The construction of a modern dairy processing plant in Prnjavor, valued at approximately one million convertible marks (BAM), is entering its final phase and represents one of the most important capital projects in the dairy industry of the Republic of Srpska.
With an initial processing capacity of 3,000 liters of milk per day, the facility is expected to become a central pillar in strengthening domestic milk processing, improving the competitiveness of local dairy producers, and reducing dependence on imports.
Why Prnjavor? A Location That Guarantees Success
Prnjavor was selected as the location for the new dairy plant due to its favorable geographic position—close proximity to the highway, a well-developed agricultural network, and the availability of high-quality raw milk.
The project involves dairy farmers from across the Republic of Srpska, including leading producers such as Milorad Arsenić, who produces approximately 1.6 million liters of milk annually.
“This project is crucial for the survival of dairy production. Our goal is to elevate the entire sector and secure our own processing capacities,” said Arsenić, President of the Association of Dairy Farmers of the Republic of Srpska.
The structural construction of the facility has been completed, and the production focus will be on domestic cheeses—products with the highest market demand and the greatest level of value-added processing.
Miljan Erbez, an expert from the Association of Dairy Farmers, emphasizes that the greatest opportunity lies in cheese production:
“More than 60% of imports are cheeses, which means there is enormous potential to replace these products with domestic ones. With government policies and sector support, we can achieve significant results.”
Strong Dairy Base and Local Government Support
Prnjavor already ranks among the strongest dairy centers in the Republic of Srpska, with approximately 10.5 million liters of milk collected annually—second only to Bijeljina and Gradiška. The city continuously increases agricultural incentives, allocating 620,000 BAM this year alone to support agricultural production.
Support from the Line Ministry and Multi-Million Investments
The Ministry of Agriculture, Forestry and Water Management of the Republic of Srpska has provided significant support to farmers in Prnjavor, with approximately 29 million BAM in incentives paid over the past three years.
Minister Anđelka Kuzmić emphasized that the government will remain a strong partner to dairy producers:
“If additional measures are needed to accelerate construction or ensure the fastest possible delivery of final products, we are ready to act.”
Prnjavor stands as an excellent example of cooperation between local authorities and entity-level institutions.
The Strategic Importance of the Dairy Industry
The dairy industry is one of the most important agricultural sectors in the Republic of Srpska and Bosnia and Herzegovina. It:
• ensures stable milk purchase for thousands of domestic producers,
• supports rural development and job creation,
• represents a significant export-oriented sector,
• enables import substitution with domestic products, particularly cheeses and dairy products,
• strengthens food security and self-sufficiency.
The construction of the dairy plant in Prnjavor represents a strategic step toward reducing imports—especially cheeses, of which Bosnia and Herzegovina imports tens of millions of BAM worth annually. The modern facility will allow processors to finalize domestic milk production, increase added value, and develop strong local brands.
Tourism Development and Additional Investments in Prnjavor
Alongside the development of the dairy industry, Prnjavor is also investing in other strategic projects. With the support of the Government of the Republic of Srpska, conditions have been improved at the Vučijak Stud Farm, one of the region’s most significant tourism assets.
Stud farm director Ranko Grubešić announced the introduction of group tourist horseback riding starting in 2026, along with continued investments in infrastructure and tourism facilities. Discussions are also underway regarding the reconstruction of buildings and further development of this area.
Prnjavor Emerging as a Center of Dairy and Agro-Industry
The completion of the dairy plant in Prnjavor will bring new jobs, secure milk purchase for dairy farmers across the Republic of Srpska, increased domestic milk processing, stronger rural and local economies, reduced import dependence, and the development of domestic brands.
This project demonstrates how synergy between local communities, entity institutions, and producers can create strong economic momentum and a long-term strategic advantage in the dairy sector.
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