MEATS AND LIVESTOCK

The chart below illustrate the quantities of meat and meat products 1 imported into FBiH to make up the projected shortfall listed in Table 3. Official imports exceeded !""" metric tons with a #alue of
IMPORTS TO FBiH OF MEATS AND MEAT PRODUCTS, 1999
5,000,000 4,500,000 4,000,000 3,500,000 QUANTITY IN Kg 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 ST R IA BE LG IU M C R O C A Z TI R A EP U BL D IC EN M AR D FK K IS EL JA K FR AN C G E ER M AN Y H O LL AN H D U N G AR Y N IT ET A H LY ER LA N D S PO LA N SL D O EN IA SP AI N

PORK PRODUCTS PORK MEAT PRODUCTS MEAT INTERNAL ORGANS FROZEN KANGAROO MEAT BEEF PRODUCTS BEEF PARTS BEEF

AU

COUNTRY OF LOADING

$% &" million compared with the %inistr'(s estimate of a )!*)+ 3 metric ton shortfall in this cate,or'. - si,nificant portion of these imports consists of fro.en beef from -ustria! /roatia! and 0lo#enia. The other cate,ories depicted on this chart consist of a wide assortment of prepared meat products such as salami and sausa,es! but primaril' fro.en beef and pork. One will note a ,eneral cate,or' of 1meat2 which is the onl' description pro#ided on the import documents. 3n order to limit the sheer number of products some specialt' items such as 1canned meats2 ha#e been combined into this cate,or'. 3t is interestin, to note that there were 3"4 ton of 1fro.en kan,aroo meat2 imported which presumabl' went into the manufacture of meat products where its identit' would be lost. -dditional details includin, #alue in $% of these imports are contained in Table 1! in -ppendix -. Livestock 3n addition to the meat and meat products charted abo#e an e#en lar,er quantit' of li#estock were imported to FBiH durin, 1***. O#er 35!""" ton
1 2

Customs and Fiscal Assistance Office (CAFAO) DFKiseljak refers to the Duty Free Zone - Kiseljak !ee "a#le $ %a&e '(

of li#estock excludin, those identified as breedin, stock! horses and other non6food cate,ories are depicted in the chart below. The lar,est sin,le cate,or' is beef cattle from -ustria! 7erman'! Hun,ar'! and 8oland. -lthou,h man' of these animals were likel' inputs to finishin, operations! man' were likewise destined directl' for the slau,hterhouse. From this data it appears that the %inistr'(s estimates of imports of meat and meat products are on the low side. 3t should also be pointed out that althou,h this le#el of statistical detail is a#ailable onl' for the Federation! the customs office in the 9epublic of 0rpska reported imports of 5!344 ton of meat and meat products for this same period! but did not break down the imports b' countr' of loadin,.
IMPORTS TO FBiH OF LIVESTOCK, 1999
1!,000,000

14,000,000

12,000,000

QUANTITY IN Kg

10,000,000

",000,000

!,000,000

SHEEP PIGS OTHER LI ESTOCK LI E FISH CATTLE

4,000,000

2,000,000

AU ST RI A CR O AT IA CZ EC H R EP G ER M AN Y HO LL AN D HU N G AR Y IT AL Y LA ND AN IA DS AK IA EN IA IT ZE RL AN D S# ER LA N

PO

SL O

COUNTRY OF LOADING

The above data suggests that more than 50% o the meat !onsumed "n #"$ "s "m%orted& %rodu!ts '"th a tota( va(ue o KM )*)+,--.5-/ and th"s data re%resents on(0 the 1(ega(2 "m%orts. Con!(us"on: In terms of what might be expected in the area of business development for the meat sector, it appears that there is ample room for growth. The question of production cost and quality will be the determinants as to how much of these imports can be replaced with domestic production. E3%e!ted Trends :i#estock and meat production can be di#ided into four phases; <1= breedin,> < = ,rowin,> <3= finishin, or fattenin,> and <)= slau,hter.

