FOSTERING AGRICULTURE MARKETS ACTIVITY (FARMA)

Development Challenge

Bosnia Herzegovina (BiH) has made significant progress in economic reforms in the recent past, however substantial reforms are still needed to meet the European Union’s (EU) accession criteria for economic readiness. As BiH prepares for accession into the EU, BiH producers will have to be able to withstand competitive pressures emanating from open borders and a globalized business environment. As a result producers are competing for domestic market share and global recognition of their products. BiH farmers and agro-producers have the potential to supply the country with many products that are now imported. Local consumers critically compare local products against international competition.

 

USAID/Sida Initiative

The United States Agency for International Development (USAID) and the Swedish International Development Cooperation Agency (Sida) have partnered in the implementation of a four year USD 14.0 million agri-business development program in BiH titled Fostering Agricultural Markets Activity (FARMA). Jointly they recognize the current conditions as challenges with significant opportunities.

The objective of FARMA is rapid, sustainable and broad-based economic growth through demand-driven assistance aimed at improving competitiveness of BiH agricultural producers and agricultural businesses. FARMA seeks to expand environmentally sustainable production, processing, domestic sales, export sales, and the production of value added agricultural and food products.

 

Planned Activities

FARMA will identify significant opportunities where targeted assistance can increase the value of the agricultural economy. FARMA will provide assistance or funding as appropriate to leverage the capability and investment of existing organizations and businesses in agricultural and food sectors.

FARMA will have staff in Sarajevo as well as in several regional offices throughout the country.

FARMA includes these activities:

The governments of the United States of America and Sweden have financed FARMA because they both recognize the potential of BiH agriculture. FARMA demonstrates their confidence in the agricultural sector of BiH to receive this assistance through a partnership and use it to have a positive economic impact.