Exporter Guide - 2011

An Expert's View about Agriculture and Animal Husbandry in Bosnia and Herzegovina

Posted on: 30 Dec 2011

BiH has a quite large foreign trade deficit with imports 2.2 times greater than exports.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 12/1/2011 GAIN Report Number: BK1113 Bosnia and Herzegovina Exporter Guide 2011 Update Approved By: Jim Dever Prepared By: Sanela Stanojcic Report Highlights: Bosnia and Herzegovina (BiH) imports about two thirds of its overall food needs. The market for processed foods focuses on value rather than quality as consumers seek to obtain the most for their money. Food import tariffs are low compared to the tariffs in other countries in the region. Challenges to exporters include a complicated dual system of government, low incomes, and poor infrastructure. This report contains marketing tips, information on importing foods, and important points of contact. Post: Commodities: Sarajevo Author Defined: I. Market Overview Economic situation The economy in Bosnia and Herzegovina (BiH) is still recovering from the 1992-1995 war, and from the transition from a socially planned to a market economy. Per capita GDP in 2010 was $6,600, with a total estimated GDP of approximately $16.83 billion. Real GDP declined in 2009 by 3.1 percent, but is expected to increase in 2011 by.2.2 percent. Average monthly net salary is $536 (2010). A degree of macro-economic stability has been achieved with the introduction of a Central Bank, adoption of the currency board and creation of a single currency, the Konvertabilna Marka (Convertible Mark, KM). The currency board ensures that KM is fully backed by hard currency or gold, and the exchange rate is fixed at approximately 2 KM to the Euro. The inflation rate for 2010 was 2.1%. BiH's top economic priorities are: acceleration of EU integration, strengthening the fiscal system, public administration reform, World Trade Organization (WTO) membership, and securing economic growth by fostering a dynamic, competitive private sector. To date, work on these priorities has been inconsistent. The country has received a substantial amount of foreign assistance but must prepare for declining assistance flows in the future. Still regarded as a transition economy, Bosnia and Herzegovina (BiH) sees the long-term goal of EU membership as a driver to further economic growth and development. In 2009, Bosnia and Herzegovina has undertaken an International Monetary Fund (IMF) three- year standby arrangement, necessitated by sharply increased social spending and a fiscal crisis precipitated by the global economic downturn. The program aims to reduce recurrent government spending and to strengthen revenue collection. Structure of the economy The structure of the BiH economy is changing quite slowly. GDP composition by sector is: agriculture 9.8%, industry: 25.9%, services: 64.3%. Industrial production average growth rate in 2010 was 4.2. Major productive sectors of the economy are industry and mining, telecommunications, construction, trade, transportation, and agriculture. The leading industries are steel, aluminum, minerals, vehicle assembly, textiles, tobacco products, wooden furniture, explosives, munitions, aircraft repair, domestic appliances, and oil refining. In the post-war period, the economic activity was characterized by the existence of large state owned enterprises. These companies operated with significant losses, at less than full capacity, and with out-dated technology and management techniques. Lately, there has been significant growth in the number of registered micro, small and medium enterprises. The private sector share is around 60%, and it is slowly taking the lead. BiH has approximately 1.6 million hectares of land suitable for cultivation. The best prospect sectors are fruit and vegetable, livestock, and poultry. The most important crop is corn followed by wheat and barley. Small, low-output, family farms averaging 2-5 hectares characterize agricultural production along with low input use (fertilizers, chemicals, and certified seeds), poor crop management and post-harvest management practices, and poor railway and road infrastructure. The agricultural sector participation in the GDP is approx 10%. For the most part, agriculture has been privately owned, but farms have