EU4AGRI: Transforming the agri-food sector and rural development in Bosnia and Herzegovina

Launched in May 2020, the EU4AGRI project—a flagship initiative financed by the European Union and implemented by UNDP in partnership with the Czech Development Agency—has made a transformative impact on the agri-food sector and rural development across Bosnia and Herzegovina.

From its inception, EU4AGRI was designed to operate in full alignment with the Strategic Plan for Rural Development of BiH (2018–2021) and later contributed to the formulation of the 2023–2027 Strategic Plan, officially adopted by the Government of the Federation of BiH. Rooted in the principles of the EU Common Agricultural Policy, the project supported the sector’s modernization through targeted investments, capacity-building, and digital innovation.

Through its expert support and technical assistance, EU4AGRI significantly contributed to policy development, particularly in the drafting of the Law on the Organization of the Wine Market in Bosnia and Herzegovina that was adopted in 2023, along with its accompanying by-laws pending adoption. The project also supported the development and preparation of several strategic documents, including:

• The Strategy for Agriculture and Rural Development of the Federation of BiH 2021–2027, 
  The Strategic Plan for Rural Development of Bosnia and Herzegovina 2023–2027, 

The Advisory Services Development Strategies for both - the Federation of BiH and the Republika Srpska.

2020–2025: Expanding reach and deepening impact

Over its implementation period, EU4AGRI launched 24 public calls, allocating EUR 14.88 million in EU assistance. This investment leveraged an additional EUR 8.27 million in private sector contributions, culminating in a total of EUR 23.15 million in supported investments across Bosnia and Herzegovina.

Through these investments, the project:

• Supported 211 investment projects,

• Reached 2,040 agri-food operators,

• Created 307 new jobs (including 144 for women and 188 for youth),

• Increased targeted agri-food operator revenues by 54%, more than doubling the initial target.

Among the 2,082 stakeholders supported, 1,623 were small farm holdings (individual farmers). Additionally, the project worked with 28 local governments, 6 science and research institutions, and 8 advisory service providers, enhancing both grassroots and institutional capacities.

Driving innovation and building capacities

EU4AGRI delivered its interventions through a Grant Investment Package (GIP) mechanism, supporting 211 projects focused on:

• Primary agricultural production,

• Processing and marketing of agro-food products,

•  Introduction of standards and certification in agricultural and food production, 

• Support consulting service providers in identifying financing opportunities and preparing business plans

• ICT innovation in agriculture,

• Supporting agricultural extension delivery and linking science to farming,

• Agri-tourism,

• Diversification of social and economic activities in rural areas,

• Rural infrastructure development.

Bringing innovation to the fields and Institutional capacity-building

From the outset, a defining feature of the EU4AGRI project has been its strong focus on digital transformation and modernization within the agricultural sector. Recognizing that innovation must go hand-in-hand with institutional resilience, EU4AGRI launched a comprehensive approach that integrated technological advancement with institutional development—empowering rural communities and enhancing service delivery across Bosnia and Herzegovina.

Early in the project, significant efforts were directed at strengthening the agricultural advisory system through targeted capacity-building and the establishment of a knowledge transfer facility. This laid the foundation for more effective, evidence-based support to farmers and rural producers, ensuring that modern practices and EU-aligned policies reach the grassroots level.

To reinforce institutional capacities, EU4AGRI delivered tailored technical assistance to key ministries at the entity level and in the Brčko District. One of the most important milestones was the development and successful transfer of an online advisory platform to the Federal Ministry of Agriculture, designed to enhance support to farmers and enable direct communication between advisors and end-users—fostering collaboration, knowledge exchange, and better sector coordination.

The project also delivered on its promise to bring innovation to the field. Through the installation of 15 new meteo-stations in 2023 and accompanying forecasting software, climate resilience in agriculture—especially viticulture—was strengthened by improving pest and disease management. Parallel to this, a Wine and Vine Register system, aligned with the EU Acquis Communautaire, was developed to enhance traceability and facilitate EU market access for BiH winemakers. Complementing this was the EU4AGRI's technical support for the adoption of the Wine Market Law, now in force and contributing to harmonized sector regulation.

