According to APIF data, the number of business entities remained the same in 2015 as in 2011 (27), with a slight increase in 2012 (28) and a decline in 2013 and 2014 (25 each), indicating a static local economy. The number of employees in the economy also remained nearly the same, with 140 in 2011 and 138 in 2015, showing small fluctuations in between (145 in 2012 and 135 in 2014). Encouraging trends include a revenue increase of 23.63% (from 14,303,206 BAM in 2011 to 17,683,081 BAM in 2015) and a rise in added value by 43.45% (from 3,149,126 BAM in 2011 to 4,517,521 BAM in 2015). The significant fluctuations in financial results (a loss of 63,859 BAM in 2014 and a profit of 519,621 BAM in 2015) were not due to business instability in the local economy but rather to major investments in the food industry (IMEL d.o.o.) and losses incurred by Stijena Herc d.o.o. in other business units across the country during 2014.
Compared to 2009, when 39 companies were officially registered, the decline in the number of companies appears more significant. Bankruptcy proceedings were completed for several companies, including Soko-Guma, Soko-FTS, Ljubinje, Atlas Wood, and Techno-Prom, leading to a decrease in the number of businesses and consequently in employment. These companies were not actively operating even before their closure, with employees technically listed as employed but not receiving salaries. Following bankruptcy, some employees who met pension requirements retired, while others (80 workers) were registered as unemployed with the RS Employment Service.
In terms of business structure, poultry farming companies led in revenue generation (40.46% of total municipal revenue in 2014 and 38.48% in 2015) and employment (36% of 135 total employees in 2014 and 33% of 138 in 2015).
Exports increased by a modest 4.14%, from 1,398,790 BAM in 2011 to 1,456,745 BAM in 2015. The local economy is not export-oriented, with the transport sector dominating exports (68%), although growth has been recorded in the export of medicinal herbs and metal processing.
The number of active retail businesses declined from 31 in 2011 to 26 in 2015 (-16%), with employment falling from 54 to 35 (-35%). The most significant decline was between 2014 and 2015, dropping from 50 to 35 (-30%).
The number of active hospitality businesses increased from 17 in 2011 to 20 in 2015 (+18%), though employment fell from 30 to 24 (-20%), mainly between 2014 and 2015 due to reduced workload and income.
The number of craft businesses grew from 14 in 2011 to 20 in 2015 (+30%), with employment rising from 14 to 24 (+71%), mainly between 2014 and 2015 (+60%). This increase resulted from an RS Employment Service program supporting self-employment with financial incentives, but many of these businesses closed after meeting their contractual obligations.
The number of transport service businesses fell from 3 in 2011 to 2 in 2015 (-33%), with employment decreasing from 3 to 1 (-67%).
The number of independent agricultural businesses grew significantly, from 1 in 2011 to 9 in 2015 (+800%), with employment also rising from 1 to 9 (+800%), driven by agricultural incentives from the RS Employment Fund.
According to APIF records, in 2015, a total of 230 farms and 5 legal entities were registered. There were 42 commercial and 184 non-commercial farms. The number of commercial farms increased, likely due to changes in agricultural subsidy regulations. The number of registered farms fluctuated annually (383 in 2011, 430 in 2012, 460 in 2013, and 165 in 2014). The lower number of registered farms in 2014 and 2015 was probably due to additional registration requirements and farmers’ concerns about mandatory tax and contribution payments. Policy instability in agricultural subsidies may also be a contributing factor. In 2015, the first-ever Agricultural Incentives Law was adopted, which should provide better regulation and reduce fluctuations in farm registration numbers.
A 2014 municipal economic survey recorded 703 farms, with most located in Ljubinje (429), followed by Dubočica (33), Ubosko (30), Kruševica (29), and Krajpolje (28).
The primary agricultural sectors are fruit growing, livestock farming, and crop production. There is a declining trend in tobacco cultivation (due to low premiums and plant diseases) and an increasing trend in vegetable and medicinal herb farming. The livestock population has remained stable. An irrigation reservoir has been built but is only partially used due to the lack of pipelines. A second reservoir is under construction to further support agricultural development.
Among new investments, medicinal herb cultivation stands out, particularly Helichrysum italicum, which has growing global demand in the pharmaceutical and cosmetics industries. The company “Lj-Bilje” has been producing teas and essential oils for over 10 years and owns 7 hectares of medicinal herb plantations. In 2015, a new investor, “Perfect Export Bilje,” entered Ljubinje with a nearly 1 million BAM investment focused on seedling cultivation, plantation development, collection, and processing of medicinal and aromatic herbs. The factory employs 25 workers, has a production capacity of up to 40 liters of essential oil per day (depending on the plant species), and plans to expand its processing facilities.
In 2016, another investor, Immortelle Group, invested over 700,000 BAM and opened a distillery with a daily processing capacity of 15 tons of fresh plant material.
Currently, medicinal herb plantations cover around 51.75 hectares:
All limited liability companies, one joint-stock company, and cooperatives are included.
Municipality of Ljubinje
Svetosavska 2
88380 Ljubinje
JIB: 4401392570003
JRT: 5674338200000109 – Sberbank