Bosnia and Herzegovina has favourable geographical and climate factors and a long agricultural tradition. Contributing 7% to the country’s gross domestic product and 2% to the country’s total export, agricultural sector is very important for the overall economy in Bosnia and Herzegovina. It employs 18% of the total number of employed people, and is an important source of income for the poor rural population.
Nevertheless, most famers in Bosna and Herzegovina are struggling to ensure sales of their products in international or local markets.
To enhance their competitiveness, the producers in this sector need to combine natural advantages and modern knowledge and practices. Therefore, they need a better access to revived and expanded extension services. Small and medium-sized enterprises need to invest more in innovation and optimization of production and processing capacities. Stakeholders at all levels within the sector need to join their capacities to better exploit market opportunities.
Competitiveness of small and medium-sized enterprises in agricultural sector has improved.
Within the sector of agriculture EU ProLocal focuses on the production and processing of fruits and vegetables. Programme specifically, supports small and medium sized enterprises from the selected value chains in the Programme areas to address impediments to their competitiveness assisting in the following areas:
- Inclusion of SMEs in the local, regional and international value chains;
- Establishing business contacts in the local, regional and international markets, though, for example, B2B meetings and enhanced marketing;
- Improving visibility of local products through marketing and branding of locations and products.
- Improving productivity and quality of products and services;
- Improving production, processing and storage capacities of SMEs;
- Strengthening capacities of extension services.
- Improving quality infrastructure;
- Strengthening capacities of the relevant institutions and expansion of their service range and connecting with EU partners.
- Strengthening horizontal and vertical integration of SMEs;
- Establishing new, innovative ways of networking among SMEs.