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Analysis of the Forest Sector in Bosnia and Herzegovina

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Analysis of the Forest Sector in Bosnia and Herzegovina This project is funded by the European Union Please address comments and inquiries to: Regional Offi ce for Europe and Central Asia Food and Agriculture Organiza on of the United Na ons (FAO) The Forest Sector in Benczúr u. 34, 1068 Budapest, Hungary Telephone: (+36) 1 461 2000 Fax: (+36) 1 351 7029 Bosnia and Herzegovina Email: [email protected] Website: www.fao.org/europe/en Preparation of IPARD Forest and Fisheries Sector Reviews in Bosnia and Herzegovina 22 January 2015 The Forest Sector in Bosnia and Herzegovina FAO Regional Offi ce for Europe and Central Asia 22 January 2015 The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views or policies of AO.F © FAO, 2015 FAO encourages the use, reproduction and dissemination of material in this information product. Except where otherwise indicated, material may be copied, downloaded and printed for private study, research and teaching purposes, or for use in non-commercial products or services, provided that appropriate acknowledgement of FAO as the source and copyright holder is given and that FAO’s endorsement of users’ views, products or services is not implied in any way. All requests for translation and adaptation rights, and for resale and other commercial use rights should be made via www.fao.org/ contact-us/licence-request or addressed to [email protected]. FAO information products are available on the FAO website (www.fao.org/publications) and can be purchased through [email protected]. Analysis of the Forest Sector in Bosnia and Herzegovina EU funded project “Preparation of IPARD Forest and Fisheries Sector Reviews in Bosnia and Herzegovina” Regional Office for Europe and Central Asia Food and Agriculture Organization of the United Nations This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of the Regional Office for Europe and Central Asia of the Food and Agriculture Organization of the United Nations and can in no way be taken to reflect the views of the European Union. Contents ABBREVIATIONS, ACRONYMS AND CURRENCY EQUIVALENTS 1 Introduction 3 Report structure 3 Study team 3 Acknowledgements 3 1. Executive Summary 6 1.1 Background objectives and outcome 6 1.2 Methodology 7 1.3 Description of the sector 7 1.4 Recommendations 7 2. Background and context for the sector analyses in BiH 11 2.1 General information about BiH 11 2.2 Context and objective of the sector analyses 12 2.2.1 General Context of the sector analyses: Preparation for EU accession 12 2.2.2 Objectives of the forest sector report 13 2.3 Methodology of the forest sector report 14 2.4 General economic indicators for Bosnia and Herzegovina 15 2.4.1 Demography 15 2.4.2 General economic indicators 15 2.4.3. Agricultural indicators 17 3. Forest resources and management in BiH 19 3.1 Statistical data sources 19 3.2 Forest area and other wooded land 19 3.3 Structures: high forests and coppice forests 21 3.4 Wood resources and carbon stocks in forests 22 3.5 Forest types and generic management regimes 22 3.6 Forest health and damages 27 3.7 Production of forest goods 29 3.8 Summary 31 4. Land use and land use change 33 4.1 Land use change patterns in BiH 33 4.2 Demographic changes 35 4.3 Competing land use forms 38 4.4 Impacts on forests 39 4.5 Summary 41 5. The forest-based sector 42 5.1 Definition of the sector 42 5.2 Forestry 43 5.2.1 Land ownership structure 45 5.2.2 Employment 48 5.2.3 Income structure and revenues 49 i 5.2.4 Investment needs 50 5.2.5 Contribution to GDP 51 5.3 Sawmilling and manufacturing 52 5.3.1 Enterprise structure 53 5.3.2 Employment 54 5.3.3 Revenues 55 5.3.4 Capital structure and investment needs 56 5.3.5 Contribution to GDP 59 5.3.6 Trade balance 59 5.4 Pulp and paper 59 5.4.2 Employment 61 5.4.3 Contribution to GDP 62 5.5 Fibre industries 62 5.6 Bioenergy 62 5.6.1 The potentials of woody biomass in BiH 63 5.6.2 Enterprise structure 66 5.6.3 Trade balance 66 5.6.4 Investment needs 68 5.7 Summary 68 6. Forest-based products, services and value chains 70 6.1 Wood availability and balances 70 6.1.4 Demand for private wood 73 6.2 Forest-based value chains - Trade and marketing 74 6.2.1 Wood products trade patterns 74 6.2.2 Marketed and non-marketed non-wood forest products 82 6.2.3 Associations