been small and inefficient, and food has traditionally been a net import for the country. The official unemployment rate is approximately 40%. It is estimated that an actual unemployment is approximately 25%, because of the black economy. BiH’s grey economy is relatively large – estimates range up to 50 percent of the GDP. Business environment BiH is composed of two entities, the Federation of Bosnia and Herzegovina (F BiH) and Republika Srpska (RS), with significant differences with regard to the business environment. Although there has been an effort to create a single market in BiH, significant legislative, regulatory and institutional differences between the Entities persist. Between the two Entities, factors such as business registration requirements and most taxation and standard requirements are separate and different. The creation of a single economic space is a precondition for the regeneration of the post-war Bosnian economy, the transformation from a planned to a market economy, and greater integration into Europe and world trade structures. Significant barriers to internal and external trade and foreign direct investment remain, and there are weaknesses in the legal base related to competition, public procurement, financial services, standards and regulations, and the regulation of essential services. Foreign Trade BiH has a quite large foreign trade deficit with imports 2.2 times greater than exports. Total exports grew from $1,067 million to $4,804 million from 2000 to 2010, while imports rose from $3,107 million to $9,220 million in the same period. Agricultural imports represent about 25% - 30% of total imports, and about 5% of total exports. BiH has a liberal trade regime. Bilateral free trade agreements previously signed with many countries in the South-East European region are now replaced with Central European Free Trade Agreement (CEFTA), which includes Albania, BiH, Croatia, Macedonia, Moldova, Montenegro, Serbia, and Kosovo (UNMIK). The principal trading partners are the European Union (EU) and the countries of ex-Yugoslavia. Trade volum e, 200 200 200 200 200 200 200 200 08 200 201 mil 0 1 2 3 4 5 6 7 20 9 0 lion $ Exports 1,06 1,07 1,00 1,40 1,91 2,30 3,68 4,25 7 1 6 0 2 3 9 024 3,93 4,80 2 5, 0 4 Import 3,10 3,03 3,80 4,82 5,98 6,80 7,86 9,52 12,19 8,77 9,22 s 7 4 1 4 1 7 2 9 0 8 0 Source: BiH Agency for Statistics Main BiH trade partners (year 2009): EXPORT BiH Agency for Statistics IMPORT BiH Agency for Statistics Croatian, Slovenian, German, Serbian, Austrian and Italian processed food products dominate the market. The most imported food products are beverages (alcoholic and non-alcoholic) and mineral water, grains, tobacco products, and dairy products. Total imports from the U.S. in 2010 were $ 328 million (3.6% share of total imports), and exports to the U.S. in 2010: were $12.6 million (0.3% share of total exports)). Total food imports from the U.S. in 2010 were $11.33 (3.2% share), and consisted of various food ingredients, processed fruits and fruit juices, dried nuts and fruits, whisky, and seafood. Imports of U.S. origin bulk commodities (mostly wheat and sunflower seed oil) were part of the U.S. food donation program to BiH. BiH is not a member of the World Trade Organization (WTO) but has started accession negotiation. Size and Growth of Consumer Foods Market Unfortunately, there has been no information on size and growth of the market. Market Opportunities for Consumer Foods and Fishery Products Challenges to Marketing High Value U.S. Foods in BiH: · The weak economy affects consumer-purchasing power. An average net wage is lower than in any country in the region and the unemployment rate is high. Therefore, people are more interested in price than in quality; · Quality and safety control among locally produced and imported products if often poor in part because BiH government laboratories work with out-dated technology and are ill-equipped. Therefore, labeling requirements are often not met and low-quality products may be found on market at that undercut other products; · There is still a lot of smuggling; · Fraud and corruption are still a problem, especially in relation to taxation and import duties. However, high quality U.S. products could find small, but growing market due to the fact that consumers’ awareness