Economic analysis of corn silage production in Bosnia and Herzegovina

Silage production, or ensiling, is a specific technological process of processing and preserving certain forage crops with the help of lactic acid fermentation bacteria, which preserves the natural properties and nutritional value of the plants. Various forage crops are used for silage production, but the highest quality silage is obtained from corn, which is also the most widely used roughage in animal production. Between 2011 and 2020, the area sown with silage corn in Bosnia and Herzegovina increased by 39.7 %, total silage production by 78 %, and yield per hectare by 27.4 %. However, a satisfactory level of domestic production has not yet been achieved. Corn silage production in Bosnia and Herzegovina is predominantly concentrated on large farms oriented toward animal production. Therefore, the focus of this research was on two large cattle farms: “Farma Spreča” d.o.o. Kalesija (Farm A) and the Cantonal Public Enterprise “Poljoprivredno dobro Butmir” d.o.o. Sarajevo-Ilidža (Farm B). Primary data for the research were collected through semi-structured interviews with relevant representatives of these farms and by analyzing collected documentation. Production and economic indicators of corn silage production for the period 2016–2018 were identified and analyzed. Through analytical calculations, the scope and costs of corn silage production were determined for the total area and per hectare, as well as production value and indicators of financial results and cost-effectiveness. The research results show that during the 2016–2018 period, both farms achieved positive financial results in corn silage production, indicating economically viable production. In general, it can be stated that the economic indicators of corn silage production in Bosnia and Herzegovina show positive financial performance, but the production indicators point to the need for technical and technological improvements in order to achieve higher production volumes and better silage quality, and that it is necessary to manage production costs with the aim of reducing them.