FRUIT, VEGETABLE, AND DIARY SECTORS

INVESTMENT
PROFILE
Did you know?
BiH is among leading producers of raspberries (10th in the world) and plums (15th in the world)
Average market prices for raspberries and plums in BiH are the lowest among the top 10 producing countries
Small distance between major production areas in BiH, 100 km max
INVEST IN FRUIT, VEGETABLE, AND DIARY SECTORS
IN BOSNIA AND HERZEGOVINA (BiH)
Locations: City of Bihać and Municipalities of Bosanska Krupa, Bužim, Cazin and Velika Kladuša
Position of Bosnia and Herzegovina (BiH) in Europe
Official name
Geographic position
Area size, population
Administrative structure
Currency and exchange rate
Landform
Climate
2
INVESTMENT
PROFILE
Bosnia and Herzegovina (BiH)
South-East Europe, borders with Croatia (932 km), Serbia (312 km), and Montenegro (215 km)
51,209 km2 / 3.8 million
2 entities: Federation of BiH (FBiH) with 10 cantons; Republika Srpska (RS); Brčko District of BiH
Convertible Mark (BAM-official abbreviation; KM - in daily use)
1 EUR = KM 1.95 (fixed exchange rate)
Predominantly mountainous country with Dinaric mountains, the highest peak on the mountain
of Maglić, at altitude of 2,387 m. In the north, the Sava River created a fertile valley which is the
largest lowland vastness intersected by low mountains. The southern part has carst landform,
with access to the Adriatic Sea in the southwest, with 23 km of coastline.
Mountain climate, moderately continental climate, and Mediterranean climate with strong
annual variations of temperature and precipitation levels
INVEST IN FRUIT, VEGETABLE, AND DIARY SECTORS
IN BOSNIA AND HERZEGOVINA (BiH)
Locations: City of Bihać and Municipalities of Bosanska Krupa, Bužim, Cazin and Velika Kladuša
WHY INVEST IN FRUIT, VEGETABLE, AND DIARY SECTORS IN BiH?
• Bosnia and Herzegovina is ranked high on the global list of producers of raspberries (10th place), plums (15th place), and
strawberries (35th place), and it produces significant quantities of high quality vegetables: potatoes, peppers, cabbage, and
cucumbers.
• Abundance of fertile uncultivated and unpolluted land with favorable natural and climatic conditions, excellent soil quality,
longer growth/production season, and vast wealth of crystal clear water streams, opens opportunities for investors for high
quality agricultural production with low operating costs.
• Bosnia and Herzegovina currently processes far less than one quarter of its total milk production and with demand for dairy
products such as cheese, yoghurt and other milk probiotic products expected to rise by 20% over the next 5 years in the
region, the country offers an excellent opportunity for added processing. Companies such as Lactalis, Meggle, Danube Foods
Group BV, DACHSER GmbH & Co. KG, Intereuropa (Hellman Logistics), HIPP GmbH and Vitaminka (Kreis Industriehandel AG),
have already taken advantage of Bosnia and Herzegovina’s potential.
• Qualified labor force at competitive costs and positive experiences gained by already present investors in doing business in the region.
• Attractive geographic locations bordering the European Union and on directions East to West (Middle East - Mediterranean EU), and North to South (Scandinavian peninsula - Central Europe - Adriatic Sea), with an easy access to the markets of Russia
and Middle East, with steadily increased demand for fruits and vegetables over last 4 years.
• National treatment of foreign investors, VAT rate of 17% and corporate income tax rate of 10% amongst the lowest in the
region and in Europe, and a liberal foreign trade regime, render BiH attractive and price competitive location for your future
investment in the sector of agriculture and food processing.
• Fruits and vegetable sector reveals medium-term competitive advantage (compared to EU-27). HS 6-digit data revealed
Relative Comparative Advantage (RCA) for food products of 1.19 (share in exports 3.82%), vegetables 0.72 (share of exports
2.07%), offering potential investors good competitive position.
3
City of Bihać, and Municipalities of Bosanska Krupa, Bužim, Cazin,
and Velika Kladuša
• The locations covered by this investment profile are situated in the Federation of BiH.