is improving and eventually will result in spending more money on high quality food products. Californian wines (lower quality), almonds and peanut butter are already in the market. Food Expenditures and Consumption It is estimated that an average Bosnian family that consist of 3.27 members spends around $ 4,940 annually (2011 est.) on food products (source: Entity Institutes for Statistics). According to BiH Agency for Statistics based on the World Bank’s methodology (minimum 2,100 calories per person on daily basis), the poverty rate for BiH in 2007 was 18.6%, with 22.9% at risk of poverty thus almost one fifth of total population cannot afford enough food. Demographic Developments and Impact on Consumer Buying Habits BiH has a population of around 4 million and an average BiH household is comprised of 3.27 members. A single parent heads slightly over one in ten households. The population growth rate is 0.008% (2011 estimate) . The rural population decreased significantly as the result of the war. Most of the rural population moved to urban areas or went to other countries as refugees and have been slow to return. In some areas, landmines remain a barrier to agricultural production although there is a significant international demining effort. Advantages Challenges Insufficient domestic food Long distance, bad transportation conditions, absence production, imports nearly three of highways, limited railway service times larger than exports Increased urban population Weak economy affects consumer purchasing power, low average net wage, high unemployment rate High quality of U.S. products Consumers more interested in price than in quality Import duties low if compared to Illegally imported and low-quality products compete other counties in the region with legitimately imported foods Relatively low costs for introduction Different distribution systems in the two Entities, and promotion of new products using different taxation system; difficulties in finding a local broadcast and print media or reliable and capable local partner to carry out in-store promotions marketing and distribution Increasing number of large retail Domestic market flooded with products imported from supermarkets ex-Yugoslavia neighboring countries (Central European Free Trade Agreement) and EU countries (Interim Agreement lowers import duties for EU member- countries) Fascination with American culture Reservations towards GM foods due to a lack of (language, music, TV shows, consumer education on the subject and a desire to fashions) carries over to American meet EU requirements food, such as famous “Coca Cola” II. Exporters Business Tips Local business customs Importers/wholesalers/distributors provide transportation, product storage, market information, financing, and some insurance. Finding an agent and/or distributor is the most effective way to market consumer goods. The U.S. Foreign Commercial Service can help you locate qualified distributors. For more information, please see: http://www.buyusa.gov/bosniaandherzegovina/en/ The Economic and Commercial Service Office at the U.S. Embassy Sarajevo assists U.S. companies in exporting to Bosnia and Herzegovina by identifying local opportunities for the sale of U.S. products or services, providing counseling on the market, and meeting the advocacy needs of U.S. firms. The distribution systems are different for the F BiH and the RS because of differing legal frameworks. There have been efforts lately to harmonize rules between the two entities but there are still significant differences. It is often necessary to develop multiple distribution channels and relations with distributors in both Entities in order to cover the whole country. Some foreign companies have established a representative office in order to control distribution channels, while some companies rely on strong local companies to control distribution channels. Local companies prefer to do business with people they know well. Business friendships are highly valued. Establishing a local presence and employing local people signal long-term commitment to the market, and are well received. Wholesalers are the real channels for providing transportation, product storage, market information, financing, and risk management. Most wholesalers are independent full-service merchant