Tuzla Canton dairy producers face crisis as federal subsidies delayed

Dairy producers in the Tuzla Canton warned that a crisis of unprecedented scale threatens more than 1,200 farms and the families that depend on them. They have been waiting nine months for federal subsidy payments, the longest delay in decades, despite a record agricultural budget in the Federation of Bosnia and Herzegovina. Production costs have surged, with the current sowing season being the most expensive ever due to high seed, fertilizer and fuel prices, and the canton still lacks a subsidised "blue diesel" fuel for farmers.

Milk purchase prices have fallen sharply, from about 90 fenings per litre to between 55 and 75 fenings, while the price of milk on the market remains low, putting farm profitability at risk. Producers also cited climate‑related challenges such as drought and aflatoxin contamination. They demanded urgent payment of the overdue subsidies and concrete measures to stabilise the sector, warning that continued inaction could lead to farm closures and jeopardise national food security.

The Federal Ministry of Agriculture, Water Resources and Forestry blamed delayed documentation from the canton, while the Canton’s Minister of Agriculture said all required forms had been submitted on time. The dispute has escalated, with the dairy association accusing the ministry of poor communication and the minister accusing the association’s leader of misusing subsidies. The situation remains tense as producers plan further actions to protect their farms.