Transcript Croatia - Agroberichten buitenland

CROATIA
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
COUNTRY PROFILE
 Central European and
Mediterranean country
 Total area: 56,596 km²
 Forest area: 43,5%
 Coastline: 5,835km
 Number of islands : 1.185 (66 of
them inhabited)
 Number of inhabitants: 4,4 mil
 Capital: Zagreb 0,8 mill inh
 Population density: 75,7 inh/km²
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
% of-in the EU
Area
AGRICULTURE
FACTS
56,596 km²
Population total
Living in predominantly rural
regions
4.26 mil
56.3%
(0.8% of EU-28)
(22.6% in EU28)
43.0 bill EUR
(0.3% of EU-28)
GDP per capita, 2014
10 170 EUR
58 (EU-28=100)
GDP per capita at purchasing
power 2014
15 966 PPS
GDP 2014
GDP from agriculture
% of Gross value added (GVA)
2014, agriculture, hunting,
forestry
GDP STRUCTURE (2014)
Industry
Agriculture
Services
3
436.5 mill USD (3rdQ
2015)
5.7%
(1.7% in EU-27)
26.6%
4.5 %, 4,4 % of total
employment
68.9%
Ministry of Economic Affairs, Office for Agriculture, Zagreb
AGRICULTURE
FACTS
Exports (goods and services)
2014
19.6 bill EUR
Imports (goods and services)
2014
Exports of agricultural
products 2014
18.9 bill EUR
1.1 bill EUR (13% of
total commodity)
Imports of agricultural
products 2014
2.1 bill EUR (14% of
total commodity)
Agricultural goods output, of
which
Crop output
Animal output
2.03 bill EUR
61%
39%
(0.5% of EU-28)
(0.6% of EU-28)
(0.5% of EU-28)
Agricultural input, Total
intermediate consumption
1.41 bill EUR
(0.6% of EU-28)
Real Income in Agricultural
2015
Real income in agriculture
per annual work unit in 2015
4
900.7 mill EUR
(increase of 23.3 %
from 2014)
4755 EUR
Ministry of Economic Affairs, Office for Agriculture, Zagreb
EXTERNAL RELATIONS
 On July 1, 2013, Croatia has became the 28th European Union
(EU) Member State.
Free access to markets of all EU member states as well as to
markets of countries with which the EU has signed trade
agreements.
 Signatory of 39 Free Trade Agreements
 Member of the World Trade Organization and NATO member, which
provides a security framework for its economic and social
prospects.
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
WHY CROATIA?
Gateway to the Central and Eastern Europe
Western orientation, member of the EU, NATO,WTO
UPOV membership
Location – strategic, growth zone
Climatic range – product diversity potential
Intensified investments in agriculture and rural development – EU
funds available
• Legislation-trade harmonized with the EU/Free trade agreements
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Modern highway infrastructure, river and sea ports
Investment promotion climate
Professional and skilled workforce
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
CROATIAN KEY RESOURCES
Transport infrastructure
airports, highways, motorways, ports
Energy infrastructure
Fresh water
Untarnished soil
Clean and unpolluted sea
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
TRANSPORT INFRASTRUCTURE
The most modern transport infrastructure in the region
Three Pan-European corridors Roads and motorways: 30,000km
(1,600 km modern highways)
Ports and terminals: – Rijeka,
Omisalj, Sibenik, Split, Ploce,
Vukovar (on Danube)
Airports: 8 international + 2 for
general aviation
Railways: 2,726 km – modernization
needed
Waterways 785 km
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
FOREIGN TRADE EXCHANGE
Total Trade Exchange Croatia
YEAR
EXPORT
IMPORT
BALANCE
COVERAGE
mil USD
mil USD
mil USD
IMP-EXP (%)
2012
12.368
20.834
-8.465
59
2013
12.742
21.932
-9.190
58
2014
13.814
22.861
-9.048
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I - VI 2014
6.726
11.666
-4.940
58
I - VI 2015
6.173
10.127
-3.955
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Total Trade Exchange Agriculture and Food Products Croatia
YEAR
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EXPORT
IMPORT
BALANCE
COVERAGE
mil USD
mi. USD
mi. USD
IMP-EXP (%)
2012
1.593
2.541
-949
63
2013
1.567
2.790
-1.223
56
2014
1.735
3.056
-1.321
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I - VI 2014
808
1.493
-685
54
I - VI 2015
795
1.315
-520
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
EXPORT MARKETS AGRI-FOOD (2014-15)
The most significant Croatian
export products 2014-2015:
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



Other
BaH
countries
20%
45%
fresh Bluefin tuna fish
corn, wheat
water and beverages
chocolate
sugar
Serbia
Slovenia
10 %
14%
11%
Other
countries
13%
Since accession agri-food export to
the EU grew for 20%!
CEFTA
(↑20%)
EU
53%
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Italy
Ministry of Economic Affairs, Office for Agriculture, Zagreb
34 %
IMPORT MARKETS AGRI-FOOD (2014-15)
The most significant Croatian
import products 2014-2015:
Other
American
Other
10 %
develop.
11 %
 fresh or chilled meat (pork,
beef, veal)
 fruits and vegetables
 diary products
 pastries
 fodder
 alive animals
EU
(15%↑)
83 %
CEFTA
8%
GERMANY
16 %
ITALY
12 %
NEDERLAND
Since accession agri-food import
from he EU grew for 15%!
