Agriculture and Forestry Sector 8
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1 Agriculture and Forestry Sector 8 DCF members active in the sector in Other key international organisations (IOs) Key government partners Total allocation to the sector in 2009 and 2010 by DCF members Sector strategies Donor coordination Italy/IC, Japan/JICA, The Netherlands, Norway, Sweden/Sida, Switzerland/SDC/SECO, USA/USAID, EBRD, EC, World Bank. The Food and Agriculture Organization (FAO). Sector for Agriculture, Food, Forestry and Rural Development at the Ministry of Foreign Trade and Economic Relations (MoFTER); RS Ministry of Agriculture, Forestry and Water Management; FBiH Ministry of Agriculture, Water Management and Forestry; State Veterinary Office; BiH Food Safety Agency; BiH Plant Health Protection Agency. 2009: million million in grants and million in loans 2010: million million in grants and 4.26 million in loans BiH Harmonisation Strategy and Operational Programme for Agriculture; FBiH Strategy for Agriculture and Rural Development; RS Strategy for Agricultural Development; RS Strategic Plan for Rural Development by Donor coordination meetings in the Agriculture sub sector are organised and chaired by MoFTER. There are no regular coordination meetings in the Forestry sub sector. Overview Based on the DAC definition, the Agriculture and Forestry sector is made up of the following elements: agricultural policy and administrative management; agricultural development and agrarian reform; agricultural water and land resources; agricultural inputs; food crop production; agro industries and forest industries; industrial crops and export crops; agricultural services; agricultural financial services; agricultural cooperatives; agriculture education and training; forestry policy and administrative management; forestry research, education and training; and Forestry development. Bosnia and Herzegovina has 2.57 million ha (50%) of agricultural land and 2.47 million ha (49%) of forest and forest territory. 2 Forestry is a valuable ecological, biological, economical and developmental resource for BiH. However, due to devastation and mine contamination, significant agricultural and forest resources remain unused. Therefore, additional efforts are needed in the clearance and restoration of these forest areas. Agriculture and forestry issues in BiH are regulated at the entity levels. At the state level the Sector for Agriculture, Food, Forestry and Rural Development (SAFFRD) at the MoFTER deals with the coordination of international affairs, harmonisation and monitoring of donor activities, as well as the synchronisation of activities for both entities. Donor agencies, financial institutions and MoFTER highlighted improvements in the coordination of activities in this sector in All emphasised the need for further enhancement of state level and entity capacities for better aid coordination. During the course of 2009 the BiH Strategic Plan for Harmonisation of Agriculture, Food and Rural Development along with the Operational Plan were adopted. The first steps were taken for defining a model for the Instrument for Preaccession Assistance Component V Rural Development (IPARD) in BiH. Notable progress was made in the Forestry sub sector in 2009 with the introduction of Corporative Governance in Republika Srpska Šume along with the expectation that the same structure will be introduced in cantonal forest management enterprises in the FBiH in The new FBiH revised Law on Forestry was drafted in February 2010 and is now pending parliamentary approval. The State Forest Inventory (SFI) was finalised and the analysis of data collected will be completed by end November According to the SFI, forests in BiH cover a larger area now than 40 years ago and are in much better shape than perceived by the public. The SFI provides solid information on composition, size and condition of forest areas and makes a good basis for the development of entity forest management strategies and longterm planning. Positive developments in these sub sectors in 2008 resulted from increased income from timber sales through auction. In 1 Including 1.3 million for EC 2010 Pipeline projects in 2010 not yet contracted. 2 Report on Agriculture for BiH 2007, BiH MoFTER.
2 2009, as result of the global financial crisis, the demand for timber has decreased significantly, negatively affecting not only the wood/timber industry but also the country s economy. Donor activities in 2009 and 2010 DCF members active in the Agriculture and Forestry sector during 2009 were Sweden/Sida, the EC, USA/USAID, Italy/IC, Norway, Switzerland/SDC/SECO, Japan/JICA, the Netherlands, EBRD and the World Bank. Of these agencies, Japan/JICA, the Netherlands, and EBRD have not allocated new funding to Agriculture and Forestry projects for The EC 2010 Pipeline projects for this sector with a value of 1.3 million have yet to be contracted. (Figure 8.1) Compared to the 2008 figures, total assistance to this sector in 2009 has increased more than three times from million 3 to million. Grant assistance increased by 9.74 million and loan assistance increased by million, including commercial loans to private enterprises. Donor assistance to the Agriculture and Forestry sector includes diverse programmes and activities ranging from the support of institutional development and improvement of efficiency and competitiveness of BiH agricultural producers to the application of new technologies and standards. Agriculture and Forestry sector activities are closely linked to other sectors including Economic Development, Gender, and Return and Reintegration. Therefore, the real allocation to this sector may be higher than presented in the figures mentioned above, as some of the activities may be included in the Economic Development, Social Protection or Cross cutting chapters of this report. This sector received 6% of total ODA allocations in 2009 and to date 2% of total ODA allocations in 2010 (excluding EC Pipeline projects for 2010) Figure 8.1. Donor Aid Flows in the Agriculture and Forestry Sector Grants Only (Euros millions) Figure 8.2. Grant Loans Split in the Agriculture and Forestry Sector (Euros millions) 14,46 32,15 7,54 4, grants loans The total allocation to the Agriculture and Forestry sector by DCF members was million in 2009, which includes million in loans (including commercial loans from EBRD in the amount of 28.7 million and the World Bank loan tranche of 3.45 million) and million in grants. For 2010, to date, donors have contributed million, (including EC Pipeline projects for 2010 in the value of 1.3 million and the World Bank loan tranche of 4.26 million). As in all other chapters, EC Pipeline 2010 figures have not been included in the charts. (Figures 8.2 and 8.3) 3 Current DCF database figures.
