ОДРЖИВИ РАЗВОЈ И УПРАВЉАЊЕ ПРИРОДНИМ РЕСУРСИМА РЕПУБЛИКЕ СРПСКЕ

Status and prospects of agricultural cooperative development

Gordana Rokvić Knežić — 2024-03-29

Cooperatives in the Republika Srpska are in a position to face the consequences of development from the previous period, the consequences of the war and the creation of a new concept of cooperative development, starting primarily from changes in the legal, economic and political system of the country. There are two phenomena or two directions of development of cooperatives. First is the direction of development of newly established cooperatives that have fully or at least partially harmonized their operations with cooperative principles and legal framework and have a sound business and market policy. The other direction of stagnation and undevelopment refers to the still present so-called old cooperatives that have not adjusted their operations to the new legal framework or new market circumstances, and are very often burdened with lawsuits, within which significant cooperative and state property has been blocked. The experience of developed countries proves that cooperatives are one of the irreplaceable segments of agricultural and rural development and a very suitable form for free and voluntary association of producers. The role of cooperatives in the future is to influence the reduction of social and economic divisions and to direct the whole process in a fairer way. It could be said that cooperatives, from the point of view of their principles, represent irreplaceable forms of organizing people. They, in fact, by their structure and specifics, carry the keys to their own success. The parameters of cooperative adequacy are different, and the following stand out: priority of cooperative membership; diversity of cooperatives; strengthening the power of the people; careful resource management; creating financial power; strategic thinking. Cooperative membership must be the center of attention.

The analysis of financial position and profitability of agricultural and food manufacturing companies

Tamara Stojanović — 2024-03-29

The analysis of financial position and profitability of companies is usually based on time and space comparison. The financial position is considered as status and relation between assets, liabilities and equity presented in the financial statement known as Balance Sheet. This financial statement is the source of basic financial position indicators such as: liquidity (acid test and current liquidity), financial stability, financial structure, interest coverage and solvency. Financial performance, i.e. profitability can be measured on the basis of Income Statement data, by using the indicators such as: revenues structure, profits (losses) and profitability ratios. In order to analyze financial position and profitability of agricultural and food producing companies in the Republic of Srpska, we have used the balance sheets and income statements of companies registered as legal entities from 2014-2018. The analysis covered 615 companies in average (330 companies in agricultural sector and 285 companies in food industry). Although among agricultural companies there are those who have good financial position, observing the whole sector as one entity, it is obvious that the majority of agricultural producers’ financial position is somewhere between acceptable and weak (acid test – 0.5 in average; financial stability indicator above 1.0; 70% of financial sources relates to debts; solvency - only 1.4 in average). Such, rather unacceptable financial position is also confirmed by profitability indicators which lead to conclusion that the agricultural sector in not successful regarding the ability to provide returns on total assets (ROA is 0% in average during the whole period). However, the returns on equity are a little bit better (ROE from 2-5%), but they can also indicate the low level of equity in large number of agricultural companies. Food industry is in a similar situation relating to the financial position – the financial position of the majority of companies is between acceptable and weak (acid test – 0.6 in average; financial stability indicator – 0.8 in average; 70% of financial sources relates to debts; solvency - only 1.5 in average). However, their profitability indicators are much better than those of agricultural sector. Return on assets (ROA) was from 1-3%, while return on equity (ROE) varied between 7% and 11%. Nevertheless, the variations between individual companies are significant. Therefore some companies have extremely good indicators of financial position and profitability, while the majority of companies are not the position to achieve such results.

