IJERD – International Journal of Environmental and Rural Development (2013) 4-1

Research article
erd

Development of Organic Animal and Crop Production in
BosniaNOUREDDIN DRIOUECH
Mediterranean Agronomic Institute of Bari (CIHEAM-MAIB), Bari, Italy

VESNA  MILIĆ
Faculty of Agriculture, University of East Sarajevo, East Sarajevo, Bosnia and Herzegovina

HAMID EL BILALI
Mediterranean Agronomic Institute of Bari (CIHEAM-MAIB), Bari, Italy

ALEKSANDRA DESPOTOVIĆ
Biotechnical Faculty, University of Podgorica, Podgorica, Montenegro

JASMINA SIMIĆ
Cooperative Union of the Republic of Srpska, Banja Luka, Bosnia and Herzegovina

SINISA BERJAN*
University of East Sarajevo, East Sarajevo, Bosnia and Herzegovina
Email: sinisaberjan@yahoo.com

MIRKO KULINA
Faculty of Agriculture, University of East Sarajevo, East Sarajevo, Bosnia and Herzegovina
Received 18 December 2012

Accepted 27 March 2013(*Corresponding Author)

Abstract About 35 million hectares of agricultural land are managed organicallyworldwide by 1.4 million producers. Bosnia has a big agro-ecological potential and natural
capital for organic production (OP) as traditional small-scale agriculture can be easily
converted to organic. Agricultural land covers 50% of the total area. The paper aims at
giving an overview of the current situation of the Bosnian organic sector especiallypotential, animal and crop production, governance, legal framework and market. Somesolutions to overcome the main barriers to OP development are discussed. The paper isbased on a secondary data review and exploratory semi-structured interviews - dealing
mainly with reasons for converting to organic; marketing channels; problems; impacts;
access to agricultural extension - conducted in July 2012 with 20 organic producers from
Sarajevo, Banja Luka, Mostar, Bihac, etc. Organic area represents less than 1% of the total
agricultural area. Plant production - mainly cereals - is more significant than animal
production. Wild collection plays an important role. The complex political structure
renders organic sector governance difficult. There is no national action plan and nonational law on OP was enforced. Only the Republika Srpska entity has a law on OP.
Organska Kontrola is the first local certification body. The organic movement isexperiencing new dynamics, pushed by farmer and consumer associations and market
actors. Organic market is relatively young and small. Supply chains are generally short.
Two marketing channels grow slowly: direct selling (on-farm, farm gate, green/farmer
markets) and conventional retail. Certified organic products are exported primarily to theEuropean Union. Further organic sector growth is more than likely. OP represents a valid
instrument for sustainable natural resources management and rural development. For
allowing organic farming to express all its potential domestic market should be developed;
legal framework and governance enhanced; and institutional and financial support secured.
Keywords organic farming, extension, organic market, BosniaⒸ ISERD