wholesalers, importing and distributing goods. There is a significant degree of specialization in the wholesale sector by industry. The most significant development in the retail market is the appearance of large retailers, many of them foreign-owned, such as Mercator from Slovenia, Interex from France, Velpro from Croatia and locally-owned MIMS group, Sam’s Shop, and Tropic Centar. The introduction of the shopping mall concept has changed consumer habits and enabled larger retailers to shift the effort of financing onto manufacturers and distributors, especially in the consumer goods sector. General Consumer Tastes and Preferences Generally speaking, most consumers view price as the primary factor in their food purchasing decision. Preferences tend toward large packages at lower prices. Shopping centers are becoming an increasingly popular retail food sales point. Most people usually buy nonperishable foods at large supermarket centers once or twice a month. Perishable foods, fruits, vegetables, bread and fresh meat are usually bought at small grocery stores, specialized stores or green markets. Consumption of red meats is traditionally high but steady because of its high price when compared to relatively cheaper poultry meat and low purchase power. There are ongoing outbreaks of animal diseases such as brucellosis and classical swine fever, though these outbreaks do not appear to have shaken consumer confidence. BSE and FMD have not been reported in BiH. Traditionally, consumption of beef and veal is higher than poultry, pork or lamb. Pork consumption is much higher in the RS than in the F BiH because of F BiH’s large Muslim population. A typical Bosnian meal is comprised of either red or white meat, potatoes or some other vegetables. Rice is a common dish that on average is eaten once a week. Apples are the most popular fruit. There are only a few ethnic restaurants (e.g., Italian, Chinese and Mexican). Fish consumption is traditionally low (around 2.5 kilograms/year). The demand for organic foods is quite low. Imported organic foods are usually sold in specialized stores, and are consumed by the ex-patriot community and as a pseudo-medicinal treatment for the sick. Consumers generally dislike genetically modified (GM) foods. Advanced consumers think that they don’t have enough information to be pro or against biotech products, and that they need more education in order to decide whether or not they’ll consume them. More information could change consumer attitudes towards biotechnology in a positive direction. Additionally, more knowledgeable consumers say they would eat biotech foods after proper testing and labeling, so they could decide whether they want to buy such a product. In general, most people prefer to prepare meals at home from fresh food items than buy ready-to-eat and frozen meals. There is the belief that fresh cooked food is healthier and that frozen ready to eat foods are overpriced. Supermarkets do offer ready to eat meals but at relatively high prices. There is a small, but strong market segment made up of all of the foreigners in BiH (especially in Sarajevo and Banja Luka) that work for foreign humanitarian and military organizations. Food Standards and Regulations Please refer to 2011 Country FAIRS Report. General Import and Inspection Procedures Foreign exporters can import food products into BiH using a locally registered office or a local company/shipping agency registered for import activities. It is common for agents to help with food import regulations. Prior import approvals and licenses are required for live animals and non–heat treated animal products, and seeds and pesticides. For animals and non–heat treated animal products the State Veterinary Office (SVO) provides final approvals. For seeds, planting materials and pesticides the entity agricultural ministries provide prior approvals. Forms are available at the SVO and the Agricultural Ministries (see Key Contacts and Further Information). It is important to note that requirements for prior import approvals might differ between the two Entities. All products must be accompanied with standard documents that follow each shipment and by health certificates issued by relevant authorities of exporting countries (e.g. veterinary certificate for meat and meat products, phyto-sanitary