Report Highlights:

The Spring planting which started in early April is still on-going. Corn will be planted on approximately 199,500 hectares (ha) versus the 169,948 ha in 2014/2015, which is a seventeen percent increase. This could translate into a yield of 740,000 metric tons (MT), up from 628,800 MT in 2014/2015. The Entities' Ministries of Agriculture also announced the planted area for oats will increase from 9,821 ha to 11,133 ha, which could translate into a yield of approximately 30,280 MT. The 2015/2016 wheat area significantly decreased (-26 percent), due to the May 2014 floods, land contamination, and increased soil humidity during the planting season. Thus, this year's wheat will be harvested from a planted area of 43,836 ha and is expected to yield 114,000 MT versus the 154,240 MT harvested in 2014.

General Information:

Wheat

Winter wheat was sown in 2015/2016 on 43,836 hectares. With an average yield of 2.6 metric ton/hectare (MT/ha), a total yield of approximately 114,000 MT is expected. The wheat area is significantly decreased (-26 percent) from 2014/2015, when 154,240 MT was harvested from 59,110 ha. This decline occurred following the May 2014 floods, land contamination, and increased soil humidity during the planting season.

Corn

Corn planting, which is usually done in the first half of April, is still ongoing in areas with higher elevations. Farmers are reporting that the weather and soil conditions for corn planting are ideal. Corn will be planted on approximately 199,500 hectares (ha) versus the 169,948 ha in 2014/2015, which is a seventeen percent increase. This could translate into a yield of 740,000 MT (an average of 3.7 MT/ha), up from 628,800 MT in 2014/2015.

Oats, Barley and Rye

The Entities' Ministries of Agriculture announced the planted area for spring oats will increase from 9,821 ha in 2015/2016 to 11,133 ha, which could translate into a yield of approximately 30,280 MT (an average of 2.7 MT/ha).

The areas for winter barley and rye are significantly decreased following the record floods in May 2014 that affected the land quality, but also due to increased soil moisture during the planting period.

Winter barley was sown on 14,237 ha and an expected yield is 38,440 MT (an average of 2.7 MT/ha). The barley area is significantly decreased (-22 percent) from 2014/2015, when 44,125 MT was harvested from 18,268 ha.

Winter rye area decreased from 3,566 ha that yielded 9,041MT in 2014/2015 to 2,803 ha that is expected to yield 7,570 MT in 2015/2016 (an average of 2.7 MT/ha).

Trade

BiH does not produce enough grains for its needs and is highly dependent on imports. The country's annual needs are approximately 500,000 MT of wheat and 1,000,000 MT of corn. In 2014, BiH imported 345,051 MT of wheat valued at $81.1 million (KM 143.8 million) mainly from Hungary, Serbia, and Croatia. In the same year, BiH imported 226,511 MT of corn valued at $49.5 million (KM 87.9 million). Approximately 96 percent of the imported corn came from Serbia.

In 2014, the 24,226 MT of barley imports were valued at $4.7 million (KM 8.3 million), while the oats imports of 3,198 MT were valued at $652,400 (KM 1.2 million) and the rye imports of 755 MT were valued at $141,000 (KM 249,900).

Grain exports are insignificant.

BiH's grain market is quite small and grain mills are unable to hold large stocks, thus the effect of global grain price fluctuations is significant. The current wheat market price ranges from $207/MT to $220/MT (KM 363/MT – KM 386/MT), while corn prices range from $202/MT to $216/MT (KM354/MT – KM 378/MT).