1. PROJECT TITLE

Revitalization of the production of seed potato and small grains seed and forage crops in the Institute for the improvement of agriculture of hilly and mountains areas of the municipality of Sokolac

2. SECTOR

Agriculture

3. LOCATION

The Municipality of Sokolac

4. BRIEF PROJECT DESCRIPTION

A Center for the improvement of agriculture in a hilly and mountainous area was built in the municipality of Sokolac in 1985, which operated until 2009. Public utility Agricultural institute of the Republic of Srpska, the city of Banja Luka assumed the Center by the Decision of the Government of the Republic of Srpska in 2015. The state in which the Center was assumed (facilities, equipment) does not provide for the continuation of its functioning without complete revitalization, which requires substantial finances. Taking into consideration the importance of the Center for agriculture of the Republic of Srpska, the Institute suggests the project for the revitalization of the Center and restoration of its original function. The term revitalization implies the adaptation of the existing facilities
(administration building, laboratories, greenhouses, farm safety nets, storage, boilerroom, infrastructure) and procurement of the necessary machinery and equipment. In the following text there is a short description of the importance of the plants which were used in the Center, and which will be used after enabling the functioning of the Center.
Potato is considered as a very important food for human diet in BiH. The average potato consumption per capita is 67,5 kg per year. BiH has a great potential and a long tradition of the production of the quality mercantile potato. In BiH, at the same time there are areas with favorable characteristics for the production of quality seed potato.
Nevertheless, there has been a negative trend of 3-5% in the production of potatoes in the last five years. It was also noted that there was a reduction of the areas under potatoes in the RS. The average potato yield (about 10.5 t/ha) is four times lower than the yield in some western European countries, such as the Netherlands, Belgium and
Great Britain.
The overall production of the seed potato in the RS is about 1300 t, which is 4% of the market demand. At the moment, in the RS there are only a few companies for the production of the seed potato, which import the seed potato of higher categories from the Netherlands, augment it, improve it and place it on the market. From the stated information it is visible that there is a great potential of the market in the RS for the seed potato. By revitalizing the Center for the improvement of agriculture in a hilly and mountainous area the market would have higher amounts of quality and certified seed, which is the first and the most important precondition for yield augmentation, quality and
profitability of mercantile potato in the RS and BiH.
There were two centers for the production of virus-free seed potato in the former Yugoslavia – one in Slovenia and the other one in the municipality of Sokolac. The center in Slovenia does not supply the market in BiH with the seed potato. Well-organized, operational and efficient Center for the improvement of agriculture in a hilly and mountainous area in the municipality of Sokolac represents the best solution for the market supplying of the RS and BiH with the quality seed potato.
The territory of the RS, as well as BiH, is appropriate for livestock production, for which it is necessary to ensure quality fodder. One of the tasks of this project will be to test and introduce new plants and types of forage crops in the production, as well as to research the technology for their production.
Growing small grains (wheat, barley, oat, rye, triticale) has a long tradition in a hilly and mountainous area, and due to this the Center will continue to introduce domestic varieties of the PU Agricultural institute of the Republic of Srpska, the city of Banja Luka in this area.

5. PROJECT DETAILS

5.1 What type of project is it?

Brownfield

5.2 Project status

Business idea

5.3 Reasons to invest in the project

On the market there is a huge deficit of the domestic production of the seed potato, small grains seed and forage crops. Domestic production only meets 4% of the requirements for the seed potato, 10% of small grains and 20% of grass seed. The demand for the quality seed potato, small grains seed and forage crops is the main motivating factor for investing in this project.

6. PROJECT FINANCING:

6.1 Estimated project value in €

600.000

6.2 Planned sources of financing

Public-private partnership

6.3 Inputs by local partner

PU Agricultural institute of the Republic of Srpska: Land. The existing facilities, equipment and infrastructure. Varieties and hybrids. Expert staff. Workforce.

6.4 Inputs by investor

Financial assets for the implementation of the said project, as well as possible donations with the aim of promoting an investor.

7. Has physical location for project implementation been identified

The municipality of Sokolac. The Center is in the ownership of PU Agricultural institute of the Republic of Srpska, the city of Banja Luka.

8. Have the activities on project implementation already started

Yes, preliminary design has been done and the preparation for the construction part of the project has been started. Also, the initial production of the forage crops seed has been established and a part of the administration building has been designed.

9. Project applicant and contact information

PU AGRICULTURAL INSTITUTE OF THE REPUBLIC OF SRPSKA, Banja Luka
Contact: Prof. Dr. Vojislav Trkulja
Telephone: +387 51 311 313
E-mail: v.trkulja@blic.net