Policy Measures onto Increase of Cattle Production in Bosnia and Herzegovina

Bosnia and Herzegovina has a defi cit of most agricultural products, and that is why it is compelled to import signifi cant quantities of food. In order to increase the degree of self-suffi ciency, particularly for those products that have good potentials for production growth, creators of agrarian policy try to apply diff erent agrarian policy measures for stimulation of agricultural production growth. One production with good potential is cattle production, i.e. production of milk and meat, for which Bosnia and Herzegovina has signifi cant development potentials, and for whose advancement there have been provided diff erent supporting measures. Th is paper presents the possible application of the cost-benefi t analysis in evaluation of effi ciency for some supporting agrarian policy measures adopted in order to improve the cattle production in Bosnia and Herzegovina . Th e cost-benefi t analysis was completed for the sixyear period, taking into account the productive period of bought heifer. Th e analysis includes economic and fi nancial parameters (infl ows and outfl ows), which annual amounts were discounted to the present values by utilization of the average social discount rate, in order to put all annual amounts at the same trend of calculation and to account for opportunity capital costs as well.