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INTRODUCTION
Thirty-five million hectares of agricultural land are managed organically by almost 1.4 million
producers especially in Oceania (12.1 million ha), Europe (8.2 million ha) and Latin America (8.1
million ha) (Willer and Kilcher, 2010). In Western Balkans Countries (WBC) the debate on organic
agriculture development is taking place, with the involvement of public and private actors, withinvarious cooperation projects and consultation networks operating at different levels (MAIB, 2008).
Organic markets in the WBC in general and in Bosnia and Herzegovina (BiH) in particular are,compared to some of the organic markets in Western Europe, relatively young, very small and in an
early stage of market development (Renko et al., 2010). During the last years, domestic market
actors and their associations as well as foreign market actors and policy makers often pushed theorganic sector evolution with regard to different aspects: official regulation, certification andlabeling of organically produced and processed products. Significant influence on organic
movements in most WBC countries comes from the legal framework of the EU (Renko et al., 2010).
Bosnia and Herzegovina consists of two governing entities namely the Federation of Bosnia
and Herzegovina (FBiH) and Republika Srpska (RS). Agriculture share in GDP was 8.1% in 2011
(EC, 2012). Agriculture employs a fifth (20.6%) of the total labor force i.e. 167,000 persons(ASBiH, 2012). Agricultural land covers 50% of the total area (MoFTER, 2009). Bosnia andHerzegovina has good preconditions for organic animal and crop production and wild collection(Dimitrije and Tomic, 2010; Renko et al., 2010) but a series of problems hinder further
development of the sector.
OBJECTIVE
The paper aims at giving an overview of the current situation of organic farming in Bosnia andHerzegovina.
METHODOLOGY
The work is based on a secondary data review and exploratory semi-structured interviews. The
main secondary data sources were ministries, specific organic statistics, certification bodies,professional organizations, the International Federation of Organic Agriculture Movements(IFOAM), the Mediterranean Organic Agriculture Network (MOAN), etc.
Semi-structured interviews (SSI) were conducted in July 2012 with 20 organic producers
randomly chosen from nine cities/municipalities all over BiH: Sarajevo, Banja Luka, Mostar, Bihac,
Ribnik, Petrovac, Kozarska Dubica, Knezevo and Konjic. The checklist prepared for SSI included
33 questions dealing mainly with: reasons for converting to organic farming; organic animal andcrop production as well as beekeeping; main marketing channels; problems and constraints; maineconomic, social and environmental impacts of organic agriculture; access to agricultural extension
and subsides; main sources of information about organic agriculture; involvement in organic
agriculture projects and initiatives; social capital of organic producers; collaboration and contact
with other institutions and actors (e.g. certification bodies; public institutions; research institutes;
donors); etc. Some solutions and recommendations to overcome the main barriers to organic
production development provided by the interviewed organic operators are discussed.
The average age of the interviewed organic operators is 46.4 (age range: 27-80). Almost allinterviewees (90%) are men. Among the interviewees there are no illiterate, half of them (50%)
have secondary education while 20% of them have high education. The surveyed rural households
generate income mainly through farming, pensions and salaries from the public sector. Farm
surface ranges from less than one to about 100 hectares. Land use is dominated by arable land andpermanent grassland and grazing land while land surface dedicated to organic permanent crops,
aquaculture and apiculture is quite limited.