Quantitative data and indicators on agricultural activity

Jasmin Komić — 2024-03-29

Statistical coverage and quantitative presentation of agricultural activity are of particular importance for planning agricultural, strategic, and production activities. Food production is a fundamental existential condition, that is, the essence of the existence and development of the human population, as well as animal and plant life on Earth. For all the reasons mentioned above, it is utterly important to have adequate, valid, up-to-date, and comprehensive data and indicators. Obtaining such data is a complex, difficult, time-consuming, and relatively expensive process. If the data are missing, inaccurate, out-of-date, or if they are not collected properly, then all the analyses, estimates, forecasts, and plans are bound to contain errors, resulting in wrong conclusions, decisions, and ultimately leading to wrong solutions. The problem of missing data and the presence of outliers - atypical values is particularly emphasized. In this text the most important aspects of the quantitative (statistical) coverage of agricultural activity are presented. This primarily refers to the method of obtaining the data, which can be done as a complete or a partial observation, that is, sampling. The two methods are presented through censuses, surveying and sampling, with special reference to the upcoming comprehensive census of agriculture. The process of obtaining of indicators is presented in the text, with a special focus on descriptive statistical measures. Data and indicators according to the Global Strategy for the Improvement of Agricultural and Rural Statistics, as well as data and indicators of the Food and Agriculture Organization (FAO), indicators of the Common Agricultural Policy (CAP), and indicators of the World Bank and Eurostat are presented. Based on all the means of obtaining data, while respecting the constant need to align and harmonize the system of our agricultural statistics with the requirements of the European Union, as well as considering the experiences of all the mentioned (and most important) institutions for the production of statistical data in Europe and the world, a proposal of indicators and required data for quantitative presentation of agricultural activity in the Republic of Srpska is given. In addition, the need to introduce statistical registers of agriculture, that should enable continuous quantitative monitoring of agricultural activity, was particularly emphasized.

Food loss and waste reduction – a new challenge for all stakeholders in food supply chain

Željko Vaško — 2024-03-29

In line with the trend of population growth in the world, increasing food production becomes imperative for the agricultural sector, especially since even with the current population, one billion people were malnourished or hungry. The opportunity to increase food production is mainly reduced to increasing yields and is less based on increasing cultivated areas and the number of domestic animals. The productivity of agriculture increases through its intensification, that is, greater application of artificially produced inputs (fertilizers, pesticides, antibiotics, etc.), which threatens the health safety of the food produced in this way and leads to an increase in nature pollution. This closes a circle in which the survival of humanity is conditioned by the reduction of health food safety and the degradation of the environment. As a logical counterbalance, an ecological movement emerged that advocates food production based on sustainable principles, the use of natural inputs and processes, and the preservation of nature. That logic would be acceptable to everyone if it did not materialize in the contradiction of "more ecology, less (more expensive) food". In addition to environmental activists, the goal of producing food in an ecologically acceptable manner was also adopted by the EU as one of its longterm strategic goals (the so-called "Green Plan"). One of the possibilities of increased satisfaction of the food needs of the world population, instead of increasing its production, is the reduction of losses and waste of already produced food, which has become one of the world's development goals since 2015 (SDG 12.3. - halve global food waste per capita at the retail level and consumer level and reduce food losses along production and supply chains by 2030). Terminologically, food losses are related to the phases of its production, distribution and processing, and food waste to the phase of food trade and consumption. Practically, the effect of increasing food production can be substituted by the effect of reducing food losses and waste, which has become a new challenge for all participants in the food supply chain, from producers, through distributors and traders to consumers. The scientific community is also one of the participants in that process, which contributes with its research to identify causes and find solutions to reduce food losses and waste. The facts presented in this chapter aim to draw attention to the issue of food losses and waste with a focus on the situation in Bosnia and Herzegovina. The treatment of the selected topic begins with the argumentation of the growing need for food in the world, primarily due to the increase in the number of inhabitants and the goal of eradicating hunger and malnutrition. It continues with the projection of limited possibilities for the production of significantly larger quantities of food in the future. After that, the concepts of food loss and waste and ways of measuring them are introduced. The key chapter is the dedicated to assessing the scope and causes of food losses and waste in Bosnia and Herzegovina. An overview of food losses and waste along the supply chain is also given, based on selected literature sources. The chapter ends with a review of the hierarchy of food waste disposal with concrete proposals for reducing food losses and waste in the BiH environment.