2
1
Brcko District of BiH
Republika Srpska
3
4
Locations:
City of Bihać
and Municipalities of
Bosanska Krupa,
Bužim, Cazin
and Velika Kladuša
6
10
Federation of Bosnia and Herzegovina
Republika Srpska
Republika Srpska
Federation of
Bosnia and Herzegovina
Una-Sana Canton
-potential aggregation for easier
procurement of raw material
Bosnia and Herzegovina
Federation of
Bosnia and Herzegovina
8
9
7
5
Cantons
Brcko District of BiH
Municipalities
1. UNA-SANA CANTON
2. POSAVINA CANTON
3. TUZLA CANTON
4. ZENICA-DOBOJ CANTON
5. GORAŽDE CANTON
6. CENTRAL BOSNIAN CANTON
7. HERZEGOVINA –NERETVA CANTON
8. WEST-HERZEGOVINIAN CANTON
9. SARAJEVO CANTON
10. CANTON 10
Position of locations covered by this investment profile: City of Bihać, Municipalities of Bosanska Krupa, Bužim, Cazin, Velika Kladuša
and the Una-Sana Canton, in BiH
4
INVESTMENT
PROFILE
INVEST IN FRUIT, VEGETABLE, AND DIARY SECTORS
IN BOSNIA AND HERZEGOVINA (BiH)
Locations: City of Bihać and Municipalities of Bosanska Krupa, Bužim, Cazin and Velika Kladuša
Why invest in the locations:
City of Bihać, and Municipalities of Bosanska Krupa, Bužim, Cazin, and Velika Kladuša?
55,139
39,130
6,313
5,259
3,733
3,614
632,410
21,916
356,680
34,595
124,954
70,677
cow's milk
(000 liters)
cucumber
potatoes
green
pepper
plums
cabbage
Rest of BiH
Una-Sana Canton
Average yield per crops (in tons) in 2008-2013 – Una-Sana Canton compared with the remainder of BiH
• The locations at the very border with Croatia and the European Union and the border crossing equipped for inspection control
enable rapid transportation of fruits and vegetables to the EU countries, with low transportation cost.
• The locations in aggregation with the Una-Sana Canton have a high average growth rate in raspberry production (26%
over 2011-2013 period), the berry for which the average market price in BiH is the lowest among ten countries with largest
raspberry production.
• The locations offer suitable geographic and climatic conditions for growing nuts – walnut, hazelnut and sweet chestnut,
which are in demand on the European market. Rich yields of sweet chestnuts provide an opportunity to buy chestnuts through
a logistical chain and organize processing into added-value products.
• Soil quality permits growing of high-quality cucumbers and places these locations among the leading producing areas of
cucumbers in BiH, with a share of 15% of total output country-wide.
• Availability of business zones, industrial facilities and agricultural land for both greenfield and brownfield investments and
also investment in agricultural production.
• University-trained engineers who can assist in achieving growth and development of business in agriculture and foodprocessing industry is available at competitive cost. Unqualified labor could be engaged in the production cycle.
5
AGRICULTURAL CROP PRODUCTION
PRODUCTION VOLUME (2008-2013)* FRUIT/ VEGETABLES/ MILK
Cucumber
Green pepper
Cow milk (in thousands of liters)
Potatoes
Raspberry
Cabbage
Plums
Apples
Carrot
Strawberry
Pears
Average YIELD (tons)
3,614
3,733
55,139
39,130
344
5,259
6,313
1,599
528
152
389
Rank in BiH
2
3
5
4
4
5
5
8
8
9
10
*Una-Sana Canton
Average yield
per crop, 2008-2013
(in tons)
Average yield
per sub-sector, 2008-2013
(in tons)
Cow milk (000 liters)
55,139
Cucumber
3,614
patatoes/Potato
39,130
Green pepper
3,733
Plums
6,313
Cabbage
5,259
Raspberry
344
Carrot
528
Apples
1,599
Strawberry
152
Pears
389
687,549
556,697
52,264
236,289
8,798
227,491
fruit
Una-Sana Canton
6
INVESTMENT
PROFILE
55,139
INVEST IN FRUIT, VEGETABLE, AND DIARY SECTORS
IN BOSNIA AND HERZEGOVINA (BiH)
Locations: City of Bihać and Municipalities of Bosanska Krupa, Bužim, Cazin and Velika Kladuša
504,433
632,410
vegetable cow’s milk
(000 liters)
Rest of BiH
Una-Sana Canton
TRANSPORT INFRASTRUCTURE / LOGISTICAL CONNECTIONS
• The locations are situated at the very border with Croatia and the European Union, with a direct access to highways towards the
markets of the EU, Mediterranean, Central Europe, Turkey and Middle East.