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RESULTS AND DISCUSSION
Bosnian agricultural production is more traditionally oriented, and the use of pesticides is lower
than elsewhere in Europe (Stanojcic-Eminagic, 2010; EC, 2009). There are also few industrial
polluters (Stanojcic-Eminagic,  2010).  In  fact,  only  20%  of  BiH’s  agricultural  surface  is  suitable  for  intensive  farming  (EC,  2009).  Because  of  the  low  consumption  of  fertilizers  and  pesticides,  BiH’s  traditional small-scale agriculture can quite easily convert towards organic farming (Renko et al.,2010). The average farm size is 3 ha. Large parts of the country are uncultivated land or forests
while two thirds of the territory are considered mountainous or hilly. Wild collection of fruits,
herbs and mushrooms is an important traditional activity (Dimitrije and Tomic, 2010). Additional
advantages are the relatively low labor costs (EC, 2009).
The exploratory field survey showed that the main reasons for converting to organic farming
are: economic profit; personal satisfaction; environmental protection; and healthy production. Theinterviewed organic operators believe that organic agriculture bring multiple benefits. Some of theinterviewees (15%) consider that organic agriculture has not brought about any economic impacts.
They   very   likely   refer   to   their   household’s   financial   situation.   Nevertheless,   most   of   the  interviewees consider that organic agriculture has generated multiple economic benefits to theirrural households and communities. These include higher prices (premium prices) and income,lower production costs and local economy revitalization. The main social impacts of organic
agriculture are social capital strengthening; better relationship with neighbors; and increased
membership in cooperatives and associations. The main environmental impacts are reduced soil
and water pollution and the conservation of biodiversity (e.g. local and traditional varieties).
Organic agriculture is at an early stage of development in BiH and there are no national
standards yet being enforced. A national Law on Organic Farming is in the phase of adoption. The
law  is  fully  harmonized  with  the  new  European  Union’s  regulations  on  organic  farming  (834/2007  and 889/2008). Currently only in the Republika Srpska a Law on organic food production exists.
Organska   Kontrola   (OK)   is   the   first   certification   body   in   BiH,   established   in   2004   by   the   “OK  Association”.  OK  has  developed  organic  certification  standards  in  accordance  with  the  IFOAM’s  basic standards and EU regulations (Dimitrije and Tomic, 2010). The certification bodies
mentioned by the interviewees are OK, ECON, ECOline and BeHaBioCert.
In BiH, organic area is 200-400 ha which represents less than 0.1% of the total agriculturalarea. The number of organic farmers is about 300. The average organic farm size is 1.2 ha. Morethan 440,000 ha are certified as surfaces for wild collection of medical and aromatic plants, andmushrooms. Wild collection makes up a significant share of total organic sector. Production isgeographically concentrated in Sarajevo region, central Bosnia region, Herzegovina region andnorth-western Bosnia. These regions are suited for wild collection (Dimitrije and Tomic, 2010).
All the interviewed organic operators were crop and animal producers. Nevertheless, some ofthem deal also with other activities such as beekeeping or over other part of the supply chain e.g.
processing and direct sale. There was also a fish producer. The field survey showed that a wide
range of crops is grown organically in BiH. The most common organically grown crops are: pepper,
onion, potato, tomato, linseed (common flax), rye, maize, buckwheat and barley. As for livestock,
the most important reared species are pigs, bovines, sheep and chicken. The interviewed organic
operators have about 80 beehives.
A relatively well-organized supply chain already exists for export high-value organic products
such as medicinal herbs, honey, berry fruits and wild collection products; that are sold on European
markets (MAIB, 2008). The major exported Bosnian organic products are tea, dried mushrooms,
dried forest fruits, essential oils and raw plant material (sage for teas). Approximately 50-60
products of different kinds of herbs and tea are also being produced and exported, mostly towestern European markets. The main imported organic products in BiH are Kiwi, biscuits, juices,various flours and meals, and pasta (Dimitrije and Tomic, 2010).
Organic food processing started in 2001 mainly based on essential oil production, forest fruit
processing (mushrooms, berries, cranberry, blueberry, rose hip, etc.). The sector is still underdevelopment and involves some 20 small and medium enterprises (Dimitrije and Tomic, 2010).
The main processing activities of the surveyed organic operators include flour production (rye,Ⓒ ISERD198