certificates for fruits, vegetables, seeds etc.) and are subject to veterinary and phyto-sanitary inspections at border crossings and sanitary and market inspections at customs points. A GMO free certificate or a GMO-related statement included in the health certificate is often required for grains and similar products. That’s because recently adopted GMO Law has prolonged a moratorium on GMO imports because of absence of enforcing regulations. Sanitary inspectors visually inspect all food for sanitary wholesomeness prior to customs clearance and take samples for laboratory testing (Appendix II). Imported goods are held at the customs point until testing is complete. Market inspectors issue the quality certificates at inspection points (see Appendix I). Quality control inspections are done at the exporter/importer’s written request, which should be received at least 24 hours prior to the customs clearance. The request for quality control must be accompanied with basic documents that follow each shipment, translated into Bosnian/Croatian for the F BiH or into Serbian for the RS. The following information must be provided in the documents: type and name of product, country of origin, exporter’s name, manufacturer’s name, type and number of transport means, port of loading and unloading, total pieces, packaging unit, gross and net weight and product’s basic quality data. If the same product is imported again, and has been tested within 90 days, only a visual check is done. Both Entities have officially recognized laboratories to test imported food products. If a market inspector rejects an importer’s request, goods are stored until the procedure is complete - the inspector can order the return or destruction of goods, if necessary, at the cost of importer, or can order certain changes prior to customs clearance. III. Market Sector Structure and Trends Domestic Industrial Capacity Before the war, the food industry was concentrated into large state-owned companies that were also involved in primary agricultural production, processing and wholesale and retail operations. However, at the end of the war, the agro-processing industry was operating at less than 10% of its pre-war capacity due to heavy damage to buildings and equipment. In addition, the raw material supply and sales channels had been disrupted. The agricultural production and the food industry continued to suffer during the transition from a planned to a market economy. Many pre-war companies are still being privatized and are racking up losses. There are still a few companies that have rebuilt successful fruit, vegetable, and meat processing operations. In general, the BiH food industry is still too small and inefficient to compete with large foreign industries. Domestic food production is insufficient and covers approx. 30 – 35% of total needs. Food Retail Sector In general, small retailers are slowly losing out to large wholesalers with developed retail operations. Lately, appearance of shopping centers (malls) has been significant and has introduced big changes in the retail market. There are yet not many foreign retail chains, except Slovenian Mercator, French Interex (discount house that attracts price-concerned consumers), Croatian Velpro (cash and carry) and Konzum, and Serbian C Market. Those centers import and distribute food and offer a great variety of fresh meat, exotic and new-to-market foods, and ready-to-eat foods. They also provide good professional service, restaurants with ready meals at favorable prices and lots of fun (entertainment for kids, clowns, and games/ lotteries). Quite often, they organize in-store promotions and product tastings and provide small gifts with purchased products. A special discount is offered to faithful customers. Food items are also sold in a number of small independent groceries and open markets. Hotel, Restaurant and Institutional (HRI) Total turnover in catering 2000 –2007 Ye Federation of BiH Republika Srpska ar Total turnover (000 KM) Total turnover (000 KM) 2000 68,900 54,584 2001 60,784 48,312 2002 71,010 47,917 2003 76,270 53,046 2004 85,113 53,512 2005 86,754 49,814 2006 95,281 65,794 2007 118,786 77,341 2008 135,697 101,298 2009 131,784 103,335 Source: Federation and Republika Srpska Institutes for Statistics US$ 1.00 = KM 1.4 HRI prepare meals