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50 % of primary and secondary production in B&H destroyed during the war No mid- or long-term strategy on the state level Decentralized and limited subvention programs Nonuniform economical space Inadequate customs policy by import of seeds, fertilizers etc. Deficit of quality control system for imported products
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Mr. Dino Osmanbegović, Member of the Managing Board
Raiffeisen BANKBosnia and Herzegovina
AGRI-BUSINESS IN AGRI-BUSINESS IN B&HB&HOpportunitiesOpportunities
&&RisksRisks
Agriculture in B&H
Agriculture in B&H 50 % of primary and secondary production in B&H destroyed during the war No mid- or long-term strategy on the state level Decentralized and limited subvention programs Nonuniform economical space Inadequate customs policy by import of seeds, fertilizers etc. Deficit of quality control system for imported products
Period: 1997-2003Period: 1997-2003Source: Agency for Statistics FB&HSource: Agency for Statistics FB&H
Agriculture in B&H
Slow recovering of primary production potentials*
Fruit growing - stagnation excl. production of grapes Cattle raising - stagnation excl. sheep raising Primary products - stagnation excl. honey
Agriculture and Banks
Agriculture and Banks Undefined legal status of farmers High percentage of imported production material Deficit of system for certifying domestic products Specifics of production cycles High influence of force majeure Inadequate collateral Undeveloped financial infrastructure causing Low credit cultureInadequate funding
sources !!!
TO DO’s - AGRI-Businnes Consequent transition to market economy Modernization of production Certification of products Establishment of marketing unions and cooperatives Economies of scale in AGRI-BusinessTO DO’s - Banks
Introduction of tailor made loan-products Adaptation of lending procedures Creation of specialized products Education of staff - specialized skills
Agriculture and Banks
Raiffeisen BANK
Raiffeisen BANK
Farmer Secondaryproducer
Food industry/Wholesale
FINANCING
RBBH’s focus in the supply chain
Cooperation withprimary producers - SMEmiddle sized producers and cooperativesthe majority of the most significant B&H secondary producers
Raiffeisen BANK
Raiffeisen BANKBIMAL - Edible Oil Refinery in Brčko
06/2002 - Privatization Initiating domestic production of edible oil
by-product: meal for production of cattle feed Deficits of the production chain
lack of quality raw materials’ base/ local primary productionimport of oleiferous plants
Opportunity for opening new chain through producer of cattle feed RBBH Role
Partner Bank in the privatization process Investment loan Financing purchase of raw materials
SME Loans Financing import of production material Trade/Export Financing Working Capital Financing Leasing of Machinery - Raiffeisen Leasing
Raiffeisen BANKProducts and services
Raiffeisen BANKFund Management CompanyBrokerage CompanyInsurance CompanyLeasing Company
Mr. Dino Osmanbegović, Member of the Managing Board
Raiffeisen GroupBosnia and Herzegovina