Possibilities and forms in labeling of agri-food products

Aleksandar Ostojić — 2024-03-29

There is an intense competition in the agri-food market and because of that the consumers are becoming more and more insecure in terms of the product's origin, producer's reputation, production methods and the product's quality. The supply of the domestic agriculture is still based on the traditional agricultural products and actions are needed to increase the supply of protected and branded products. In order to increase the popularity of domestic products on the market, it is necessary for them to differ in some way from a similar competition products. Labeling of agri-food products is an opportunity for consumers to notice domestic products on the supermarket shelves. The additional benefits from the protection procedure also contribute to the prevention of misuse of the name and / or origin of the product. In this way, the product is differentiated on the market, it builds consumer sureness in terms of reliability in the quality and the name of the product. Unlike our domestic market, where the protection and labeling of agri– food products is very modest, in the developed countries this way of adding value to the products is extremely present. The types of brands that are used for the differentiation are various, and this paper starts from three forms: individual, collective and official. These brands are firtsly based on quality and origin. The use of the individual brands is suitable only for sufficiently large individual farmers, who can guarantee a satisfactory quantities and uniformed product quality. From the agriculture point of view, the forms of product labeling that results from the community work of the homogenous group of producers are especially interesting, because it enables to small producers of traditional products mostly, or producers who produce according to organic principles, to protect their own products. Through the association, preconditions are created both for the creation of brands and for the protection of geographical indications. In the certification of organic production, umbrella (“roof”) brands are present and they do organic agriculture labeling in order to guarantee a sufficient offer in terms of quantity and quality. Protection, brand development and branding in the domestic market is at the very beginning. It is evident from the examples that individuals or producer groups create and develop collective brands through trademark protection. Others use regulations of the protection of geographical indications or organic production, design their own symbols to differentiate their products on the market, but without any legal protection. Republika Srpska through its strategic documents or strategies adopted for the needs of the Ministry of Agriculture, Forestry and Water Management encourages individuals in protection and branding. They should introduce branding, protection of collective designations of geographical origin and certification of organic products. In addition to the mentioned labels, there are other opportunities for the development of national marketing or regional labels that could be created by various organizations, either public or private. In order to improve the process of labeling and protection, it is necessary to conduct educational activities with producers in terms of pointing out the role and the importance of product identification with one of the labels, all in accordance with the suitability for protection of products. Actions are also needed to inform consumers in terms of understanding and recognizing certain labels on potential domestic products.

Significance and perspectives for development of commodity exchange trade in agricultural products

Vlado Kovačević — 2024-03-29

Exchanges are intermediaries in the trade of commodities, financial instruments that have commodities in their base or credit instruments that are secured by commodities. Commodity exchanges have gained in importance in recent decades. Commodity exchanges have evolved from the place where the physical purchase and sale of goods takes place to trade in commodity derivatives where standardized contracts−futures and options−are traded. The role of commodity exchanges in the development of the agribusiness sector has changed significantly from the initial stage of development when in the beginning the main role was to ensure efficient and transparent exchange of commodities, until the early 1970s when instruments were developed to enable risk management in the agribusiness sector. The largest volume of tradе on modern commodity exchanges is realized in standardized derivative contracts. Financial derivatives are one of the most successful financial innovations, with the volume of turnover increasing significantly. Within this chapter, special attention is paid to the analysis of the situation in the field of commodity exchange trading in the Western Balkan region. According to the results of the analysis, developed agricultural commodity exchange trade is not available to the farmers in these countries, nor are business risk management instruments available to participants in countries with developed commodity exchange systems. Analyses have shown that the sole commodity exchange with a significant volume of trade in the countries of the Western Balkans is the Novi Sad commodity exchange, trading on the spot and non‒standardized term market. In terms of the directions of development of regional commodity trade, the experience so far shows that high trading volume is a paramount for well‒developed commodity exchange. Therefore, the path to the development of commodity exchange trading is the establishment of a regional commodity exchange that would be a place of trade for all of the Western Balkan’s countries. By establishing a regional commodity exchange, participants in the agricultural sector would have the opportunity to securely and transparently trade and manage the price risk that have a pronounced volatility in recent years.

