The interest of Russian partners in products from Republika Srpska (RS) and the Federation of Bosnia and Herzegovina (FBiH), such as various types of cheeses, cream, dry sausages, and prosciutto, is growing, which gives domestic producers additional support for export to a large and demanding market.
The export of meat, milk, and dairy products to Russia was approved in June this year after years of negotiations and harmonization of standards between BiH institutions and the Russian Federation. At that time, six companies from RS and the FBiH were given the opportunity to place products on this large market, which was assessed as a significant step forward for the domestic food industry.
It is a permit that covers products of animal origin, including pork and beef, milk and dairy products, poultry products, and fish products. The BiH Minister of Foreign Trade and Economic Relations, Stasa Kosarac, then stated that this was the result of years of work and good cooperation between the institutions of the two countries, while the Chamber of Commerce of RS assessed it as a major development opportunity for domestic producers.
The owner of the Bileca dairy “Padjeni,” one of the companies that received the green light for export to the Russian market, Nenad Vukoje, said that before the first shipments, it is necessary to determine the methods and possibilities of realization.
“Interest in our products is growing; some Russians have even announced their arrival already next week to discuss a potential partnership. There are more interested parties, but interest and realization are not the same. The question is what can actually be exported, in what period, and under what conditions. Honestly, I think it is difficult to expect concrete exports this year, but what will be next year, remains to be seen,” emphasized Vukoje.
He added that every new entry into a foreign market represents a major step forward for domestic production.
“We have the capacities, serious people, and technologists who are working, so we are ready for any challenge,” he said, reminding that this dairy processes about 70.000 liters of milk daily.
Vukoje pointed out that the best candidates for the Russian market are products with a longer shelf life, such as semi-hard and hard cheeses and cream.
One of the companies that also received approval for export is the meat industry “Tulumovic” from Laktasi. The owner, Djoko Tulumovic, says that they will mostly present processed products to the Russian market.
“We will thoroughly research their market to see what would sell best. In any case, this is a big opportunity for our industry and we will make an effort to use it in the best way,” said Tulumovic.
The president of the Association of Agricultural Producers of RS, Stojan Marinkovic, emphasized that the export of milk and dairy products to Russia certainly encourages the development of this branch, but warned that the domestic market must be a priority.
“We do not have enough meat even for our own needs, which is why we are always for the option of first placing products on the domestic market, including processed products, rather than spending a lot of money on imported meat of questionable quality. We absolutely support the possibility of export, but only of those products that we have in surplus, such as milk and dairy products,” emphasized Marinkovic.
Obstacles
Businesspeople say that meeting the demanding Russian standards shows that the domestic economy can meet high standards. However, long distances, high transport costs, overpriced air transport, and significantly detoured land routes are the main factors affecting the realization of exports. Still, they emphasize that it is necessary to gradually increase production for export, without jeopardizing the stability of the domestic market.
