Balkan agricultural sectors face import pressures and rising costs

Agricultural sectors in Bosnia and Herzegovina and Serbia are facing significant challenges due to drought, rising production costs, and increased reliance on imports. In Bosnia and Herzegovina, meat imports reached nearly 210 million marks in seven months, putting immense pressure on domestic livestock farmers who report falling purchase prices for beef and milk. Poultry producers also warn of a potential 10 to 15 percent price increase next year due to rising feed costs and previous export blocks caused by avian flu.

In Serbia, potato production areas are shrinking, forcing the country to become an importer to meet market demands. Producers cite drought and competition from low-priced imports as primary concerns.

In the financial sector, Bosnia and Herzegovina has seen rapid adoption of a new instant payment system, processing over 67 million KM in its first two months. Additionally, the Investment and Development Bank of Republika Srpska has approved 116 housing loans totaling over five million KM under a new direct financing model. Meanwhile, in Croatia, pellet prices for heating have risen by up to 40 percent compared to last year.