themselves. They buy ingredients from various suppliers, from small grocery stores and green markets to big producers, retail centers and wholesalers, depending on their size and the number of meals. Tourism, tourism promotion, and the hospitality and catering industry have been regulated at the Entity level. This has resulted in business-inhibiting differences in requirements for companies and individuals working in the sector, differences in the way funding for tourism promotion is collected and distributed, and differences in the way accommodation is classified. Lately, there has been a growing consensus that tourism can be a major source of job growth and foreign exchange earnings for Bosnia and Herzegovina. According to foreign experts, BiH has a large potential in niche market tourism and tapping into the world tourism market could have huge benefits for the BiH economy. Promotional and Marketing Strategies Advertising that used to be the single marketing tool in BiH is now combined with direct marketing (door-to-door contacts, material distribution and special offers). The most popular advertising media are television, radio, newspapers and magazines. In addition, outdoor advertising is becoming more and more popular (billboards, bulletins, and displays in urban areas and on sides of the road). Recent data indicates that 68 percent of adverting is conducted through TV, followed by 20 percent through outdoor advertising, while radio and print media account for 6 percent each. Also, cable television is rapidly developing in urban areas of BiH. Radio is the most popular marketing tool at the local level. Direct mailing is also becoming popular advertising tool (leaflets placed under car windshield wipers, mailbox brochures, or advertising materials placed in newspapers). Quite often, in-store promotions and informal gatherings are used for presentations of the products. Supermarkets often deliver flyers, informing on their products, prices and special discounts. Trade events and fairs are a good way to market products and services in BiH and to find partners and distributors. The trade fair sector in BiH has been growing rapidly. Fairs provide opportunities for local and foreign companies to establish business connections. Trade events are held throughout BiH. The Sarajevo “Agro-food” fair is the most popular in the F BiH and for the RS the Banja Luka “Food and Beverages” fair. Regional centers like Zenica, Tuzla, Mostar and Bihac are very active in trade promotion. About one-third of the BiH population uses the Internet regularly, and food sales are still very small. Prod Mark 201 Ave Import Tariff Rate 2011 Key Market uct et 0 rag Constr Attracti Cate Size imp e aints veness gory orts Ann of for USA (in ual Market mill Imp Develo ion ort pment KM) Gro wth (20 05- 201 0) Toba 10 142. 3.35 http://www.uino.gov.ba/download/Doku Traditio Demand cco billio 5 % menti/Dokumenti/bos/Carina/2008-b- nally and prod n CTBiH.pdf strong consum ucts cigar presenc ption ettes e of should Croatia continue n to grow tobacco product s Choc N/a 126. 3.7 http://www.uino.gov.ba/download/Doku Compet Poor olate 4 % menti/Dokumenti/bos/Carina/2008-b- ition local CTBiH.pdf from producti key on Europe an compan ies Beve N/a 125. 4.1 http://www.uino.gov.ba/download/Doku Compet Insuffici rages 1 % menti/Dokumenti/bos/Carina/2008-b- ition ent local and CTBiH.pdf from producti Miner neighbo on, al ring approxi Wate supplier mately r s 30% importe d Biscu N/a 106. 8.5 http://www.uino.gov.ba/download/Doku No Growing its 5 % menti/Dokumenti/bos/Carina/2008-b- demand and CTBiH.pdf Cooki es Coffe 20,0 69.7 6.5 http://www.uino.gov.ba/download/Doku No Traditio e 00 % menti/Dokumenti/bos/Carina/2008-b- nally MT CTBiH.pdf high consum ption Fish 10,0 47.8 1.2 http://www.uino.gov.ba/download/Doku Traditio This and 00 % menti/Dokumenti/bos/Carina/2008-b- nally market Seaf MT CTBiH.pdf low could ood (est.) consum become ption, more lower dynamic quality if an fish is import consum is ed the followed most by a good promoti on Chee 40,0 47.3 1.2 http://www.uino.gov.ba/download/Doku Compet Insuffici se 00 % menti/Dokumenti/bos/Carina/2008-b- ition ent local MT CTBiH.pdf from producti key on and Europe growing an demand supplier s Sauc N/a 36.2 0.4 http://www.uino.gov.ba/download/Doku No Insuffici