• A cargo airport (Zagreb, Croatia/EU) and a seaport (Rijeka, Croatia/EU) are respectively 2 and 3 hrs of driving away, on average.
Transport
infrastructure
Border
crossings
City of Bihać and Municipalities of Bosanska Krupa,
Bužim, Cazin and Velika Kladuša
Distance
(in km)
Time required for
transport*
With Croatia/EU:
• Izаčić - international border crossings of Category I in road transport
(transport of persons, all types of goods, and transport means).
26-21
0h30-1h00
• Vеlikа Klаdušа - Category II international border crossings for road
traffic
02-39
0h04-0h45
• Karlovac – Zagreb highway (CRO), part of the highway A1 Zagreb –
Split – Dubrovnik (CRO), which constitutes a part of the Mediterranean
Corridor within the TEN-T transport network. Connection with the
highway A6 Rijeka – Zagreb (European route E65).
• European highway E-70, route Ljubljana (SLO) – Zagreb (CRO) –
Belgrade (SRB), part of the Corridor X highway
• Bihać (B&H)
• Karlovac (CRO)
• Rijeka (CRO)
• Ploče (CRO)
• Koper (SLO)
• Banja Luka
• Sarajevo - cargo airport
• Tuzla - with prospects for becoming a cargo airport
• Zagreb (CRO/EU) - cargo airport
53 -127
1h10-2h30
70-110
1h15-2h15
26-59
53-127
165-223
334-411
248-305
130-168
309-369
273-310
107-131
0h26-1h00
1h10-2h30
2h30-3h34
5h16-5h14
3h38-4h43
2h09-2h58
5h02-5h45
4h44-5h33
1h42-2h38
Over this border crossing it is also possible to transport fruit and vegetables that, in compliance with the
legislation of contractual parties, are subject to inspection of compliance with market standards and
determination of adequate health status in the course of transport over the common state border.
Source: Decree on Establishment of Border Crossings in Bosnia and Herzegovina („BiH Official Gazette“, no.
39 of 22 May 2012); The Treaty between Bosnia and Herzegovina and the Republic of Croatia on Border
Crossings and the Agreement between Bosnia and Herzegovina and the Republic of Croatia on Border Area
Traffic (19 June 2013)
Road
corridors
Railroad
Ports
Airports
*Not inclusive of the time for inspection controls at the border.
Source: http://www.viamichelin.com/
7
COMPETITIVE COSTS OF TRADE LOGISTICS (GENERAL INFORMATION)
TYPE OF COST
AMOUNT
1 Documentation for exporting
EUR 25-50
Confirmation that the fruits / vegetables were
2 cultivated in BiH (issued by the Foreign Trade
Chamber of BiH)
EUR 10 (for members of the Chamber)
EUR 25 (for others)
3 CEMT permit (category 2)
EUR 500 (category 1 permits are valid for Austria and Italy) or
EUR 250 (category 2 permits are valid for other country members of the
EU, except in Austria and Italy)
EUR 3 charge for submitting application
EUR 8 charge for issuance of the permit
Total:
EUR 510 (for Austria and Italy)
EUR 260 (for other country members of the EU)
4 Phyto permits
EUR 18
5 Sanitary permits
EUR 28
6 Per diem for drivers (counted per one tour)
EUR 50 (for the EU)
Refrigerated truck - average consumption: around 15 lit / 100 km (diesel)
7 Fuel
Price of fuel in Croatia (EU): around EUR 1.37 / lit
Zagreb - Rijeka - category IV: EUR 40 in one direction, or around EUR 0.26 per km
8 Roads toll
Source: Hrvatske autoceste (Croatian Highways), List of costs for vehicles in
category 4
Review of assessed general costs of trade logistics (permits for exporting fruits, vegetables, and milk and dairy from BiH; shipping and transportation costs)
Investment opportunities
These are investment opportunities offered by locations. The locations could advise on more specific greenfield, brownfield and
joint venture projects upon contacting them.
