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Sarajevo Times > Blog > BUSINESS > Drought Threatens Domestic Food Production: Prices Expected to Rise
BUSINESS

Drought Threatens Domestic Food Production: Prices Expected to Rise

Published: August 8, 2026
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High temperatures and a lack of rainfall are already taking a heavy toll on Bosnia and Herzegovina’s agricultural production. Farmers report significant losses in crops, particularly vegetables, corn and fruit, while rising fuel, fertilizer and other input costs are putting additional pressure on producers.

In Janja, vegetable producer Nasir Karijašević spends his days and nights in the fields, trying to protect his crops through irrigation. However, he says the drought is unlike anything he has experienced before.

“It has never been like this, that the drought was severe. We irrigate as much as we can. We have to rain every second or third day. We already have a 60 percent failure in potatoes. I have 17 dunums, 60 percent is a sure failure due to the drought,” Karijašević said.

Similar problems are being reported across Bosnia and Herzegovina. Corn, fruit and vegetable crops are particularly affected, while farmers are also struggling with high production costs.

Nedžad Bćo, president of the FBiH Farmers’ Association, warns that the situation could become even more serious if the current weather conditions continue.

“If this continues, and it is certain that it will last, it will be catastrophic, especially for silage corn, since the harvest is underway. Vegetables and fruits are already drying, the situation is not good at all. Price increases have long been underway and they will continue, even if there were no drought, because sowing was done with very expensive inputs,” Bćo said.

Consumer associations are also warning of a difficult autumn. With a large share of household income already going toward food, even relatively small increases in prices can have a significant impact on citizens.

Jovan Vasilić of the Consumer Association “Zvono” in Bijeljina says the effects of rising prices are already becoming visible.

“We are affected by the price increases, which can already be seen slowly in shops and at markets. Autumn will be very, very difficult. It is most likely that the largest number of citizens and pensioners will turn to taking out loans in order to survive,” Vasilić said.

Bosnia and Herzegovina’s dependence on food imports could make the situation even more difficult. Economist Zoran Pavlović expects prices to continue rising, citing climate change, lower yields, fuel-price fluctuations and the abandonment of rural areas as factors affecting domestic food production.

“I expect further price growth and at this moment I don’t see a chance for the situation to stabilize. We will really share the fate of the whole world. There will be an increase in the price of products because we have climate changes and lower yields. On the other hand, we have fluctuations in fuel prices and, on the third hand, the abandonment of villages,” Pavlović said.

How large the final economic impact of the drought will be will depend on weather conditions in the coming weeks, as well as developments on domestic and international markets.

But for farmers and consumers alike, one thing is becoming increasingly clear: a difficult autumn could be ahead, with further pressure on food prices.

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