3 Figure 8.3. Aid Flows in the Agriculture and Forestry Sector Loans Only (Euros millions) Figure 8.4. Donor/IFIs Aid Distribution to the Agriculture and Forestry Sector (Euros millions) , , , ,04 5 3,45 4, ,53 0 EBRD World Bank The distribution of aid in the Agriculture and Forestry sector recorded a steady increase from 2007 to 2008 and a significant increase in However, is should be noted that 2009 figures include commercial loans provided to private enterprises working in this sector. To date, in 2010 donor/ifis allocations to the sector amount to million. Agriculture Initiatives that were supported in the Agricultural sector in 2009 and 2010 include: Strengthening capacities of state and entity level institutions as a part of the country s preparation for accessing EU instruments for Pre Accession Assistance for Rural Development (IPARD). Development and expansion of the soft fruit sector. Poverty reduction through the increase of sustainable growth and improved efficiency and the competitiveness of BiH agricultural producers and enterprises. Assistance in the fight against Brucellosis. Adaptation of a national food safety system including adherence to international requirements set forth by the EU and the WTO. Assistance to returnees via income generating activities. Promotion of traditional agriculture and commercial farming development. Support of organic farming certification, training of agricultural producers and introduction of advanced technologies. Linking domestic and international markets and providing commercial loans to foodstuff production enterprises. Pilot Actions for Rural integrated Development and Revitalisation of Territory in Bosnia and Herzegovina. Protection and valorisation of high quality traditional products of Herzegovina. Support to the Agro Food Production Chain of small fruits in Bratunac. Some projects cover the entire country but many specific activities target vulnerable groups such as returnees and socially excluded people in the Srebrenica and north western regions. Other projects are created with the purpose of revitalising traditional farming methods in agriculture in areas such as the Herzegovina region. These initiatives support sustainable return and poverty reduction. Forestry The forestry sub sector is one of the least funded sectors with only a few donors implementing programmes and projects in this area. The focus of donors/ifis in the forestry sub sector includes: The reform process in forestry organisations and management introducing corporative governance as completed in RS and planned in FBiH by Protection of biodiversity and forest areas with proper land use planning.
4 A second State Forest Inventory to be completed at the end of It will be the basis for the preparation of forest strategies, development of long term planning, monitoring of forests and forest area conditions and prioritising for research and development of forests. Introduction of the Information System in Forestry to be completed by the end of To help management through the Geographical Information System (GIS) to ensure standardisation of data per type and volume and to improve the information exchange between forest institutions in charge of managing these resources. Forest Certification activities completed in RS and 4 FBiH cantons will indicate the success of sustainable, socioaccountable, economically acceptable forest management. Certification of wood/timber products to open international markets for domestic producers. Introduction of the Codebook (šifrarnik) for Forest Categorisation and Household Classes in FBiH, completed at the end of 2009, will help to design a unified management system in FBiH. Modernisation of the Land Registry System in BiH. This ongoing effort of donor agencies/ifi is aimed at the establishment of an electronic database to link the Cadastre and the Land Registry. The Land Registry System will clarify ownership and registration of property rights, which will in turn facilitate the development of a transparent land and property market. Major projects during in the Agriculture and Forestry sector are listed below: Project Donor/ Financial institution Total value of the project (Euros in millions) Konzum BiH (Loan) EBRD 25 4 Agriculture and Rural Development Project (Grant/Loan) The World Bank/Sweden/Sida Fostering Interventions for Rapid Market Advancements FIRMA (Grant) Sweden/Sida, USA/USAID Fostering Agriculture Market Activity FARMA (Grant) Sweden/Sida, USA/USAID Small Scale Commercial Agriculture Development Project (Loan) The World Bank 9.22 Forest Development and Conservation Project (Loan) The World Bank 5.30 Fight against Brucellosis (Grant) Sweden/Sida 2.50 Swiss Agricultural Project in the Region of Mostar (SPPOM) (Grant) Switzerland/SDC/ SECO 2.49 Bimal (Loan) EBRD 2.40 Agricultural Development (Grant) Norway 2.40 VF Komerc (Loan) EBRD 1.30 Strengthening and Harmonisation of the BiH agriculture and rural sectors EC 1.28 Information System (Grant) The Project for Confidence Building through Agricultural and Rural Enterprise Japan/JICA 1.13 Development in Srebrenica Municipality (Grant) Protection and valorisation of high quality traditional products of Herzegovina Italy/Italian Cooperation (Grant) Pilot Actions for Rural integrated development and the revitalisation of the Italy/Italian Cooperation 0.95 territory in Bosnia and Herzegovina (Grant) Revival of a valley: integrated action of organic farming, sustainable tourism Italy/Italian Cooperation and socio economic inclusion in the Una Valley (Grant) Other small scale initiatives not included in the table are available in the Donor Coordination Forum database Sector strategies The Strategic Plan for the Harmonisation of BiH Agriculture, Food and Rural Development was adopted in It provides a framework for essential public sector reforms in order to strengthen collaboration and management of SAFFRD. It improves the roles and the focus of executive agencies in charge of food safety, veterinary and phytosanitary issues. It accelerates legal and institutional reforms and enhances capacities in support of rural development. In addition, a state level Operational Programme for the Harmonisation of BIH Agriculture, Food and Rural Development , as an associated document to the Strategic Plan, also adopted in 2009, foresees gradual harmonisation of sector policies and mechanisms at state, entity and cantonal levels. This programme will follow EU regulations in this sector for accessing prospective IPARD funds. Both entities have developed agricultural strategies, the FBiH Strategy for Agriculture and Rural Development and the RS Strategy for Agricultural Development , which are compatible but not yet harmonised with the Strategic Plan for the Harmonisation of BiH Agriculture, Food and Rural Development Total value of the loan is 57 million. Total contribution by EBRB was 25 million. 5 Total value of the project is 3.29 million. DCF database figures contain 2009 and 2010 allocations in the amount of 1.10 million. 6 Total value of the project is 2.56 million. DCF database figures contain 2010 allocations in the amount of 0.55 million.
5 The state level framework Law on Agriculture, Food and Rural Development of BiH that was adopted in May 2008 is awaiting approval of the implementation legislation. There are no new developments in preparation of the National Rural Development Strategy. In April 2009 Republika Srpska adopted The Strategic Plan for Rural Development in RS effective by There are some indications that the FBiH Strategy of Rural Development will be drafted in Whilst entity level strategies are presently being developed, with some indication that they will be completed by the end of 2010, there is currently no state level forest management strategy. In addition, the national standards for forest certification in BiH that were prepared at the end of 2009 are still in draft form pending finalisation in Donor coordination Donor coordination meetings, as a platform for information exchange between all stakeholders in the Agriculture sector, are organised by MoFTER. Its proactive approach is praised by many donor agencies. The improved, focused collaboration of international assistance has prevented overlapping of activities. Some 400 project ideas compiled by SAFFRD/MoFTER were presented to the donor community at an International Donors Conference in the Agricultural sector in June Harmonisation with international standards and further strengthening of state and entity level capacities are essential for further progress. There is no formal coordination mechanism in the Forestry sector at the state level. Future activities Stakeholders agree that the Agriculture and Forestry sector can ensure inclusive and sustainable growth of the country s economy, poverty reduction through utilising local resources and environmental protection. The establishment of proper management of natural resources and land use requires continuous donor support and attention from all stakeholders involved. MoFTER plans to organise a donor meeting in October 2010 to present its priorities. Priority areas in the Agriculture and Forestry sector that would require further assistance include: Preparation of legal regulations with better clarification of roles and responsibilities of different levels of the governments. Harmonisation of the legislative framework among state level, entity level and cantonal levels as well as inter entity levels, and harmonisation with EU provisions and international legislature. Strengthening of institutional capacities. Enhancement of human capacities and technical and further education. Furthermore, domestic stakeholders agree that careful assessment of the coverage of the country s strategic priorities with respect to international and domestic funding sources is needed. Even though advancements and improvements in the forestry sub sector are evident some donors believe that more attention should be given to the: Monitoring of forest health. Poor conditions of forest roads. Fire protection. Better use of the hidden potential of non timber forest products such as medical and aromatic herbs or mushrooms and wild fruits.
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