NE TH

SL O

RO

3t is a well accepted fact that the breedin, herds were decimated durin, the war and attempts b' donor a,encies to rebuild these b' donatin, bred heifers and cows has met with limited success. 3n most cases! onl' one or two animals were donated to a famil' resultin, in an inefficient use of labor and often the animals were slau,htered and consumed as a necessit'. The breeds introduced were not necessaril' the best suited to BiH conditions and were often surplus to the needs of the donatin, countr'. There is no extension ser#ice a#ailable to the farmers to educate and train them in impro#in, their pastures! the use of artificial insemination to impro#e performance! proper time for weanin, cal#es! etc. ?er' little or no increases in production in this phase is foreseen because most donor a,encies ha#e made their contribution to BiH and are mo#in, on to other 1crisis2 areas such as @oso#o and credit lines for this t'pe of production are #irtuall' non6existent. /onditions in BiH are well suited to the ,rowin, phase of li#estock production with 5"!""" hectares of meadows for ,ra.in, and ha' for winter feed. This phase usuall' takes about one 'ear from the birth of the calf until it reaches a wei,ht of 3"" k,! the ideal input wei,ht for the finishin, phase. The lack of mana,ement of the pasture resources markedl' reduces the quantit' and qualit' of fora,e produced at the expense of animal nutrition and production. $ue to the hi,h cost of fertili.er and the #er' limited use of supplemental feedin,! this phase of production is also not expected to impro#e o#er the next fi#e 'ears. The finishin, phase is a period in the production c'cle when attention to animal health and nutrition can compensate for some of the mismana,ement in the pre#ious phases. %ost cattle finishin, <fattenin,= operations are currentl' found in the 90 where there is domestic production of mai.e and other cereal ,rains required in this phase. -lthou,h production of cereal ,rains in the 90 from 1**1 to 1**4 increased ).&A)! in terms of area planted! lar,e quantities of corn and so'beans continue to be imported from 0erbia and Bastern Burope to meet requirements. The finishin, phase is ,enerall' carried out in a totall' enclosed en#ironment and as a result! these operations tend to be small <1" to 1"" head=! albeit some of the state6owned farms ha#e facilities housin, o#er 1!""" head of cattle and lar,er numbers of swine. 8erformance in these operations is ,enerall' substandard when compared with Burope and other de#eloped countries in terms of a#era,e dail' ,ain and cost of ,ain due primaril' to a lack of attention to animal nutrition and proper conditionin, of feed in,redients. 0lau,hterhouse operations and the manufacture of meat products ha#e been! until recentl'! primaril' the domain of state6owned companies. 0ince 1**&! a few pri#ate plants ha#e been able to obtain the lar,e credit lines necessar' to build and operate these facilities and appear to be competin, effecti#el' in the market. Im%a!t to #D45 In all phases, osnian agro!enterprises are underdeveloped and under capitali"ed. The better managed enterprises

'

A +edium-"erm A&riculture !ector !trate&y for the Federation of ,i-

remain good #$ assistance pro%ects. There is plenty of room for growth by the more sophisticated domestic firms.

E3%ort O%%ortun"t"es There appears to be #er' little opportunit' for exports in this sector with the exception of nei,hborin, countries that were part of the Former Cu,osla# 9epublic <FC9=. This is due to; <1= the projected production short6fall of approximatel' )"!""" tons annuall'> < = the lack of an' #eterinar' certification pro,ram andDor le,islation to brin, standards in line with BE re,ulations> and <3= the h',ienic and sanitar' conditions of slau,hterhouses and meat plants. There is at present no uniform animal health le,islation between entities and the laws currentl' on the books are carried o#er from the re,ulations of the F9C and are outdated. -lthou,h new re,ulations meetin, BE minimum standards ha#e been drafted with the help of donor or,ani.ations! the %inistr' of -,riculture has not accepted these draft proposals and continues to thwart the efforts of the international communit' to enact necessar' re,ulations. 3t seems unlikel' that an' s'stem will be put in place in the near future without inter#ention from OH9. Fith recent outbreaks of disease in 7reat Britain(s li#estock herds and the subsequent bans on importation of their beef b' France and 7erman'! it is unlikel' that meat products produced under the conditions pre#alent in BiH will find their wa' to export markets in an' substantial quantities. The /entral 0tatistical Office! 0araje#o reported exports of !+1 tons of pork! #eal! beef! and mutton for 1**4 #s. imports of 4!)+) of these same products. These e3%orts are ("6e(0 rom L"7anov"! Com%an0 "n $er8egov"na that "s "m%ort"ng meat rom a(( over the 'or(d+ ma6"ng %re%ared meat %rodu!ts and re9e3%ort"ng a %ort"on o the"r %rodu!t"on+ %r"mar"(0 to Croat"a. Im%ort :e%(a!ement O%%ortun"t"es The chart below depicts per capita meat consumption b' t'pe of meat in selected middle income countries in the re,ion. 3t can be readil' seen that consumption in the two entities! FBiH and 90! in 1**& is about one6half of the pre6war le#el! thus additional e#idence that there is ample room for ,rowth in the domestic market. This market represents @m 1)1 %illion in imports in 1*** . The o%%ortun"t"es or re%(a!"ng some o these "m%orts are ("m"ted on(0 b0 the ava"(ab"("t0 o !red"t and the ab"("t0 o %rodu!ers to mar6et a ;ua("t0 %rodu!t "n the a!e o st" "m%ort !om%et"t"on. Strengths The resources are there G there is adequate pasture and fora,e for #astl' expandin, the production of li#estock. 8lanted area of mai.e and other cereal ,rains required for finishin, the animals is on the increase.