City of Bihać
Emdžad Galijašević, Mayor
City of Bihać
Bosanska 4
77000 Bihać
http://www.bihac.org/
Tel: +387 37 229 605 Mayor’s Office
+387 37 224 222 Switchboard
Fax: +387 37 222 220
http://www.bihac.org/
[email protected]
8
INVESTMENT
PROFILE
INVEST IN FRUIT, VEGETABLE, AND DIARY SECTORS
IN BOSNIA AND HERZEGOVINA (BiH)
Locations: City of Bihać and Municipalities of Bosanska Krupa, Bužim, Cazin and Velika Kladuša
Bosanska Krupa Municipality
Investment opportunity
1) Cold storage (for raspberries and
cucumbers)
2) Deep freeze (for raspberries)
3) Processing plant for fruit and
vegetables
CONTACT:
Municipality of Bosanska Krupa
Terzića bb
77240 Bosanska Krupa
Tel: +387 37 471 083
http://www.opcinabosanskakrupa.ba/
Emir Tatarević
Advisor to the Mayor for Infrastructure
Tel:
+387 37 471 088
Cell phone: +387 61 472 396
Detailed information
Type of investment: Greenfield
Land: Six plots are currently available in the „Pilana“ Business Zone (1,500m²; 1,900 m²; 2 x
2,000m²; 3,700m²; and 9,000m²). These land plots are property of the Municipality of Bosanska
Krupa, purchase is an option.
Cost: BAM 25/m²
On the plots it is possible to build production and business facilities. The surface area of a facility
cannot exceed 50% of the area zone of a plot (degree of construction).
Infrastructure (power, water supply, sewage system, telecommunications, roads):
Connections to existing infrastructure lines inside the business zone are provided against payment
of connection fees to utility companies.
Documentation: The documentation that should be obtained includes the urban planning
permit, construction permit and usage permit, other permits and approvals, a minimum of 90
days, depending on external approvals and licences that are not in the jurisdiction of the
Municipality.
Fees and charges:
- fee for construction land development: BAM 12/m² of the usable area of facility
- rent: BAM 12/m² of the usable area of facility
- land survey: 0.3% of the estimated value of facility
- shelter: 1% of the estimated value of facility
Investors are exempted from payment of 50% of the utility fee.
Labor force: Local labor market offers the full range of university- and secondary-school
graduates, and qualifed and unqualified workers.
Wages: Daily wage of an unqualified worker is 30 KM.
Estimated production cost per 1 kilogram of fruit/vegetables:
Crop: RASPBERRY
Mode of production: intensive, with irrigation, hedgerow farming system.
Vegetation period: April – October (130-140 days)
Final product: raspberry for processing, exploitation period: 15 years
Market orientation, product quality and quantity: high quality, high yield, maximum yield of
20t/hectare, average yield 15t/hectare, purpose exclusively for the market as raw inputs for
processing.
Capital investment for initial planting: BAM 20,000-22,000/hectare
Share of manual labor: very high, including hoeing up (twice), spreading the fertilizer, picking,
pruning, protection measures
PRODUCTION TECHNOLOGY
Planting the fields: in autumn, in spring, selection of plots, sampling and analysis of the soil
Basic cultivation: Plowing to the depth of 35-40 cm, with mechanization
Basic fertilizer treatment: depending on the results of the fertility analysis, 30t/hectare of manure
+ 600kg/hectare of NKP 10.20:30.
Supplementary cultivation: harrowing
Initial fertilization: 20t/hectare of manure + 400kg/hectare of NKP 7:20.30
Supplementary cultivation: hoeing with rotary hoes
Planting: manually
Installation of supports: wooden posts spaced every 6m in rows, two lines of galvanized wire
Installation of the irrigation system: drop-by-drop system
Care in the year of planting:
Periodic fertilization: 200kg of KAN in late April, before hoeing
Watering: after planting, through end-August
Surface cultivation: rows monthly through end-September, spaces between rows should be
harrowed or rotary hoed twice a month through end-September
9
Investment opportunity
Detailed information
Activities on the plantation during a year of full exploitation
Fertilization: 20t/hectare of manure, 500kg/hectare of NPK
Weed protection
Pruning: manually before the start of vegetation, the pruned shoots should be removed, the
shoots should be tied to supports, the first shoots should be removed, twice
Protection from diseases and pests
Supplementary fertilization: 150 kg of KAN in early April, 150 kg of KAN after blossoming, in late
April
Watering: May-June, in August as needed
Cultivation of the spaces between rows: rotary hoeing or harrowing, twice monthly until the
start of picking to reinforce fertilization and destroy weeds
Picking: mid-June – mid-July
Costs during the year of exploitation: protective agents, fertiliyers, packaging, cordage,
water, manual labor (pruning, tying shoots, removal of the first shoots, treatment for disease
and pests, fertilization, monthly hoeing, picking), mechanized cultivation (space between rows
twice) total BAM 20,000-22,000/hectare
In the Municipality of Bosanska Krupa, in 2014 raspbery yields were 15t/hectare, while in earlier
years, when the climate conditions were more favorable, some farms recorded the yields of up to
20t/hectare. Purchasing price for raspberries in 2014 in the Municipality of Bosanska Krupa was
BAM 3.0-3.5/kg at the start of the season, while subsequently it declined owing to the drop in quality
caused by excessive rainfall.