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wheat, maize, buckwheat); production of wine (blackberry), liqueur (blackberry) and rakija(blackberry); oil extraction; jam and fruit juice production; bakery; etc. Some of them deal alsowith bottling and packaging.
The organic market in BiH is very small mainly because of the low purchasing power of the
population. It is estimated that only around 3% of the population can afford buying organic
products (Stanojcic, 2004). In some cases producers sell their certified organic products atconventional prices. This is foremost the case for all unprocessed items of agriculture and wildcollection. Furthermore, the so-called healthy food is often misinterpreted as organic food. The
organic sector production is still very small and therefore the supply chains are not developed. The
organic market represents only about 0.4% of the total food market value. However, according tosome sources, the organic market in BiH is growing at an annual rate of 10 to 20%. Organic
wholesale is at the beginning of development. Specialized outlets for organic products do not exist.
Generally, the distribution channels for organic products in BiH are: conventional supermarket
chains (Mercator, Tempo); drugstores; pharmacies (herbal teas); green markets in Sarajevo, Banja
Luka and Mostar; and direct selling (Dimitrije and Tomic, 2010). The main marketing channel usedby the interviewed organic producers is on-farm   direct   sale.   However,   also   farmers’   market   and  wholesale to processors are relevant. Other marketing channels include box schemes.
Most of the interviewed organic operators (75%) think that the decision to convert to organic
was appropriate as production of healthy food is a good way to increase household income and to
make agricultural production more sustainable. Nevertheless, it is important to consider that 15%of the interviewees answered that they regret that decision. That is, according to them, mainly due
to the current conditions in BiH making organic agriculture not sustainable. The main problem
faced by the interviewed organic operators is the lack of support from municipalities and otherpublic institutions. They mentioned also other constraints such as very rigid regulation; high pricesof organically allowed inputs; high certification costs; difficulty to find organically allowed inputs
on the market; marketing/sale difficulty; pollution and negative externalities caused by neighbors;lack of training on organic farming; and low prices of organic products. Other problems include
lack of financial resources and difficult access to credits; market insecurity and demand volatility;
weak organization at the state level; irregular and delayed payments; and problems with pests andclimatic disasters. Organic prices are only about 20% higher than prices paid for conventional
products; which does not allow covering higher production costs.
A series of major problems still constitute hindering factors for further development of theorganic sector: lack of information about organic products; the distrust to the information on thelabel; lack of promotional activities; little acceptance of paying price premiums for organic
products; low availability of the organic products; and lack of domestic supply chains. Hinderingfactors include as well the strong export-orientation of the supply chains, insufficient domestic
infrastructure, lack of expertise among farmers and processors, and costly and complicatedcertification (Renko et al., 2010).
According to the organic operators, institutions that should make more efforts to solve theproblems they face are: the State, municipalities/cantons, entities, cooperatives, and the extension
service. Other interviewees pointed out that it is necessary to increase engagement of scientificresearch institutions to demonstrate the benefits of organic farming in order to attract relevant
institutions and foreign investors. It is clear from the provided answers that a concerted effort ofmany institutions is necessary.
All organic operators in the RS declared that they received subsidies. In the FBiH only someorganic producers have access to subsidies and incentives. The main subsidies and incentives
needed by the interviewed Bosnian organic operators change from an entity to another. In the FBiH
they are mainly related to easier access to funds and loans with low interest rates. Also in the RS
the same type of incentives is needed. However, additional requests concern support for getting
financial subsidies; supporting organic farms mechanization (cf. weed management); and support
for storage, processing and irrigation facilities. They also insisted on the fact that the new Law onorganic farming should be enforced as soon as possible.
As for the social capital of organic operators, 70% of the interviewees are members either ofassociations (e.g. Animal Husbandry Association) or cooperatives (e.g. Ecoline, ECON, Sunce,Ⓒ ISERD

