Dairies in the Tuzla Canton have begun introducing procurement reductions for farmers this year, lowering purchase prices and even refusing to buy milk from farms, justifying the move by claiming that they have significant milk surpluses in their warehouses.
Dairy farmers have requested protection from the Government of Tuzla Canton, and a response from the Government of the Federation of Bosnia and Herzegovina is also expected.
Without buyers for the milk they produce, farmers are left with two options: either dump the milk or decide to sell their cows and reduce the number of dairy cattle on their farms. This decision is particularly difficult for them, as many have invested for years in farm equipment and high-yield dairy cows.
The Association of Dairy Farmers of Tuzla Canton claims that there is no surplus of domestic milk, but rather excessive imports. They point out that around 800,000 litres of milk were imported into Bosnia and Herzegovina in January of this year alone.
“The milk was imported from countries more developed than Bosnia and Herzegovina, particularly those with very large agricultural budgets and access to European funds. Because of this, their farmers can afford not to focus on the price of milk. Their priority is production, while the state ensures the market,” said Eldin Glibanović, President of the Association of Dairy Farmers of Tuzla Canton.
Farmers are calling on state-level authorities to introduce import levies on milk in order to maintain the competitiveness of domestic production.
The cantonal government can provide financial support to help farmers maintain their current level of milk production, but the relevant minister emphasised that it has no authority over import-export policy in this sector.
“Our dairy farmers receive significant support of 3.8 million BAM from the cantonal budget, allocated solely for milk production. In addition to the financial support provided for crop production areas, these are extra funds. What we can promise is that we will continue supporting this branch of agricultural production,” said Fedahija Ahmetović, Minister of Agriculture of Tuzla Canton.
Last year, Bosnia and Herzegovina imported milk and dairy products worth 255 million BAM, and the trend is continuing to grow.
Domestic milk and dairy production currently covers only around 40 percent of the market in Bosnia and Herzegovina. Agricultural experts say that milk imports are therefore expected, since the country does not produce enough to meet total demand.
“The focus should be on establishing a state reference laboratory for the control of food entering Bosnia and Herzegovina. We are seeing an increasing amount of imported food that does not correspond to what is stated on product labels. When it comes to milk and dairy products, a large share of these imports are actually products based on palm fat, which means they cannot truly be considered dairy products,” said Suad Selimović from the Chamber of Economy of Tuzla Canton.
A long-term solution to the current and similar situations in the procurement of agricultural products would be the development of domestic processing capacities.
Selimović suggested that the cantonal government and farmers could establish a processing facility through a public-private partnership model, which would help stabilize and regulate milk prices.
Following this idea, one dairy company in Tuzla Canton is currently installing equipment for powdered milk production, which will be able to process up to 100,000 liters of milk per day.
