Domestic processors facing challenges caused by the European crisis, market disruptions, and shortages of quality raw materials can now count on direct financial assistance from the Solidarity Fund of Republika Srpska to help them overcome these difficulties.
This support is regulated by a decree issued by the Government of Republika Srpska, which outlines the type of direct support available through the Solidarity Fund for the processing industry, the process for allocating funds, eligibility criteria, and the documentation required to apply for assistance. The decree came into effect yesterday.
According to the decree, the goal is to address the consequences in the processing industry caused by natural disasters, technical, technological, and environmental catastrophes, market disruptions, inflation, shortages of raw materials, or other unforeseen circumstances.
The decree specifies that businesses and entrepreneurs registered in Republika Srpska and operating within the processing industry are eligible for support. Applications are submitted to the Ministry of Economy and Entrepreneurship, while the final decision is made by the Solidarity Fund’s Board of Directors. The Ministry will maintain records of all recipients of direct financial support.
Minister of Economy and Entrepreneurship Vojo Mitrović stated to Glas Srpske that the decree was adopted to enable quick responses to processors’ requests.
“We have the potential to assist. Unfortunately, challenging times lie ahead, and we need to ensure that the Solidarity Fund remains well-funded and is used where it is most needed. The decree has just come into effect, and we have not yet received any requests, but we expect them in the near future. Orders are being canceled, and there are increasing demands regarding quality and price adjustments, all of which affect our processors,” said Mitrović. He added that the ministry is taking measures to help processors improve product quality and remain competitive.
Stevo Filipović, director of the food industry “Sava Semberija,” welcomed the government’s decision, emphasizing that without such support during recent crises, production would have ceased.
“For years, we have been operating under extraordinary conditions, from the 2008 economic crisis and floods in 2010 and 2014, to the COVID-19 pandemic in 2020 and the ongoing crisis caused by the conflict between Russia and Ukraine. These events have affected our market and operations, and without the measures implemented by the Government of Republika Srpska, the food industry here would no longer exist,” Filipović told Glas Srpske.
He highlighted that Western Europe remains a strategic partner for domestic processors, who export most of their products there, and disruptions in those markets directly impact local businesses through order reductions and pricing pressures.
“This year was marked by drought, and raw material quality was not at the desired level. About 90% of our raw materials are sourced within Republika Srpska. High quality is what allows us to compete with European producers, who benefit from significantly larger subsidies,” Filipović said.
The decision was also welcomed by Ahmet Hublić, director of “Voćar Promet” in Zvornik, who emphasized that any form of support is greatly appreciated.
“As the season comes to an end, we are already thinking about how to retain workers for the next six months until the new season begins, so they don’t lose their jobs and the company doesn’t lose skilled employees. It has been a challenging year, and what lies ahead remains uncertain. Orders are not what they used to be, and nothing is guaranteed anymore,” said Hublić.
Employment
For the first time in a long period, Republika Srpska recorded a 0.4% decrease in employment, with the biggest losses observed in the processing industry, which has shed 3,000 jobs over the past year.
According to data from the Republic Institute of Statistics, as of September 30, Republika Srpska had a total of 289,689 employed individuals, compared to 290,745 in the same month of 2023. The processing industry, which employs the largest workforce in the region with 56,130 workers, was hit particularly hard.
Source: Glas Srpske