1/

$emand for the product is there as e#idenced b' the tremendous quantit' of imports. :imited protection for the industr' exists in the form of a 1"A tariff on imported li#estock for slau,hter and on finished meat products. There is room for ,rowth in the market from both increased population and increased per capita consumption. Constra"nts :imited a#ailabilit' of credit for small farmers and li#estock operations. :ack of awareness of animal nutritional requirements and animal health. Ho extension ser#ice a#ailable for trainin, and educatin, producers in newer methods and technolo,ies that would lead to lower costs
Meat C !"#$%ti ! Le&e'"( Se'e)te* Mi**'e I!) $e C #!t+ie"
120

100

P)'+213 P)14 M'22)/ 5 G),2 B667 5 6,+

"0

Kg0Ca%ita

!0

40

20

0 B$H 1%%0 FB$H-1%%& RS1%%& Y'()*+,-$, 199, Data E-)e%t ./e+e I!*i)ate* R).,/$, P)+,/0 C1),2$,

of production and hi,her qualit' meat. %an' feed companies do not label their products concernin, in,redients! protein and mineral content etc. 3ndependent laboratories are not readil' a#ailable for testin, and the tests are expensi#e. Farmers are inclined to bu' the cheapest feed a#ailable assumin, that it is 1all the same2. -s a result animal performance is less than ideal resultin, in hi,her per unit costs coupled with poor qualit' further limitin, the likelihood of an' real export market. :ittle or no research is bein, conducted on impro#ed pastures! impro#ed breeds! impro#in, animal husbandr' practices amon, the producers. :ittle concern for food safet'. 9arel' does one find the workers wearin, protecti#e hair nets andDor ,lo#es when handlin, raw meat. -t present there is no 1national2 #eterinar' certification pro,ram a requirement for export of meat products to an' BE countr' and most other countries with the exception of /roatia. 3ncidences of disease outbreaks often ,o unreported to national or Buropean a,encies responsible for

11

trackin, these outbreaks and ensurin, that the disease infected area is 1contained2.

12

-lthou,h there is a ,eneral awareness in BiH of the ad#anta,es of obtainin, one of the #arious 30O certifications as part of a qualit' assurance pro,ram! there is #er' little attention ,i#en to H-//8 procedures. This qualit' assurance pro,ram is somewhat more rele#ant to the food processin, industr' in that it is a preventive s'stem for assurin, the safe production of food products. Ender such a s'stem when it becomes e#ident that a de#iation has occurred! appropriate steps are alread' in place to re,ain control and to ensure that no potentiall' ha.ardous products reach the consumer. There is no known instance of a slau,hterhouseDmeat plant within BiH that has installed a Ha.ard -nal'sis and /ritical /ontrol 8oint <H-//8= procedure to ensure the safet' of their products. 3t should be pointed out that microbiolo,ical testin, alone as conducted b' most existin, operations is seldom an effecti#e method of monitorin, food safet' because of the len,th of time required to obtain the results. There are no national food safet' laws inte,rated with those ,o#ernin, the BE that would allow access to most markets. The operatin, equipment in man' companies is dated and in poor repair. In add"t"ona( to the o%%ortun"t"es or re%(a!ement o "m%orted meat and ("vesto!6 %rodu!ts d"s!ussed ear("er+ the !onstra"nts enumerated above %rov"de a host o o%%ortun"t"es or urther bus"ness deve(o%ment+ to '"t5 Cred"t ("nes or gra8"ng o%erat"ons Estab("shment o %r"vate nutr"t"ona( and an"ma( hea(th !onsu(t"ng serv"!es 4rov"s"on o $ACC4 tra"n"ng and adv"sor0 serv"!es Edu!at"on and tra"n"ng "n modern ("vesto!6 eed"ng< "n"sh"ng te!hno(og"es :esear!h and mode( arms Im%roved %asture grasses = management Su%%ort or "ndustr0 and trade asso!"at"ons Te!hn"!a( ass"stan!e %rograms a"med at trade a"rs Su%%ort or %r"vat"8at"on %rograms

:egu(ator0 Issues There are a number of re,ulator' issues that affect the food and a,ro6 processin, sector of the BiH econom'. First and foremost on the minds of the pri#ate entrepreneur is that ,o#ernment should pro#ide a 1le#el pla'in, field2! i.e.! that ille,al imports be stopped and that raw materials not be subject to customs and other tariffs if the final products are not equall' taxed. - case in point is the imposition b' the 90 ,o#ernment of a 1"A special tariff on imports of wheat in 1**4 but no additional le#' on flour. Thus the

state flour mills that were reportedl' informed of this ahead of time were able to purchase their wheat requirements before the announcement while the pri#ate mills had to pa' 1"A more for their wheat and compete a,ainst imported flour with no additional taxes. ! /op'ri,ht and trademark re,ulations are another important issue for domestic producers. %an' ha#e spent considerable sums and time in de#elopin, attracti#e labels desi,ns onl' to find pirate products in the shadow markets such as the -ri.ona market. The products are usuall' of inferior qualit' thereb' ne,atin, the work that the compan' has undertaken in buildin, a brand ima,e. Eniform #eterinar' laws between the entities and in con,ruence with those of the BE are also needed. The abilit' to export to the BE is se#erel' restricted and must usuall' be done throu,h some intermediar' firm located in a borderin, countr' that has access to the BE market. Often the price to the local producer is discounted b' as much as $% 1Dk,.

1'