A standout success of EU4AGRI’s digital agenda is its grant management software, originally developed to streamline the implementation of the Grant Investment Package (GIP). This platform gained national recognition in 2024, when the Federal Ministry of Education and Science adopted it to manage scientific research project calls, followed by its use for two consecutive years by the Federal Ministry of Development, Entrepreneurship, and Crafts. Currently, discussions are underway with the Government of Republika Srpska to adopt this digital tool as a unified system for managing public calls across ministries—demonstrating EU4AGRI’s broader impact as a catalyst for institutional innovation and digital governance.

In total, investment in digitalization under EU4AGRI reached EUR 4.59 million, of which EUR 2.96 million came from EU funds and EUR 1.63 million was co-financed by beneficiaries. This commitment reflects a long-term vision of a more sustainable, competitive, and technologically advanced agri-food sector.

The EU4AGRI project has introduced innovative solutions that are not only protecting the environment but also ensuring the resilience of local farmers against the ever-growing threats of climate change. For years, farmers in Bosnia and Herzegovina struggled with erratic rainfall, droughts, and soil depletion—challenges that intensified due to climate change. But through EU4AGRI, change has come. The project has directly supported over 2,000 agri-food operators, helping them transition to greener, more sustainable practices​.

Beyond individual businesses, the project has invested in climate-smart agriculture across Bosnia and Herzegovina. Farmers have adopted innovative technologies such as drones for precision farming, reducing water and pesticide usage. 

As part of its commitment to climate change adaptation and low-emission development strategy, UNDP has worked on integrating green measures into development projects. Through its initiatives, UNDP has encouraged the adoption of energy-efficient technologies, the expansion of reforestation projects, and the promotion of circular economy practices​.

The total investment in climate change through the EU4AGRI project, including EU funds and co-financing from users, amounts to EUR 4,19 million demonstrating a strong commitment to mitigating and adapting to climate change in Bosnia and Herzegovina's agri-food sector. This investment not only boosts the resilience and competitiveness of agricultural producers but also establishes the foundation for a sustainable and technologically advanced sector that can effectively respond to climate challenges in the future. The total investment in climate change through the EU4AGRI project is EUR 3,14 million with total co-financing from users amounting to EUR 1,05 million.
 

Ensuring knowledge sustainability

Throughout its duration, the project organized over 30 workshops and training sessions, focusing on strategic planning and policy monitoring,. Despite facing unprecedented challenges, including the COVID-19 pandemic and global economic uncertainty, EU4AGRI exceeded nearly all performance targets. It highlights the strategic efforts made to strengthen the knowledge, skills, and operational capabilities of institutional partners—such as government ministries, public advisory services, and local authorities—in areas critical for the sustainable development of agriculture and rural communities in BiH. The 30+ workshops and training sessions focused on:

• Strategic planning (e.g., rural development policies aligned with EU CAP),

• Policy monitoring and evaluation, and

A legacy of resilience and empowerment

EU4AGRI leaves behind a robust foundation for future growth. It empowered local communities, strengthened institutions, enhanced climate resilience, and paved the way for Bosnia and Herzegovina’s deeper integration with EU agricultural and rural development standards. Its legacy continues to shape a more modern, sustainable, and inclusive agri-food sector in the country.

Today, the ARD sector in BiH is enriched for 2,600 individual people, agri-food companies and entrepreneurs, farmers, universities, research institutions and companies, local self-governments and institutions at state/entity/cantonal and local levels that had an opportunity to develop through both financial and non-financial Project incentives. This is a serious asset, a critical mass that can accelerate rural development of BiH. This is a sectoral social capital and legacy of the Project that, if properly nurtured, has a strong chance of flourishing in years to come.