and sectoral clusters 87 6.2.4 Example for a business network in the forest-based sector 89 6.2.5 Innovation in the forest-based sector 89 6.3 Forest technology and infrastructure 90 6.3.1 Technology and contracting 90 6.3.2 Accessibility of forests 94 6.4 Forest Services 95 6.4.1 Societal demands – a case study 95 6.4.2 Carbon sequestration projects and contribution to climate change policies 97 6.4.3 Forest protection and protective services 99 6.4.4 Biodiversity conservation and management 102 6.4.5 Forest certification in Bosnia-Herzegovina 104 6.5 Summary 106 7. Policy and governance 108 7.1 Legal framework 108 7.2 Organization of the forest sector 110 7.2.1 Institutional set-up in FBiH 110 7.2.2 Institutional set-up in RS 111 ii 7.3 Assessment of institutional conditions in BiH 111 7.4 Policy impact on sustainable forest management in BiH 109 7.5 Influence of global initiatives on forest-related policies 113 7.6 Summary 115 8. Level of attainment of relevant EU standards 116 8.1 Combating illegal logging 116 8.2 EU Timber regulation 116 8.3 Phytosanitary standards 118 8.4 Product standards 119 8.5 Production of seed and seedlings 120 8.6 Summary 122 9. Qualifications and education 123 9.1 Forest education schemes 123 9.1.1 Secondary 123 9.1.2 Tertiary 125 9.2 Post-educational trainings and qualification instruments 127 9.3 International education programmes 128 9.4 Research in the forest sector 129 9.5 Summary 130 10. SWOT analysis 131 10.1 SWOT workshops 131 10.2 SWOT results 131 11. Recommendations: priorities for action and investment needs 138 11.1 Priorities for action 141 11.1.1 Axis 1 - Improving market efficiency and implementing community standards 141 11.1.2 Axis 2 - Preparatory actions for implementation of the agri-environmental measures and Leader 143 11.1.3 Axis 3 - Development of the rural economy 143 11.1.4 IPA II forestry measures 145 11.5 Investment needs 145 iii ABBREVIATIONS, ACRONYMS AND CURRENCY EQUIVALENTS BAM Bosnian Convertible Mark BD Brčko District BiH Bosnia and Herzegovina ca Circa CFMC Cantonal forest management companies CFO Cantonal Forest Office EC European Commission EEA European Environmental Agency EU European Union EUR Euro EUTR EU Regulation 995/2010 EUVET European Union Vocational Education and Training FADN Farm Accountancy Data Network FAO Food and Agriculture Organization of the United Nations FBiH Federation of Bosnia and Herzegovina FFI FBiH Forest Inspection FFO FBiH Forest Office FHI Forest and Hunting Inspection FIRMA Fostering Interventions for Rapid Market Advancement FMA Forest Management Area FMU Forest Management Unit FP Forest Programme FSC Forest Stewardship Council GDP Gross domestic product GFRA Global Forest Resource Assessment GOVOR The adaptation of national forest policy systems in South-East European coun- tries (Bosnia-Herzegovina, Croatia, Macedonia and Serbia) to new modes of international forest governance ha Hectare HCVF High Conservation Value Forest INC Initial National Communication IPA Instruments for Pre-Accession Assistance IPARD Instrument for Pre-Accession Assistance for Rural Development JSC Joint Stock Company km2 Square kilometre m³ Cubic meter MAFWM RS Ministry of Agriculture, Forestry and Water Management of Republika Srpska MAWMF FBiH Ministry of Agriculture, Water Management and Forestry of the Federation of Bosnia and Herzegovina MEUR Million Euros MoFTER Ministry of Foreign Trade and Economic Relations of BIH 1 NEAP National Environmental Action Plan NFI National Forest Inventory NWFP Non wood forest products PFMC Private Forest Management Company REU FAO Regional Office for Europe and Central Asia RS Republika Srpska SAA Stabilization and Association Agreement SFM Sustainable forest management SIDA Swedish International Development Cooperation Agency SWOT Strengths, Weaknesses, Opportunities and Threats (analysis) tce tonne of coal equivalent TFYRM The Former Yugoslav Republic of Macedonia thd Thousand toe Ton of oil equivalent UN United Nations UNDP United Nations Development Program UNFCCC United Nations Framework Convention on Climate Change USAID United States Agency for International Development WC-BiH Wood Cluster Association Bosnia and Herzegovina WP&F Cluster Wood Processing and Forestry Cluster 2 Introduction Study team This is one of the seven sector analyses (Meat This review was elaborated by Dr.
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