Type of crop: CUCUMBER
Mode of production: intensive farming with irrigation, with supports.
Vegetation period: May-August, 100-120 days
Final product: pickling cucumber for processing
Invested capital: BAM 12,000/hectare (preparation of land and basic materials)
Share of manual labor is very high: treatment for diseases and pests, picking. All manual operations
require 200 workdays x BAM 30, which totals BAM 6,000.
The costs of cucumber production are BAM 18,000/hectare.
PRODUCTION TECHNOLOGY
Soil preparation
Deep plowing, to the depth of 35cm, in autumn or spring
Preparation prior to planting: rotary hoeing or harrowing
Planting: in early to mid-May
Fertilizer application, basic or initial: manure 20-50t/hectare, mineral fertilizer: N 100kg/hectare,
P205 60kg/hectare, K20 180kg/hectare
Supplementary fertilizer application: urea, 0.5% solution
Protection from weed, disease and pest
Irrigation
Picking
In the Municipality of Bosanska Krupa, the cucumber yields in 2014 were around 30t/hectare, while
in 2013, due to better weather conditions, the yields were 40-50t/hectare, which was the record
yield for the Una-Sana Canton (data from the dealers, SPZ “AgroDar”, Cazin).
Purchasing price for pickling cucumbers ranged between BAM 0.80-1.10/kg, depending on the category.
The above calculations represent the production costs, which should be combined with freezing
costs, on average BAM 0.50/kg, forwarder‘s fee is on average BAM 300/per truck, while transport
costs are BAM 1.60/km, all of which comes into the price of the product on the foreign markets.
The exact price of the product cannot be shown because it depends on the type of cargo vehicle,
volume and weight of the vehicle, external temperature during the delivery of the goods,
transportation delays, waits etc.
10
INVESTMENT
PROFILE
INVEST IN FRUIT, VEGETABLE, AND DIARY SECTORS
IN BOSNIA AND HERZEGOVINA (BiH)
Locations: City of Bihać and Municipalities of Bosanska Krupa, Bužim, Cazin and Velika Kladuša
Bužim Municipality
Investment opportunity
1) Cold storage for raspberries and
cucumbers
2) Deep freeze for raspberries
(during the picking season in 2013
approximately 550t of raspberries were
harvested)
CONTACT
Municipality of Bužim
505th Viteške brigade 26
77245 Bužim
www.opcinabuzim.ba
Development and Entrepreneurship
Department
Tel: +387 37 419 518
Detailed information
Type of investment: Greenfield; Joint venture
Land: Land in the Bužim Municipality is predominately privately owned and is available for
investment. Private plots exist in multiple locations.
In the event there is interest for investment in the Municipality, the local administration will serve
as a contact for private land owners.
In the Municipality of Bužim there is a total of 70,784 m2 of land in state ownership used by the company
Agrokomerc from nearby Velika Kladuša. The Municipal Council passed a decree to establish the Business
Zone of Varoška Rijeka on this land, but the property rights remain unresolved.
Infrastructure (power, water supply, sewerage system, telecommunications, roads):
On all private land plots the infrastructure is developed (water, power, telephone, road network).
Documentation: The procedure and deadlines for obtaining construction documentation are
regulated by the Law on Spatial Planning and Construction of the Una-Sana Canton („Una-Sana
Canton Official Gazette“ no. 12/13), the deadline is no more than 90 days. The municipality may
issue the permits before the expiration of legally prescribed deadlines. Moreover, the municipality
currently charges investors with the lowest mandatory fees relative to the corresponding requirements
and benefits. The average construction value in the Municipality is BAM 500 while the basic cost is
BAM 55, both of which constitute the lowest prices in the Una-Sana Canton.
Labor force: There are 136 unemployed with agricultural specialty.