es % menti/Dokumenti/bos/Carina/2008-b- ent local and CTBiH.pdf producti Spice on s Wine 20,0 30.3 5.4 http://www.uino.gov.ba/download/Doku Increasi Consum 00 % menti/Dokumenti/bos/Carina/2008-b- ng local ption of hecto CTBiH.pdf product high liters ion of quality (est.) good wines is quality expecte wines, d to competi grow tion with from standar Europe d of an living. supplier s Ice- 2,50 14.6 5.2 http://www.uino.gov.ba/download/Doku Compet BiH has crea 0 MT % menti/Dokumenti/bos/Carina/2008-b- ition poor m (est.) CTBiH.pdf from domesti key c supplier producti s such on. as Croatia Tree N/a 9.6 5.5 http://www.uino.gov.ba/download/Doku Compet Insuffici Nuts % menti/Dokumenti/bos/Carina/2008-b- ition ent local CTBiH.pdf from producti key on supplier s (Roman ia, Italy and Iran), lower quality nuts preferr ed Currency note: US$1.00 = KM 1.4 V. Key Contacts and Further Information FAS/USDA U.S. Embassy to BiH 71000 Sarajevo Bosnia and Herzegovina Tel.: +387 33 704 305 Fax: +387 33 704 425 Contact person: Sanela Stanojcic E-mail: Sanela.Stanojcic@usda.gov State Veterinary Office Radiceva 8/II 7100 Sarajevo Contact person: Darko Cobanov Bosnia and Herzegovina Tel. +387 33 565 700 Fax +387 33 565 725 E-mail: info@vet.gov.ba http://www.vet.gov.ba/ BiH Plant Health Administration Radiceva 8 71000 Sarajevo Contact person: Miljana Knezevic Tel/fax: +387 33 211 693 and 212 387 E-mail: upravabihzzb@bih.net.ba http://www.uzzb.gov.ba/ F BiH Ministry of Agriculture, Water Management and Forestry Titova 15 71 000 Sarajevo Bosnia and Herzegovina Tel. +387 33 214 247 Fax: +387 33 206 638 http://www.fbihvlada.gov.ba/engleski/index.html RS Ministry of Agriculture, Forestry and Water Management Kralja Petra I Karadjordjevica 100 78000 Banja Luka Tel: +387 51 338 397 and 338 398 Fax: +387 51 338 866 http://www.vladars.net/lt/min/mps.html E-mail: mps@mps.vladars.net F BiH Inspectorate Turhanija 2 71 000 Sarajevo Tel: + 387 33 563 350 Fax + 387 33 563 351 RS Inspectorate Kralja Petra I Karadjordjevica 130 51000 Banja Luka Tel. + 387 51 222 460 Fax: +387 51/213 734 Indirect Tax Administration Ulica Bana Lazarevića bb, 78 000 Banja Luka Tel: +387 51 335 494 Fax: +387 51 335 101 http://www.uino.gov.ba/ American Chamber of Commerce in Bosnia and Herzegovina Zmaja od Bosne 4, 71000 Sarajevo Tel: 387-33-269-230 Fax: 387-33-269-232 Email: amcham@lsinter.netBiH Foreign Trade Chamber Branislava Djurdjeva 10 71 000 Sarajevo Tel. +387 33 663 370 and 663 636 Fax: +387 33 663 632 Email: cis@komorabih.com http://www.komorabih.ba/ F BiH Chamber of Economy Branislava Djurdjeva 10 71 000 Sarajevo Tel. +387 33 663 370 and 667 940 Fax: +387 33 663 632 and 663 635 E-mail: webmaster@komorabih.com http://www.kfbih.com/eng/index.htm RS Chamber of Commerce Djure Danicica 1/II 78 000 Banja Luka Tel. +387 51 301 908 and 301 838 Fax: +387 51 301 838 http://www.pkrs.inecco.net/ FIPA - Foreign Investment Promotion Agency Phone: 387-33-278-080 Fax: 387-33-278-081 Email: fipa@fipa.gov.ba Branilaca Sarajeva 21/lll71000 Sarajevo Bosnia and Herzegovina www.fipa.gov.ba BiH Institute for Accreditation Hamdije Cemerlica 2/7 71000 Sarajevo Phone: 387-33-715-560 Fax: 387-33-715-561 http://www.bata.gov.ba/bafiles/index_ba.htm VI. Other Relevant Reports 2011 Export Certificate FAIRS Report APPENDIX I. STATISTICS YEAR VALUE TABLE A. KEY TRADE & DEMOGRAPHIC INFORMATION Agricultural Imports From All Countries ($Mil) / U.S. Market 2004 877/2 Share (% 1/) Consumer Food Imports From All Countries ($Mil) / U.S. 2004 142/2 Market Share (% 1/) Edible Fishery Imports From All Countries ($Mil) / U.S. 2004 14/0 Market Share (% 1/) Total Population (Millions) / Annual Growth Rate (%) 2008/2011 3,8/ 0.008 Urban Population (Millions) / Annual Growth Rate (%) 2006 1.7/0.3 Number of Major Metropolitan Areas 2/ 2010 0 Size of the Middle Class (Millions) / Growth Rate (%) n/a n/a Per Capita Gross Domestic Product (U.S. Dollars) 2010 6,600 Unemployment Rate (%) 2010 25% Per Capita Food Expenditures (U.S. Dollars) 3/ 2007 1,510 Percent of Female Population Employed 2007 37.8% Exchange Rate 11/2/11 US$1.00 = 1.421 KM Footnotes: 1/ Data from FAS’ web-enabled UNTrade database (HS 6-digit option; Import Market Share BICO 3-Year format) 2/ There are no metropolitan areas with population in excess of 1,000,000 3/ The figure presents food expenditures