The role of the food industry in the development of the agricultural sector

Ljiljana Drinić — 2024-03-29

Food Industry has a significant place in the structure of the entire Industry. Depending on the level of economic and agricultural development, as well as the raw material base, about 60-80% of primary agricultural production is processed and prepared for final consumption in the food industry. The term food industry implies the processing of plant, animal and mineral raw materials in order to meet the dietary needs of people. Considering the development of production orientations of the food industry, it can be seen that this industry is expanding its activities beyond the framework of traditional food production and has an increasing focus on the production of a full range of its own raw materials and auxiliary materials; whereby, constantly connecting with other branches and areas, establishing more permanent and stronger integration ties in the process of social reproduction (vertical integration). The processing industry of agricultural raw materials is one of the leading branches of the economy and represents an important resource for the development, not only of the agricultural sector, but also of the RS economy as a whole. However, analyzing this segment of the economy, it can be concluded that the volume, processing, degree of finalization, export and connection in the business chain, etc. is not even remotely used. Observing the trend of realized production in the analyzed period through the basic index of physical volume, it can be concluded that the basic index of 1,11 was achieved in meat production and processing; in fruit and vegetable processing 0,68; dairy production 0,62; manufacturing of mill products 0,98; manufacturing of bakery products and pasta 1,25; manufacturing of any remaining food products 1,02; manufacturing of finished animal feed 1,08 and in the production of beverages 1,25. Based on the analysis and presented data, the strategic goals of the RS food industry would be to increase the level of raw material utilization, revitalization of capacities by modernization of existing capacities, introduction of quality standards, new equipment and new technologies.

Value chains of selected products as elements of sustainability of agricultural production

Zorica Sredojević — 2024-03-29

The value chain concept is often used in the analysis of agricultural competitiveness. Its application seeks ways and activities that add value to products. The focus is on finding opportunities for efficient monitoring of modern trends, challenges and business risk assessment in order to sustainably produce processing and marketing of agri-food products. The production of fruits and vegetables by small producers is characterized by short chains from production to product placement, without adding value. There are numerous critical points in the analyzed chains, such as quality of input, processing, drying and storage of products, lack of training and financial resources for storage and preservation of products after harvest. The link between primary production and the processing industry should ensure stability for primary producers in terms of the market, and entities in the processing industry for continuity in the supply of raw materials of domestic origin. In order to improve product value chains, and thus the competitiveness of the national agri-food sector, it is necessary to improve productivity in primary production, horizontal and vertical integration, as well as additional investments in processing capacities. The key areas in the legislation and its implementation in order to improve the value chain of livestock products are: animal husbandry, hygiene on farms and in meat processing plants, as well as environmental protection. These are some of the priorities that should create the conditions for the possibility of exporting live animals, meat and meat products to the EU. Improving the milk value chain would contribute to better efficiency, competitiveness and sustainability of production, milk quality, especially in microbiological terms (reduction of the number of bacteria and somatic cells). Conditions should be created for the adoption of good agricultural practice, adaptation to market requirements, reaching standards in the field of animal welfare and health, improving the genetic potential of animals for milk production, hygiene and environmental protection. Quality is an important factor in competitiveness and sustainable agricultural production. As the main elements of the quality management system and adding value to products, the appropriate standards are applied: ISO 9000, HACCP, GMP, ISO 22000, ISO 14000, HALAL standard, Kosher standard, BRC standard, GOST-R standard, Demeter, GLOBAL GAP, IFS standard . In order to overcome and solve environmental problems of agricultural development, more and more importance is attached to the application of animal protection policy measures. Domestic and international standards and regulations for environmental management ISO 14001 are applied, including the EU Environmental Management and Audit Scheme (EMAS). Genetic potentials and biological diversification are important for the development and sustainability of agricultural production. The richness of flora and fauna, genetic resources and great biological diversity constitute natural comparative advantages in every respect, especially for sustainable agricultural production and environmental protection.

