or three times, and at least twice to the current government, but we received no response. Having learned from the problems we had with plum exports in September 2019, we knew we would have problems this summer. We knew that our trucks could not cross the border in a timely manner and that we would incur losses," explained Selimović.

According to Selimović, due to the congested border crossings in the last two and a half weeks, producers from Bosnia and Herzegovina lost a total quantity of products comparable to three trucks of plums and two trucks of cucumbers, valued at 100,000 euros.

The Sweden/USAID FARMA II project supported the request of Bosnian producers. Together with the Foreign Trade Chamber of Bosnia and Herzegovina, the project conducted an analysis of fruit and vegetable exports from Bosnia and Herzegovina over the past three years. The report shows that out of 188 million KM exported in 2019, 61 percent, or 115 million KM, went to EU markets. It also showed that the export peak in July and August reached 22-23 million KM per month, with monthly quantities between 10,000 and 12,000 tons, meaning 500 to 600 trucks per month. These figures confirmed that the demands of producers from Bosnia and Herzegovina were justified, and as such, they were presented in writing to the Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina (MVTEO), with the demands being supported.

A meeting of relevant institutions was held on July 9, 2020, which was also attended by representatives of the FARMA II project, USAID, and producers. It was agreed to immediately request the Croatian side to resolve this issue and facilitate the export of fruits and vegetables from Bosnia and Herzegovina. At that meeting, Bosnian producers issued an ultimatum that they would block the borders to Croatia if the situation did not change.

Positive outcome

Bosnian institutions intensified contacts with Croatian authorities, and late in the afternoon on Thursday, July 16, a positive response arrived. Phytosanitary offices at the Stara Gradiška and Nova Sela border crossings will operate from Monday to Friday between 7:00 AM and 7:00 PM, and on Saturdays from 7:00 AM to 3:00 PM (https://dirh.gov.hr/istaknute-teme/282).

When Selimović heard the news, he sighed, "We succeeded."

Selimović was pleased with this agreement, but still somewhat skeptical. On July 16, he said: "We will now closely monitor the situation and see how things work. We need to be sure that Saturdays are also working days for the phytosanitary offices at the borders. We need this information to know if we can meet delivery requests on Saturdays as well." A few days later, at the beginning of this week, Selimović confirmed that everything was in order. Although the situation was tense, and there were losses, not everything is bleak. As Selimović says, plum and cucumber production in Bosnia and Herzegovina has doubled compared to last year, and domestic producers had the opportunity to increase exports compared to last year. Other competitors from the region and the EU did not fare as well, so the demand for Bosnian products is high. Faster flow of goods should now contribute to Bosnian products reaching as many foreign buyers as possible.

"Currently, our customers are asking for one more truck of our plums and other products, and we will gladly deliver them," concluded Selimović.