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Bosnian Tobacco GrowerTraditional tobacco cultivation in Herzegovina is on the path towards extinction. Local farmers blame their problems on tobacco smuggling and corruption, but changing tastes are playing a large role as well. Tobacco went belly up a good while ago,' says Palac. According to the World Health Organization, more than 35 percent of all cigarettes smoked in Bosnia and Herzegovina BiH are smuggled or illegally made. The problem for farmers is that smuggled cigarettes rarely, if ever, use local tobacco. And smuggled cigarettes are cheap, undercutting the market for local manufacturers that farmers rely on to sell their product. Local manufacturers in turn squeeze farmers to keep prices low. Blago Markota enjoys the smell of Herzegovina Ravnjak, a unique type of tobacco in the world that is dying out together with the farmers who grow it. Foto: Dejan Miholjcic Smuggling is a huge problem, but it is not the only one tobacco growers face. Croatian cigarette manufacturers pay no excise fees when they sell in BiH, making their cigarettes cheaper than those of locally produced tobacco. It charges importers of Bosnian cigarettes 2. Meanwhile, local brands are moving away from the traditional tobacco, which has a harsher taste and is high in tar and nicotine. Local brands are being reformulated with imported tobacco to match their smoother international competitors. Instead, where tobacco once grew, farmers cultivate plants such as new potatoes and grapes — agricultural products that are more easily marketed here. The co-op, after buying tobacco for 45 years, has decided to quit the business. They are now buying grapes for making medicinal wine and grappa. They are still stuck with tons of tobacco picked in and in Herzegovina piled in neat stacks of yellow leaves. Blago Markota looks at leaves of Herzegovina Ravnjak tobacco, which is bought exclusively by the Sarajevo Tobacco Factory. Markota's firm, Agroplod, is stuck with tons of the strong tobacco in its Citluk warehouse because local brands are slowly losing out to smuggled and foreign tobacco. Foto: Dejan Miholjcic The weather conditions in Herzegovina favor the Ravnjak tobacco, but not the more popular American varieties including Virginia and Burley. Local cigarette brands such as Drina are the only ones that still use Ravnjak. Ravnjak is dying out, says an official at FDS. He would not say how the company was using Ravnjak because actual cigarette recipes are a trade secret. Drina still has a respectable market share of about 30 percent of the market, but FDS has failed to develop an export market for the brand. The corruption hurt their ability to stay in business. The plant is shutdown now and officials hope to privatize it, although it has not attracted much interest. The Banja Luka factory has produced few cigarettes. That leaves farmers reliant on one company, FDS, and only a few co-ops continue to buy for their reduced needs. FDS is not capable of purchasing an entire harvest and has decreased the quotas it buys from local producers in Herzegovina, buyers say. Farmers who have been able to sell their harvest can earn 10, from the sale of dry leaves a year, but a third of this sum goes towards growing costs. Iva Zadro and her husband Ljudevit make their living selling cut Herzegovina tobacco. In the north of the country in Posavina, the climate permits tobacco growers to grow the more popular American types of tobacco such as Virginia and Burley. The association warned the FBiH government in a letter sent in November of last year that there was a danger Herzegovina tobacco production would completely die out. BiH imported around 6. Annual consumption of cigarettes in BiH is at most 9. That leaves 2, tons unaccounted for every year. Those cigarettes are smuggled, Babic said. Babic said the tax laws allow Croatian cigarettes to be imported into BiH in huge numbers, some 85 million KM in , and sold for much cheaper than they are sold in Croatia. Croatia accounts for two thirds of the value of all cigarettes imported to BiH. Some of those imported Croatian cigarettes are then smuggled back into Croatia and sold for a profit. An examination of police records shows that Rovinj-made Ronhill cigarettes are often confiscated from smugglers either at the Montenegrin border with Bosnia or at the Bosnian Croatian border. Meanwhile, the laws in Croatia have made BiH exports almost non-existent — a miniscule few hundred kilograms of cigarettes last year. Croatia has high excise taxes, but lowers them for companies who use Croatian-grown tobacco, thus protecting their domestic farmers. If a Bosnian tobacco manufacturer wanted to export its products to Croatia, it would have to meet very strict quality regulations and standards, and would have to pay around 2. Croatian manufacturers pay little for exporting to BiH and have no requirements to meet for locally produced tobacco. The people who lose out are the farmers. Once there were 40 families who made a living selling tobacco in Bijelo Polje near Mostar. Today there are only five families who grow tobacco. Their son Ivica, who works as a police officer in Grude, is the only sibling who stayed. Their other children now live in Chicago, Toronto and Zagreb. Zadro, who has been stringing up yellow leaves since he was six years old, says tobacco used to be profitable before the war. In the s, men and women from the area would leave their jobs in Germany to come back home to grow tobacco. Before the war, Zadro used to grow 50, stacks of tobacco. This year he will grow a fifth of that. The former co-op station in Grude, now the company Duhanpromet, bought train cars of tobacco in Now it barely buys five, Zadro said. Up in A Puff of Smoke Investigation. Related Articles. Senior Airbus executives corresponded with an intermediary for controversial helicopter deals in Kuwait after the European company came under scrutiny for its dealings with middlemen, emails obtained by reporters show. When an apparent fraudster impersonated a famous football agent and asked FC Barcelona for 1 million euros, sources say the club attempted to send the money. Though the payment was eventually blocked, experts worry the incident is a sign that football remains vulnerable to corruption despite repeated calls for stronger oversight. Nearly , internal documents leaked from Steward Health Care to OCCRP show how a private equity firm, real estate investors and top executives drained billions from the hospital operator as it lurched towards bankruptcy and failed hospital patients. February 8th, Cigarettes and Tobacco Smuggling. Join the fight. Hold power to account. Your cookie preferences. 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Rovinj buying MDMA pills