The agrifood sector, a solid pillar of the country's economy

The share of the agricultural sector in the overall GDP of Bosnia and Herzegovina stands around 10% and is decreasing, however agriculture still remains one of the most important economic sectors in the country, providing food security for a significant part of rural population. Out of total area of 5, 113 million hectares of the country, 47% represents agriculture land. Bosnia and Herzegovina is relatively poor in agriculture resources: large parts of the country are mountainous (66% of territory is considered mountainous or hilly), only 20% (approx.1.0 million ha) is suitable for intensive farming.

The structural of agriculture is sector is characterised by small sized family farms which to large extent produce for home consumption – over 50% of agriculture holdings are estimated to be less than 2 ha; the state firms, generally much larger, are mostly not operating or in difficulties often due to not finalized state of privatisation. Agricultural production is dominated by crop production, with livestock production representing less than one third of the total output.

Room for Improvement

Due to an agrifood industry with a very fragmented structure and fraught with small producers, it is essential to facilitate constant innovation in the country to foster internationalization and competitiveness.