The developmental role of tourism in rural areas

Drago Cvijanović — 2024-03-29

Rural areas in the Republic of Serbia occupy about 85% of the territory, where about 55% of the total population lives, while in the Republic of Srpska rural areas occupy about 95% of the territory and about 83% of its population lives in them. Rural tourism is a common name for various activities and forms of tourism that occur outside cities, ie urban areas and those areas where mass tourism has developed. It is conditioned by the tourist attractions that are located in these rural areas. The importance of rural tourism is reflected, above all, in the very important interaction of agricultural production, traditional agri-food products, presentation of traditions, traditional gastronomy and tourist services, and the use of already existing resources. Considering that the statistics of rural development capacity in Serbia and Republic of Srpska are based on estimates, it is assumed that a significant part of overnight stays, which are realized in spa and mountain areas, can also be treated as realized overnight stays in the field of rural tourist offer. Observing the general state of rural development in the Republic of Serbia and the Republic of Srpska, it can be noticed that there are a number of limiting factors that condition the unenviable position of the rural tourist product on the tourist market. Some of them are as follows: low level of achieved quality of services provided, insufficient knowledge of new approaches to rural economy development in both competitive domestic and foreign tourism markets, lack of adequate institutional framework to ensure the coordinating role of the state and greater involvement of local authorities. in integrated rural development, poorly developed infrastructure, inadequate diversification of activities, dominance of sectoral policies. Respecting the census of agriculture and the statistical definition of agricultural holdings, the importance of a rural tourist household, ie a household located in a rural area and engaged in tourism, or as a more appropriate name for a tourist family farm must be mentioned. In addition to tourism in rural tourist households, in rural areas we encounter many special forms of tourism. Tourism in rural areas equally includes the activities of tourists (multi-day visitors) and excursionists (one-day visitors). Rural tourist households are generally considered to be basic rural tourism. However, for the development of rural tourism, not only rural tourist households are sufficient, but also other facilities on the rural tourist household itself and in the rural area. Other catering infrastructure is also needed: rooms and canopies for serving food, rooms for wine tasting, brandy, fruit and vegetable products, arranged approaches to the rural tourist household and parking lot, arranged tourist attractions (real, tourist available), restaurants, defined wine and brandy roads, marked bicycle and hiking trails, pilgrimage routes, receptive tourist agencies, ie designed and organized rural tourist destinations are needed, with all possible feasible contents of the tourist rural product. The quality of the rural tourist offer is affirmed as an important factor only in the new age, after it has been in the background for a long time, ie in the shadow of quantitative values. For each destination or company, it is important to be competitive in order to successfully sell their products on the market, and enable loyal tourists. In order for the quality to achieve its true level of development, certain specific circumstances should be determined, and that, along with modern technological development, is a very intensified competitive competition, especially pronounced on the global market.

Historical development, significance and application of marketing in agribusiness

Dalibor Dončić — 2024-03-29

Market conditions in which the agricultural sector does business are continuously changing and developing. The agricultural sector competes with the competition when the only constants in agricultural production are great turbulences of agroclimatic conditions, and permanent changes in the market. Those changes are happening rapidly, which causes oscillations in business results, and it often leads to disappointment and desertion of the agricultural sector, especially by young, mobile, and working people. This chapter aims to offer a concept of modern marketing, so its implementation into the agricultural sector would contribute to more efficient and effective work. Also, it would lead to better results for all partakers of agricultural sectors, especially agricultural producers. Today, the battle for a better and more profitable position of agricultural producers in domestic and foreign markets is unimaginable without applying strategies and tools of modern marketing. To master the competitive advantage and maintain it on the market for a long time is a complicated process for the biggest and richest companies of today. It is especially hard and complex for participants from the agricultural sector because of the countless specificities of agricultural producers, and agricultural production itself. The finding of the review and research is that domestic agricultural producers are the main, but the weakest link in the chain of the agricultural sector. They are faintly, or not at all prone to using marketing management, strategies, and tools of marketing, like market segmentation, targeting, product differentiation, as well as combining elements of the marketing mix in their business activities and their value offer to customers. By doing this, they significantly make their market position more difficult, and they reduce competitiveness on both domestic and foreign markets of agricultural products, or in a broader sense, the whole agricultural sector. The most current trends of modern marketing practice are represented in this review, together with solutions for their implementation into the agricultural sector.