The situation of production and purchase of raw milk in Bosnia and Herzegovina.

This paper analyzes the production of milk as one of the most important branches of agriculture, which has been and should remain the backbone of its further development. The structure of agricultural production in Bosnia and Herzegovina is unfavorable. Share of livestock production in the value of total agricultural production is about 40%. The main problems that face livestock and animal production in Bosnia and Herzegovina are small production, excessive imports, unfavorable structure of production, and low price of milk purchased and a very low standard of producers who are on the edge of existence. Milk production in BiH, unfortunately, is still underdeveloped, disorganized and often does not meet the needs of industrial dairy processing capacity. Only 5% of milk producers with produced the quantity and quality of milk is fitting with their results in the requirements of market economy. Larger quantities of produced cow’s milk do not meet the criteria of quality, particularly hygienic criteria in accordance with the requirements of international standards and quality regulations. Milk processing (and the market) and the consumption of milk and dairy products is the consequence of the unfavorable economic situation, decreasing living standards and purchasing power, and insufficient education of consumers about the importance of milk and milk products in the daily diet. Dominant production system are small farms (1-3 cows) dealing with mixed livestock production, with the primary goal of self-sufficiency. The data used in the paper were derived from statistical agencies, as well as his own research in the 6 largest milk processors in BiH (purchase and processing about 85% of total milk purchased in BiH). Number of dairy farmers of these 6 is 15,311, who own a total of 42,364 dairy cows. Average per cooperant is 2.77 cows. Average milk production per dairy cow is 4.081 liter. Milk quality in accordance with Milk quality decree is unsatisfactory. E-class quality of the milk is only 42%, and worrying data is constant increase the milk quantity which, in accordance with the Decree, puts the raw milk outside of the class (2012th year 26%).