The purchase of domestic products and ensuring the food security of the population with domestic products today appear as an expression of loyalty and patriotism, which affects the economic prosperity of society.
At a time when the Covid-19 pandemic has already severely disrupted the global economy, and because of the war, the world is on the verge of global food shortages, and it seems never more important to turn to domestic production and shorten supply chains and thus strengthen the self-sustaining economyof Bosnia and Herzegovina (BiH).
There is a simple definition of domestic product, domestic product is considered to be goods produced in BiH, in the production of which at least 50% of raw materials produced in BiH are used. Economists emphasize every day the importance of buying domestic products and services, because if 100 BAM is paid for a domestic product, as much as 95 BAM remains in the country. The purchase of domestic products affects the entire economy of BiH, domestic GDP, and all budgets. All money spent on domestic products, unlike foreign products, is multiplied four times.
Apart from strategic importance, domestic food production and short supply chains have other multiple benefits – economic, environmental, health, social and societal. By using short supply chains, local producers are left with a higher share of product added value. In addition, the local economy is strengthening, which enables the sustainability of agriculture and the survival of small businesses, crafts, and agricultural farms.
The food industry in BiH has potential that has unfortunately not been sufficiently exploited. Regardless of the fact that every year the range of exported food products and the markets in which these products are placed is growing, the import of almost all food products is many times higher than the export.
There are currently over 30 dairies operating in BiH, while 11 dairies have met all the requirements for exporting milk and dairy products to the European market. Dairies in BiH buy milk from 15.000 producers of raw milk, of which about 4.000 are in the Republika Srpska (RS), 10.500 in the Federation of BiH (FBiH), and about 500 from the Brcko District of BiH. On average, dairies in BiH buy between 37 and 40% of the produced quantities of fresh raw milk from domestic milk producers.
Milk production in BiH is one of the most important agricultural branches that form the backbone of agricultural and rural development, and one of the few branches of the food industry that exports more than it imports. About 250 million liters of raw milk are purchased annually in BiH, and in the last four years, the purchase has increased, so that in 2016 the purchase amounted to 243 thousand tons, while in 2019 it was 261 thousand tons. The importance of the dairy sector is reflected in the value of primary production of 300 million BAM per year, as well as 13.000 farmers who fully or partially earn a living on milk production.
Inmer Dairy, which operates within the largest dairy company in the world, Lactalis Group, currently cooperates with over 1.500 local farmers in BiH, and in 2021 alone it bought over 48 million liters of milk from them. Inmer Dairy produces more than 60 products locally under the Dukat, Alpsko Mlijeko (Milk), Domace Blago, and Dar prirode brands, Biznis Info writes.
E.Dz.