Wages: Average gross wage in the agricultural sector is BAM 818.
Utility costs (water supply, sewage, waste collection and disposal for industrial consumers):
Water:
Charge fo water meter – BAM 3.51
Charge per 1m3 of water – BAM 1.89
The cost of waste collection for legal person is combined from a fixed and a variable part. The fixed
part is BAM 7.50, the variable part is determined on the basis of the total surface area where the
business activites are conducted
Industrial Facility Group – removal of 1 garbage container holding 1.1m3 x BAM 42.12
Estimated costs per 1 kilogram of fruit/vegetables
Market price in BiH
Purchasing price of 1 kg of raspberries – BAM 2.80
Price of 1 kg of peppers – BAM 1
11
Cazin Municipality
INVESTMENT OPPORTUNITY
1) Cold storage for raspberries and
cucumbers (400 farmers produce
raspberries and cucumbers in the
Municipality of Cazin)
2) Deep freeze for raspberries
3) Dairy plant (1,054 milk producers in
the Municipality of Cazin)
CONTACT
Cazin Development Agency (Agencija za
razvoj Cazin – ARC) Public Enterprise
Amir Mulalić
Manager, ARC
Cell phone: +387 61 284 719
[email protected]
For all information on these investment
opportunities, please contact:
Cazin Development Agency (Agencija za
razvoj Cazin – ARC) Public Enterprise
Amir Mulalić, Manager, ARC
Mobile: +387 61 284 719
[email protected]
12
INVESTMENT
PROFILE
DETAILED INFORMATION
Type of investment: Brownfield
Available are the facilities of two companies in bankruptcy :
1) TKA, a company in bankruptcy, has two separate buildings.
One building is of the surface area of 10,058m2 (‚Cardboard Hall‘), it covers the area size of 5,000 m2,
with two floors, the images available on the link: https://www.dropbox.com/sh/hcn3y5oawjr5tkr/
AADZWRV8zsalM7DKrXrWYMmJa?dl=0), and with the business yard of 8,374 m2.
The other building has the total surface area of 4,255 m2 (the ‚Paper Pulp Preparation‘), it covers the
area size of 1,797 m2, with three floors, and with a business yard of 1,510 m2.
The TKA Co. in bankruptcy has additional 4 bigger buildings for sale in the bankruptcy procedure,
although the‚Cardboard Hall‘ facility is best suited for installation of a cold storage.
2) Medic Co. in bankruptcy, with a surface area of 10,000 m2 on the land plot of the total area zone over
30,000 m2; link: http://medicstecaj.com/.
In the process of acquisition of these properties, the representatives of the Cazin Municipality and ARC
may serve as intermediaries.
Land: 70.8 hectares of agricultural land in state ownerhip, at the disposal of the Municipality of Cazin.
Cost: In 2015, the Municipality of Cazin, in accordance with valid legislation, plans to offer this land for
lease in a public tender. The rule book which is in the process of adoption will determine the crops that
may be grown on this land, as well as the initial rent.
Infrastructure (power, water supply, sewage system, telecommunications, roads):
All infrastructure connections are available on a potential site for constructing cold storage (connections
exist in the facilities of companies in bankruptcy, TKA and Medic).
Documentation: No new licences are needed for the above described buildings of the companies in
bankruptcy, except for potential extension of the buildings or a change of previous business activity, in
terms of the work permit. If the application filed by the party is complete, the deadlines are the following:
• Urban planning permit – 5 days
• Construction permit – 5 days
If the party‘s application is not complete, the application needs to be amended before the permit
procedure commences.
Labor force: There are 10,599 unemployed persons in the Municipality of Cazin out of which 2% is in
the agricultural sector (FBiH Statistics Bureau, February 2015).
Wages: Estimated net wage is BAM 1,000 for university-trained engineers and BAM 500-800 for workers
(depending on the complexity of tasks and other factors).
Utility costs (water supply, sewage, waste collection and disposal for businesses):
Water BAM 1.80/m3
Sewage BAM 0.40/m3 of used water
The waste collection for companies that have large usable areas is negotiated according to the needs
of each company, an estimate for a large-capacity cold storage is between BAM 200-250 per month.
Estimated production cost per 1 kilogram of fruit/vegetables:
Raspberry (at the time of picking) – BAM 1.00/kg
Strawberry (at the time of picking) – BAM 1.00/kg
Milk – BAM 0.60/liter
Cucumber (at the time of picking) – BAM 0.20/kg
Raspberry (freezing in cold storage) – BAM 0.35/kg per month
Strawberry (freezing in cold storage) – BAM 0.35/kg per month.
