Economic analyst Igor Gavran told FENA the possible drop in prices of agricultural products in the European Union, caused by surpluses that will arise as a result of the Russian ban on import of products should not lead to major price changes in Bosnia and Herzegovina.
“Prices on our market are already beyond all realistic prices for the majority of food products, and if the wholesalers of goods import some commodities to Bosnia and Herzegovina at a lower price, then it is possible that someone will only earn more on the market, so it is unlikely that customers in BiH will see a price drop,” believes Gavran.
He pointed out that it would be logical that prices of goods intended for export to Russia would drop in the European Union since there would be no place to place the products, but since the capacity of the market is the way it is, in an attempt to recover some of the damage, some manufacturers might go for increase in the price of goods which could be distributed to certain markets.
Gavran believes that a good part of European manufacturers try to recycle as much fresh fruit and vegetables as possible hoping that in some short term period the ban would be lifted.
“The Russian ban on imports from the European Union is an opportunity for BiH to offer its products in the Russian market, and even though our capacity is not large, certain producers have really good opportunity here,” said Gavran.
(Source: Fena)
