According to the data of the Foreign Trade Chamber of Bosnia and Herzegovina, in the first six months of this year, a decline in exports of the wood industry, except for unprocessed wood, is evident. Due to the disruption of the German market, as the main export market of Bosnia and Herzegovina, as well as the global crisis, a drop of 33.4 million was recorded, which is 15.4 percent less than in the first half of last year. Domestic wood processors are facing big losses.
Wood processors in Bosnia and Herzegovina were forced to reduce production and the number of workers, and some even to stop production. Our interlocutor produces massive furniture that is currently doing well on the European market. He points out that they suffer constant pressure from foreign buyers to reduce prices. The crisis in Germany, he says, was reflected in the whole of Europe and in the reduction of the volume of purchases of wood products.
JANKO PETROVIĆ, owner of the company from Bratunac
“The general condition of other colleagues is quite worrying. The drop in income is up to 20 percent. Wide consumption of furniture is called into question, because these are average and lower salaries and the volume of this type of purchase has decreased”.
Data from the Foreign Trade Chamber of Bosnia and Herzegovina show that the value of wood industry exports in the first half of the year compared to the same period last year was 8.5 percent lower. Only the export of unprocessed wood recorded an almost double growth both in terms of quantity and value, because the suspension of the export of forest wood assortments from Bosnia and Herzegovina has been suspended since last year. Due to reduced orders, domestic producers also reduced the number of employees by 20 percent.
IGOR ANDRIĆ, secretary of the Association for Forestry and Wood Processing in PKRS
“About 30 percent reduced physical production volume in furniture. We have cases where some manufacturers have suspended production, and everyone is complaining about a decrease in orders and great pressure to reduce prices.”
Experts in this field point out that until last year the demand was significantly higher than the supply and the disruption occurred after the war between Russia and Ukraine, which was reflected in the Western European market. They believe that domestic wood processors should increase the degree of product finalization.
DRAGAN ČOMIĆ, professor at the Faculty of Forestry, University of Banja Luka
“Forestry and wood processing make up 18 percent of total exports and employ 17,000 workers. In Germany alone, 30 percent fewer building permits were issued for the year, which indicates a decrease in investment, and thus the demand for wood products.”
DAMIR BEĆIROVIĆ, economist
“Regarding assistance to wood processors, it is very difficult for the state to assist only one branch of the economy. In general, we have to act on a general plan. Improvement of the business climate itself, debureaucratization, reduction of contributions.”
A significant decline in exports of wood products was recorded in Germany, Italy, Slovenia, France, while growth was achieved in China and Poland. Our interlocutors believe that the way out for domestic wood processors is to try to break into new markets, apart from Western Europe.