Raspberries grown in the Municipality of Cazin are sold in fresh form at the markets in Munich (Germany),
which is about 7 hours drive from Cazin.
NOTE:
In the Municipality of Cazin there are several opportunities for investments in private ownership, which
can also be facilitated.
One of potential opportunities is the Agrokomerc – ‚Turkey Bird‘ Plant in the Village of Pjanići in Cazin, which
used to have a 5,000 ton operational cold storage. The facility is reasonably well-preserved and the
management of the Agrokomerc is willing to discuss possible business arrangements that would allow to
relaunch operations at this plant.
INVEST IN FRUIT, VEGETABLE, AND DIARY SECTORS
IN BOSNIA AND HERZEGOVINA (BiH)
Locations: City of Bihać and Municipalities of Bosanska Krupa, Bužim, Cazin and Velika Kladuša
Velika Kladuša Municipality
INVESTMENT OPPORTUNITY
1) Processing industry – final
processing of fruit and vegetable
products
2) Cold storage/deep freeze (for
fruits and vegetables)
CONTACT
Municipality of Velika Kladuša
Hamdije Pozderca 3
77230 Velika Kladuša
www.velikakladusa.gov.ba
[email protected]
Jasmin Šahinović
Head, Office of the Mayor
Tel: +387 37 770 025
[email protected]
For all information about these
investment opportunities, please contact
the Municipality of Velika Kladuša:
Jasmin Šahinović, Head, Office of the Mayor
Tel: +387 37 770 025
[email protected]
DETAILED INFORMATION
Type of investment: Greenfild
Land: In the Municipality of Velika Kladuša, the activities are ongoing on drafting three key documents
that define the spatial planning basis, and that will define the locations for potential investment
opportunities (changes and amendments of the Spatial Plan and Zoning Plan of the Municipality of
Velika Kladuša and drafting of the Regulation Plan of the Business Zone of Šumatačke Luke). The deadline
for adoption of these documents is end 2015, and their implementation will begin in 2016.
Infrastructure (power, water supply, sewage system, telecommunications, roads):
Most potential investment sites will have access to utility infrastructure.
Documentation: Legal deadlines for issuance of approvals and permits are as follows: 20 days for
urban planning permit and for construction permit after a complete request was submitted, and 8
days for issuance of the usage permit after the report on technical inspection of the building is
received (the deadline for conducting the technical inspection is 30 days after the submission of the
complete application).
Labor force: 8,473 unemployed, 4% of whom in the agricultural sector (January 2015)
Wages: Average wage in agricultural sector: approximately BAM 600 per month for workers.
Utility costs (water supply, sewage, waste collection and disposal):
Average prices
Water – BAM 1.60/m3
Sewage waters – BAM 0.50/m3
Waste disposal per unit of measure – BAM 6.40
Estimated production costs per 1 kilogram of fruits/ vegetables:
Raspberries – BAM 0.12/kg for fresh raspberries
Raspberries – BAM 0.90/kg for frozen raspberries
Pickling cucumber – BAM 0.40/kg
NOTE:
In the Municipality of Velika Kladuša there is the Agrokomerc Corp. Velika Kladuša, which is majority in
state ownership and which has significant food-processing and warehousing capacities for potential
brownfield investment.
There are also private small and medium enterprises which activity is purchase and processing of fruit
and vegetables and which are interested in expansion of their capacities through joint ventures.
13
AVERAGE COSTS OF URBAN PLANNING PERMIT (LOCATION REQUIREMENTS),
CONSTRUCTION PERMIT, AND USAGE PERMIT
Type of facility
Surface area
Costs excluding fee for
CCL (degree of
development) and one
time rent
Fee for CCL (degree of
development) and one
time rent
2,500 m2
3,500 m2
750 m2
BAM 56,652.15
BAM 85,452.15
BAM 21,923.64
BAM 72,695.25
BAM 101,773.35
BAM 21,808.58
Cold storage
Fruit and vegetable processing plant
Dairy plant – cheese factory
Total costs
BAM 129,347.40
BAM 187,225.50
BAM 43,732.21
CCL – City Construction Land
• Average costs assessed according to data from municipalities by Bosanska Krupa and Cazin.
