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Wednesday, October 26, 2016

✈ Air transport of meat to Turkey is getting competition

Bosnia and Herzegovina has received approval from the European Union for transport of fresh beef and beef products across territory of European Union to Turkey and Russia, which will significantly reduce transportation costs, and possibly increase the purchase price of beef in Bosnia and Herzegovina.

Each country individually needs to approved the transport. In this case Bulgaria and Greece, either or both.

"We have been informed that we have received permission from Brussels and now we are at the stage of obtaining the consent of all the countries involved. It is a process that will take some time, but on the end, I believe that all countries will give the consent," said Mirko Šarovic, Minister of Foreign Trade and Economic Relations of Bosnia and Herzegovina, stressing that in the near future Ministry is scheduled to hold talks with Turkish representatives of the quota for export of the meat in the year 2017.

He also said that the provision of conditions for transport by road via Bulgaria significantly makes transport cheaper, which will put our products in more competitive place than is currently the case. Bosnia and Herzegovina is exporting meat to Turkey by air only because of the European Union law which does not allow land transport through its territory due to the fact that Bosnia and Herzegovina still does not have permission to sell  this type of goods on European Union market. Air cargo transport to Turkey as of now is paid by the meat purchaser in Turkey, which is directly reflected in lower price of meat in Bosnia and Herzegovina. Transport by land will benefit Bosnian farmers the most, but same time it will hurt the airports!

According to unofficial information from the one of Bosnian airports, the air transportation of meat from Bosnia and Herzegovina to Turkey costs about 5.000 euros per flight (60 tons). The price of truck transportation of 25 tons of meat would be around 1.500 to 1.800 euros, depending on the destination in Turkey.

This approval from EU, could have negative effect on airports in Bosnia and Herzegovina, especially Tuzla International Airport, since all meat export from Bosnia and Herzegovina to Turkey goes from Tuzla Airport. In 2015 MNG Airlines Cargo transported meat from Bosnia and Herzegovina to Turkey from Banjaluka International Airport, while in 2016 Tuzla Airport scored the deal of organizing the transport of meat from Bosnia and Herzegovina to Turkey. Cargo flights are very profitable for airports, bringing around 1.000 euros per flight to the airport. Loosing these flights would mean big financial loos for Tuzla International Airport.

Tuzla International Airport Cargo flights in 2016.


2016 TOTAL

Source: Oslobodjenje and FlyingBosnian

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