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Sarajevo Times > Blog > BUSINESS > Costs are rising, BiH Producers and Buyers are in a catastrophic Situation
BUSINESS

Costs are rising, BiH Producers and Buyers are in a catastrophic Situation

Published: January 19, 2022
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The wave of price increases that marked the end of last year apparently spilled over into a new one. Disruptions in the world economic market and the growth of basic foodstuffs have led to the fact that almost 50% of consumer baskets are food costs. In the meantime, producers of Bosnia and Herzegovina (BiH) are in a catastrophic position. Last year was marked by production losses. Left to their own, they are already announcing a reduction or complete cessation of production.

New year, old problems. As the need for home-grown food increases, the possibilities decrease. Production has long been unprofitable.

“That sowing will cost us like, say, two sowings of previous years. This increase is abnormal. We are a little comforted that the prices of cereals are now rising, but it is not some big price when you look at the prices of fertilizers and raw materials, which are again 2-3 times more expensive than corn and wheat, “ stated Dragisa Stajic, a producer.

Due to the low purchase price of cereals, producers demand lower prices of bread and bakery products, but also other products.

“Rising prices are at the expense of citizens, we warned that this would happen. All institutions are trying to protect themselves, only agricultural production has remained unprotected in this country and consumers. And we are both producers and consumers, you see, and you never know when the new day comes, what will be the price of goods, ” said Savo Bakajlic, president of the Association of Farmers of Semberija and Majevica.

And the prices are going wild. At the city market, traders say, there are almost no products whose price has not changed at least twice. It made everything more expensive.

“From onions, potatoes, beans, these most important foodstuffs, not to mention chard, spinach, peppers, everything else. It’s very expensive. Plums, since I work at the market, have never been more expensive. The cost of the cleaned one is 9 BAM, and 8 BAM with pips, walnuts 18-20, hazelnuts 15-18. Very, very expensive, ” stressed Onelija Stankovic, a trader at the green market.

Commodity reserves would balance a wave of price increases. However, we do not have them in BiH. The expansion of domestic production would also alleviate them, and it is on the verge of collapse due to uncontrolled imports. Due to the increase, the union’s consumer basket – analysts claim – exceeded 2.000 BAM. And while prices are rising, queues are growing in front of the embassies of European countries. The queues in BiH are also growing, but only those in front of the employment service and the humanitarian organizations.

E.Dz.

Source: Federalna

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