• In areas outside of cities, no fee for city construction land (degree of development) is charged
• Assumed investment value of the facility:
• Cold Storage: BAM 1,500,000
• Fruit and vegetable processing plant: BAM 7,800,000
• Dairy: BAM 2,000,000
UTILITY COSTS
Type of cost
Cost including charges
Power (average cost – December of 2014)
Natural gas (cost for industrial consumers)
(average cost – December of 2014)
Water supply, sewage, waste collection and disposal
for industrial consumers
EUR/kWh 0.075
EUR/Sm3 0.588
Setting costs for those services is within the competence
of municipal authorities
Telephone: EUR 8.40
Internet: EUR 20.00
Telephone and Internet (monthly subscription)
EMPLOYEES’ WAGES
Sector
Average monthly wage per employee in BiH for December of 2014
In general
Gross EUR 679
Net EUR 431
Agriculture
Gross EUR 608
Agriculture – per diem for a seasonal worker*
Net EUR 15-20
* Workers without corresponding professional qualifications may be engaged in the production cycle.
• The Faculty of Biotechnology located in this area offers degrees in engineering for agriculture and food-procesing. Please see
the link: http://bet.unbi.ba/.
• Available to investors are engineers specialized in field crop farming/ gardening, fruit growing and organic agriculture (222
engineers) and agricultural and food-processing technicians (733).
(Federation Employment Bureau, 2013 data)
14
INVESTMENT
PROFILE
INVEST IN FRUIT, VEGETABLE, AND DIARY SECTORS
IN BOSNIA AND HERZEGOVINA (BiH)
Locations: City of Bihać and Municipalities of Bosanska Krupa, Bužim, Cazin and Velika Kladuša
Availability of General Services In the locations, all types of general services are available: accounting and bookkeeping services, commercial banks, insurance
companies, shipping services, notary publics, lawyers, IT services, and others.
Electronic Registries Electronic registries with details on permits and licenses the investors may need in BiH, Federation of BiH, Republika Srpska, and
in individual investment locations.
Name of Institution
Link to access electronic registry
BiH Ministry of Foreign Trade and Economic Relations
(MOFTER)
Federation of BiH
http://rap.mvteo.gov.ba/egfVwOdlukaJedinice.aspx
http://fbihvlada.gov.ba/bosanski/ereg/index.php
Republika Srpska
http://www.regodobrenja.net/index.php?jezik=1
Una-Sana Canton
http://www.vladausk.ba/v2/
http://www.bihac.org/
City of Bihac
http://www.opcinabosanskakrupa.ba/
Municipality of Bosanska Krupa
Contact Information for Investors
Bosnia and Herzegovina Foreign Investment
Promotion Agency (FIPA)
Grbavička 4
71000 Sarajevo
Bosnia and Herzegovina
Tel: +387 33 278 080
Fax: +387 33 278 081
Web: www.fipa.gov.ba
E-mail: [email protected]
Amir Kazić
Tel: +387 36 558 816
Email: [email protected]
Tanja Bojović Simić
Tel: +387 33 278 098
Email: [email protected]
For detailed information about investment opportunities
in other municipalities/cities, please contact:
Bosanski Petrovac Municipality
Zlatko Hujić, Mayor
Bosanska 110
77250 Bosanski Petrovac
Tel: +387 37 883 579 Mayor’s Office
+387 37 883 571 Switchboard
Fax: +387 37 881 012
http://www.bosanskipetrovac.gov.ba
[email protected]
Ključ Municipality
Nedžad Zukanović, Mayor
Branilaca BiH broj 78
79280 Ključ
Tel: +387 37 662 054 Mayor’s Office
+387 37 661 100 Switchboard
Fax: +387 37 661 104
http://opcina-kljuc.ba/pocetna
[email protected]
Sanski Most Municipality
Mustafa Avdagić, Mayor
Banjalučka 3
79260 Sanski Most
Tel: +387 37 689 345 Mayor’s Office
+387 37 685 408 Switchboard
+387 37 686 044
Fax: +387 37 686 130
http://www.sanskimost.gov.ba/
[email protected]
15
COME, SEE,
AND INVEST!
We are at your disposal
to organize your visit to BiH.
The Investment Profile was prepared with support of the International Finance Corporation (IFC),
a member of the World Bank Group, and the Kingdom of Sweden
Bosnia and Herzegovina Foreign Investment Promotion Agency