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Tresnja). It should be highlighted that 15% of the interviewed organic operators are members ofboth of them. Some organic producers are also members of other participatory and civil society
groups or organizations such as hunting associations.
Two fifths of the interviewees do not have any ongoing collaboration with other institutions.
The remaining deal with many institutions depending on where they operate (FBiH or RS). All inall,   organic   operators   deal   with   the   following   institutions:   municipalities;;   entities’   ministries   of  agriculture; cooperatives (e.g. Ecoline, ECON, Sunshine and Cherry Product); research institutes(e.g. Agricultural Institute at Butimir (Sarajevo); Agro-Mediterranean Faculty (Mostar); Institute ofAgriculture in Bihac; Institute for Agriculture in Unsko-Sanski canton (FBiH); Agricultural
Institute of the Republic of Srpska); certification bodies (e.g. OK; BeHaBIOCert); extension
service; etc. Some of them have contacts with organic producers from other countries e.g. Croatia.
The interviewees get information about organic agriculture through attendance of courses andconferences or via the Internet; TV; trips and visits to other organic farms; magazines andnewspapers; and the radio. Other information sources include friends and professional advisers.
The high percentage of organic producers that rely on these alternative information sources can be
explained by the fact that only less than a fifth on the interviewed organic producers (15%) has
contact with the agricultural extension staff and uses services provided by them. Used extension
services and information are related to production methods, optimal sowing and planting time,
agro-technology and animal husbandry. According to MAIB (2008), most organic producers andprocessors in the WBC complain about the lack of adequate extension and advisory services which
are crucial for the well-functioning of the whole supply chain. The creation and improvement of
supporting structures and services for production and market development is crucial.
Almost a third of the interviewees (30%) do not know anything about organic agriculture
programs and projects while only 15% of them have been involved in previous ones. Donors,
governmental and non-governmental organizations have been active in supporting the organic
sector.   Currently,   a   project   called   the   “Development   of   Organic   Agriculture   in   BiH”   is   being  supported by the Swedish International Development Agency (SIDA) (Dimitrije and Tomic, 2010).
The interviewed organic producers provided many recommendations for fostering thedevelopment of OA in BiH: better organization at the state level; improving protection of organic
producers’  interests;;  increasing  state  and  public institutions’  assistance  and  support;;  better  access  to  markets; better market control; increasing organic producer income through guaranteed premium
prices and subsidies; increasing awareness about the safety and quality of organic food products;
increasing availability of organic inputs; simplifying certification procedures and reducing
certification costs; and increasing involvement of public and civil society organization in theorganic sector. In particular, agricultural research and scientific institutes should help organic
farmers by exploring new possibilities of application of various plant-based pesticides, in order toreduce the use of harmful chemicals, as well as the selection and breeding of crop varieties that are
more adapted to local conditions (climate, soil, pests, etc.). These can include also autochthonous
varieties thus contributing to biodiversity conservation.
In BiH there is a need to enhance understanding and provide more information on the wholeconcept of organic agriculture production and also to secure institutional and financial support todevelop the sector. There is also a need to raise public awareness to appreciate the positive
externalities  of  organic  farming.  This  should  be  done  through  media  promotion,  and  farmers’  fairs  and local markets organization (Dimitrije and Tomic, 2010). Options and solutions to overcome themain barriers to the development of organic agriculture include as well (Renko et al., 2010):
organizing producers in associations and cooperatives; know-how transfer; teaching organic
farming in schools and universities; encouraging vertical and horizontal integration in the supply
chain; fostering aggregation; clarifying labeling and certification procedures; and providing online
information. Strengthening intra-WBC cooperation, exchange and networking is also a highly
appreciated area of intervention. Better and thoughtful synergy in policy-making processes could
foster the mainstreaming of organic agriculture and integrate its future development trajectories
into the wider rural development context and dynamics. The role of the state as well as national
movements is important in the development of the organic sector (MAIB, 2008).
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CONCLUSION
Further growth of the organic sector is more than likely as Bosnian organic producers are highly
motivated and committed. BiH has all the natural prerequisites for organic food production butvery  important  is  farmers’  willingness  to  produce  organic  food  and  consumers’  willingness  to  pay  premium prices. Bosnian organic market is relatively young and small but is dynamic and linked up
internationally. The scope of production is very wide, with a lot of different products, but often
small quantities. Wild collection plays an important role in the overall organic raw material
production, mostly dominating the agricultural production. Furthermore, plant production is moresignificant than animal production. Organic food processing sector has been improved in terms ofquantity and quality. Supply chains are generally short, with much direct selling on the domestic
market. Domestic supply chains do often still have pioneer character and are still in an early stageof development. Producers and consumers are often aware of organic farming benefits andconsumption trends are in favor of the sector. However, the development of the organic sector ishindered by many problems. Due to the complex politico-administrative situation of the country, aharmonized national legal framework for the organic sector still does not exists.
There is a need to enhance understanding of the whole concept and philosophy of organic
agriculture and also to secure the state institutional support as well as domestic and foreigntechnical and financial assistance. In order to raise public awareness the concept of organic foodproduction needs to be promoted amongst general public especially women and young people. The
practices of organic production, handling and processing and the quality of products have still to be
improved. Diffusion of organic good practices requires innovative ways for organic-specificknowledge generation and dissemination and long-term investments especially in the agricultural
education-research-development-extension system. Moreover, organic product diversification andstructuring of related supply chains is needed to foster further development of organic agriculture.
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