How to survive: Floods reduced milk production, still no export to EU countries

A working meeting of the highest management of the Chamber with the Minister of Foreign Trade and Economic Relations Boris Tučić, his assistants and associates, Director of the Veterinary Office Ljubomir Kalaba and representatives of eight companies from the dairy industry in Bosnia and Herzegovina was held in the premises of the Foreign Trade Chamber of Bosnia and Herzegovina on Friday, regarding the current state of the dairy industry, writes the BiH news agency Patria.

As stated by one of the meeting participants, the director of the dairy farm "Milkos" Sarajevo, Adin Fakić, the problems have culminated due to the inability to export milk and dairy products to the market of Kosovo, as well as other markets.

We received a promise that a meeting will be held to resolve the issue of export to Kosovo. Another problem is that the export of European dairy farmers to Russia has been stopped, so the Livno dairy farm is facing major problems – Fakić states.

He emphasized that it would be good for the European Union to remove BiH from the list of third countries, and that they received a promise at the meeting that the Ministry of Foreign Trade and Economic Relations of BiH will do everything to achieve this.

Another problem is that BiH cannot ban milk imports because, according to Fakić, that would lead BiH dairy farmers into an even bigger problem.

We would have disruptions, and there are also CEFTA countries, which would put us in a subordinate position – Fakić explains.

The meeting also discussed surpluses of raw milk, which dairy farmers cannot process into the regular market assortment of products due to export limitations on the domestic and export markets. Issues concerning the value of imported goods, as well as the more intensive continuation of activities regarding the export of milk and dairy products to the market of the Republic of Croatia, i.e., the European Union, as well as the issue of the application of the Rulebook on Raw Milk from 01.01.2015 were also considered.

Given that the dairy farm "Milkos" suffered significant damage in the floods during May, these are additional burdens for this company, along with the problems of being unable to export milk. Although milk production on the "Spreča" farm has continued, it has been reduced due to a doubled harvest.

We have completed the harvest, but due to reduced yields, we have also reduced the animals' rations, and consequently, milk production has decreased. We don't know how long the losses and damage will affect production – said Fakić.

It should be noted that only one bank granted this company a one-year moratorium on its loan, while others ignored the recommendations of the Government of FBiH and the Banking Agency of FBiH.

Fakić also stated that the Development Bank of FBiH has one line from which they expect current assets and fresh capital to recover their production and operations, writes Patria.