for a basket composed of necessary food products. TABLE A. KEY TRADE & DEMOGRAPHIC INFORMATION TABLE B. CONSUMER FOOD & EDIBLE FISHERY PRODUCT IMPORTS Bosnia-Hercegovina Imports from the Imports from the . Market Share Imports World U.S U.S. (In Millions of Dollars) 2002 2003 2004 2002 2003 2004 2002 2003 2004 BULK AGRICULTURAL TOTA NA 57 125 NA 6 5 0 11 4 L Wheat NA 26 60 NA 6 4 0 22 7 Coarse Grains NA 1 5 NA 0 0 0 0 0 Rice NA 3 3 NA 0 0 0 0 0 Soybeans NA 1 2 NA 0 1 0 0 2 Other Oilseeds NA 1 10 NA 0 0 0 0 0 Cotton NA 1 3 NA 0 0 0 0 0 Tobacco NA 9 7 NA 1 1 0 3 3 Rubber & Allied Gums NA 1 1 NA 0 0 0 0 0 Raw Coffee NA 9 21 NA 0 1 0 0 0.34 Cocoa Beans NA 1 1 NA 0 0 0 0 0 Tea (Incl. Herb Tea) NA 1 1 NA 0 0 0 0 0 Raw Beet & Cane Sug NA 3 9 NA 0 0 0 0 0 ar Pulses NA 4 3 NA 1 1 0 3 0 Peanuts NA 1 1 NA 0 0 0 0 0 Other Bulk Commod NA 1 1 NA 0 0 0 0 0 ities INTERMEDIATE AGR NA 1 6 0 0 3 ICULTURAL TOTA NA 167 213L Wheat Flour NA 1 4 NA 0 0 0 0 0 Soybean Meal NA 1 12 NA 0 1 0 0 1 Soybean Oil NA 1 1 NA 0 0 0 0 0 Vegetable Oils (Excl. Soyb NA 37 48 NA 1 6 0 0.01 12 ean Oil) Feeds & Fodders NA 8 28 NA 0 1 0 0 0.01 (Excl. Pet Foods) Live Animals NA 45 33 NA 0 0 0 0 0 Hides & Skins NA 4 11 NA 0 0 0 0 0 Animal Fats NA 1 1 NA 0 0 0 0 0 Planting Seeds NA 3 9 NA 0 1 0 0 0.30 Sugars, Sweeteners, & NA 0 1 0 0 0.02 Beverage Ba NA 46 43 ses Essential Oils NA 8 8 NA 0 1 0 0 0.80 Other Intermediate 12 16 NA 0 1 0 0 0.99 Produ NA cts CONSUMER-ORIENTED AGRICU NA 389 539 NA 2 3 0 0.52 0.64 LTURAL TOTAL Snack Foods (Excl. Nu NA 48 86 NA 0 1 0 0 0.18 ts) Breakfast Cereals & NA 2 3 NA 0 0 0 0 0 Pancake Mix Red Meats, Fresh/Chilled/Frozen NA 19 18 NA 0 0 0 0 0 Red Meats, 24 37 NA 0 0 0 0 0 Prepared/Preserved NA Poultry Meat NA 8 10 NA 0 0 0 0 0 Dairy Products (Excl. Ch NA 42 41 NA 0 0 0 0 0 eese) Cheese NA 16 22 NA 0 0 0 0 0 Eggs & Products NA 1 2 NA 0 0 0 0 0 Fresh Fruit NA 39 47 NA 0 0 0 0 0 Fresh Vegetables NA 11 20 NA 0 1 0 0 0.15 Processed Fruit & Vege NA 18 20 NA 1 1 0 0.09 0.16 tables Fruit & Vegetable NA 2 11 NA 0 1 0 0 0.30 Juices Tree Nuts NA 4 4 NA 1 1 0 7 12 Wine & Beer NA 31 63 NA 0 0 0 0 0 Nursery Products & Cu NA 6 9 NA 0 1 0 0 0.11 t Flowers Pet Foods (Dog & Cat 0 0 0 0 0 Food NA 1 2 NA) Other Consumer- O 115 142 NA 2 3 0 2 2 riented P NA roducts FOREST PRODUCTS (EXCL. PULP & PAPER NA 38 51 NA 1 1 0 0 0.02 ) Logs & Chips NA 1 2 NA 0 0 0 0 0 Hardwood Lumber NA 1 3 NA 0 0 0 0 0 Softwood and Treated 1 1 NA 0 0 0 0 0 Lumb NAer Panel Products (Incl. 0 0 0 0 0 Plywood NA 22 32 NA) Other Value-Added Wood 3 14 NA 1 1 0 0.01 0.06 P NA 1roducts FISH & SEAFOOD 21 NA 1 1 0 0.53 0.91 PRODUCTS NA 17 Salmon NA 1 1 NA 1 1 0 3 14 Surimi NA 1 1 NA 0 0 0 0 0 Crustaceans NA 1 1 NA 0 0 0 0 0 Groundfish & Flatfish NA 3 5 NA 1 0 0 0.27 0 Molluscs NA 1 2 NA 1 1 0 6 10 Other Fishery A 13 14 NA 1 0 0 0.11 0 Produ Ncts AGRICULTURAL A 613 877 NA 8 14 0 1 2 PRODUCTS TOTAL N AGRICULTURAL, FISH & 8 15 0 1 2 FORESTRY TOTA NA 669 950 NA L Source: FAS' Global Agricultural Trade System using data from the United Nations Statistical Office TABLE C. TOP 15 SUPPLIERS OF CONSUMER FOODS & EDIBLE FISHERY PRODUCTS CONSUMER-ORIENTED AGRICULTURAL TOTAL Import 2002 2003 2004 1000$ 1000$ 1000$ Croatia 0 104,308 128,339 Serbia & Montenegro 0 6,134 112,808 Slovenia 0 70,315 72,272 Austria 0 28,171 34,182 Germany 0 27,067 30,372 Italy 0 26,807 24,811 Netherlands 0 18,330 23,681 Poland 0 18,656 19,135 Ecuador 0 17,512 14,344 Turkey 0 6,997 13,473 Hungary 0 13,601 12,443 Spain 0 6,878 7,170 Macedonia (Skopje) 0 2,940 5,334 Greece 0 3,327 4,820 United States 0 2,011 3,443 Other 0 35,782 32,337 World 0 388,861 539,015 NA - Data not available (not reported) Data: Harmonized Tariff Schedule (HS 6 Digit) Source: FAS' Global Agricultural Trade System using data from the United Nations Statistical Office Reporting Country: Import Bosnia-Hercegovina Top 15 2002 2003 2004 Ranking 1000$ 1000$ 1000$ Croatia NA 7,425 6,040 Argentina NA 2,487 3,360 Spain NA 1,291 2,825 Thailand NA 1,240 2,167 Italy NA 1,789 1,611 Slovenia NA 1,336 1,215 Germany NA 208 622 Philippines NA 4 404 Morocco NA 2 340 Lithuania NA 52 254 Serbia & Montenegro NA 4 245 Chile NA 54 221 United States NA 92 191 Turkey NA 99 189 Indonesia NA 0 166 Other 0 1,211 1,150 World 0 17,301 21,005
Posted: 30 December 2011

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