Bosnia and Herzegovina faces pellet shortages and agricultural crisis

Bosnia and Herzegovina is facing dual pressures in the agricultural and energy sectors. A surge in demand for pellet heating fuel, driven by early purchasing and raw material shortages, has led some producers to stop accepting new orders. Prices for certain pellet grades have reached 760 KM per ton. Producers note that while they aim to keep prices stable to prevent customers from switching to other energy sources, rising costs for raw materials, transport, and labor are significant factors.

Simultaneously, extreme drought and heatwaves are devastating crops across the region and Europe. In Bosnia and Herzegovina, farmers report significant losses in corn, fruit, and vegetables, alongside livestock suffering from heat stress. This agricultural crisis, coupled with reduced milk production, threatens to drive up food prices. Experts warn that if production in the European Union continues to decline, meat prices could increase two to three times due to Bosnia and Herzegovina's reliance on imports.