DAIRY PRODUCTION AND FOREIGN TRADE OF MILK AND DAIRY PRODUCTS IN BOSNIA AND HERZEGOVINA

Dairy production and milk processing are one of the main strategies goals of agricultural sector in Bosnia and Herzegovina.Though, there is permanent growth in the last period at all levels, this sector characterizes small milk yields per dairy cow (about 2,500 kg), low percent milk collection, poor quality of fresh milk and low percent used of dairy capacity.One of limited factors for increase in the dairy sector is poor production assortment in dairies.That assortment is based on products with lower value added and the UHT sterilized milk is dominated product.There is permanent foreign trade deficit in this sector and the imported value is larger for 145 % than the imported value in 2008.The main of BH trading partners is Croatia and nearly half part value of milk and dairy products imported from this country in 2008.The main dairy export destination is Croatia with a share of 67.3 % and Macedonia with a share of 13.5 % in 2008.