Agriculture, food, forestry and rural development in Bosnia and Herzegovina

The agricultural sector is an important component in the overall economic structure of Bosnia and Herzegovina, since it has a share of around 8% in the creation of GVA and is ranked as the fourth branch of the economy. In addition to the economic, the importance of the agricultural sector is reflected in social and environmental aspects, as well as formal and informal employment of the population, especially in rural areas. The share of agriculture in total employment is relatively high and accounts for about 19% of the working age population. In addition, a large number of BiH residents are engaged in agricultural production as an additional vocation in order to produce and provide food for their own use.

Agricultural potentials in Bosnia and Herzegovina are high and are reflected in favourable agro-climatic conditions, cultivation of a large number of different agricultural crops, quality and uncontaminated agricultural land, products of excellent quality and tradition, a large number of indigenous and original products, tradition of production, knowledge and efforts of agricultural manufacturers. However, agricultural potentials have not yet been fully exploited. The most important place in plant production is the production of cereals, especially corn cereals, which is the main crop used in animal nutrition and wheat as the most important bread grain, then the production of fodder plants, then potatoes, vegetables (cucumber, tomato, paprika, cabbage), fruit (plums, apple, pear), berries (raspberries and strawberries), grapes, and industrial crops such as rapeseed, soybeans and tobacco.

Dairy production is the leading and most important livestock production, followed by meat production, such as beef, poultry meat, pork and sheep meat, eggs, wool and honey.

Fish farming is also one of the important industries, especially when it comes to breeding and production of trout and carp.

A significant resource of Bosnia and Herzegovina is forest land. Forest wealth according to official data puts Bosnia and Herzegovina among forest countries in Europe (depending on the source of data, forests account for 55% or 63% of the total area of ​​BiH), whose landscapes are characterized by natural forest ecosystems and, viewed from the economic, ecological and sociological aspect, make a strong stamp on economic development and the standard of citizens.

According to the OECD classification, rural areas make up about 81% of the total area of ​​BiH, where according to estimates lives about 61% of the total population of BiH. The characteristic of rural areas in BiH is poor development and facing many problems, especially poor infrastructure, depopulation and incapacity for work. On the other hand, these areas have natural resources and rich cultural heritage and other benefits that are considered the basis of rural development. Therefore, the revitalization, development and diversification of activities in rural areas are an essential process that will lead to the revival of rural communities and the sustainable development of rural areas with economic and environmental sustainability

BiH's policy in the agricultural, food and rural development sector has evolved in the past years in line with the goals and needs for preparations and accession to the European Union. EU membership strategy and plans include progressive steps to harmonize and integrate laws, institutions and industrial practices with those in the EU. A special challenge is the adoption and application of EU Acquis Communautaire regulations in the areas of agriculture, rural development, veterinary, phytosanitary and food safety policies, which comprise more than 27,000 regulations of varying degrees of commitment. This is a priority task and of particular importance for agricultural production in BiH, because it essentially represents the creation of opportunities for development of the agricultural sector and  development of rural areas, as well as export of agricultural products to the EU market by meeting the safety standards in food trade. Also, equally important priority is the establishment of a mechanism for decentralized management of IPA funds and creation of an operational structure for the use of pre-accession assistance for agriculture and rural development (IPA RD).

According to the latest BiH Progress Report for 2016, the realization of key priorities for progress in the context of European integration and the implementation of reforms in the field of agriculture and rural development is still at an early stage, although some progress has been made in the area of food safety, veterinary and phytosanitary policy.

In general, in the forthcoming period, an important priority for the agricultural and food sector in Bosnia and Herzegovina is creation of modern policies and introduction of instruments that will enable dynamic restructuring and modernization of the agricultural sector, as well as effective approximation to the EU through gradual policy alignment with the principles of the Common Agricultural Policy European Union.