9%
Other
conutries
46 %
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HUNGARY
AUSTRIA
10 %
7%
Ministry of Economic Affairs, Office for Agriculture, Zagreb
FOREIGN TRADE EXCHANGE CROATIA-NL
Total Trade Exchange Croatia- Nederland
EXPORT
IMPORT
BALANCE
COVERAGE
mill USD
mill USD
mill USD
IMP-EXP (%)
2012
207
716
-509
29
2013
169
671
-502
25
2014
218
787
-569
28
75
332
-257
23
145
365
-220
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I - VI 2014
I - VI 2015
Total Trade Exchange Agriculture and Food, Croatia Nederland
IMPORT
BALANCE
COVERAGE
mill USD
mill USD
mill USD
IMP-EXP (%)
2012
6
225
-218
3
2013
7
233
-227
3
2014
7
263
-256
3
2
138
-136
2
3
111
-107
3
I - VI 2014
I - VI 2015
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EXPORT
NL- steadily the 3rd-4th EU
largest exporter of agri-food
products to Croatia
(after Italy, Germany and Hungary)
NL exports to Croatia: fresh or
chilled beef and pork, live pigs,
meat, cheese, soft drinks, potatoes
(fresh, frozen), other vegetables
fresh or frozen, cut flowers …
NL imports from Croatia: corn,
malted extract, ingredients for
animal feed, tobacco, water and
alcoholic beverages.
Ministry of Economic Affairs, Office for Agriculture, Zagreb
AGRICULTURE PRODUCTION BY REGIONS
Fundamental advantages CRO agriculture3 different geographical and climatic zones!
Central North:
Coastal zone:
North-South:
Continental climate
Mediterranean climate
Mountain zone
Various types of climate, relief and soil are
favourable for the production of wide range
of agricultural products:
livestock & poultry,
continental and Mediterranean fruits and
vegetables
industrial crops, vineyards,
fisheries & aquaculture
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
AGRICULTURE PRODUCTION BY REGIONS
Pannonian valley
Mountains
Mediterranean
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
CROATIAN AGRICULTURE IN EU
Agriculture and RD budget available 2014-2020, annually :
373 mill EUR for direct payments
352 mill EUR for Rural Development , RD (modernization of
holdings,processing, marketing)
Agriculture land purchase
 EU citizens will be able to buy land in Croatia 7+3 years upon
Croatia’s accession to the EU in 2013 (currently only foreign
entities that are registered in Croatia can purchase, rent or
take the agriculture land in concession)
 State owned agriculture land is not on sale
 Aprox. prices: rental private land : 40-270 EUR/ha;
rental State owned land 27-100 EUR/ha
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
STRUCTURE OF HOLDINGS IN CROATIA
Number of holdings (as
registered in the Farm registry)
Utilized agriculture land
1,3 mill ha
Average farm size, ha
7,5 ha
Farms < then 5 ha
56 %
Farms 5-20 ha
39 %
Farms > then 20 ha
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120.000
5%
Ministry of Economic Affairs, Office for Agriculture, Zagreb
HOLDINGS BY TYPE
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
AGRICULTURE LAND USE
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
SWOT ANALYSIS CROATIAN AGRICULTURE
Strengths
• Favorable production conditions (3
climate zones, soil, water)
• Development of diverse systems for
agri production
• Developed production technologies
• Modern small scale food industries
• Link to developed tourist market –
agri tourism
• Large holdings with expansion to
neighboring markets
• Growth process in the sector
responding to retail development
• Skillful labor force at lower labor
costs
• Tradition in agro production
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Weaknesses
• Relatively weak primary agri
production
• Lower competitiveness of small scale
producers
• Reform of professional agri education
to be upgraded
• Insufficient organization of production
• Negative trade balance in the sector
• Underdeveloped value chains and
unsufficient agro logistics
• Production costs relatively high (VAT
25%)
• Dependence on raw material imports
Ministry of Economic Affairs, Office for Agriculture, Zagreb
SWOT ANALYSIS CROATIAN AGRICULTURE
Opportunities
• Availability of ample EU funds
(agriculture, infrastructure)
• Excellent geographic position – very
good traffic networks
• Farmers invest more - modernization
of farms and technologies
• High quality of certain products –
niche markets, growth in export
• Availability and funding of renewable
energy (geothermal)
• Awareness to improve producers
cooperation - POs
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Threats
 Increased competition since the EU
accession
 Not fully utilized EU funding
possibilities (‘’missed opportunity’’)
 Price conscious producers (
purchasing power higher then in
CEFTA countries, but lower then in
EU)
 Slow process in national structural
reforms
 Administration bottlenecks
Ministry of Economic Affairs, Office for Agriculture, Zagreb
HORTICULTURE
SECTOR
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
FRUIT SECTOR
 76,000 ha of orchards (2.2 % of total agricultural land)
 Main products apples 51%, plums 15.8% and mandarins 16.3%.
 Orchards mostly owned by small businesses and farmers/Large
enterprises modern landscaped fruit plantations
 Total fruit production in decline, currently around 250,000 tons
(5% of the total agricultural production)
 90% of the total production intensive
 Except for mandarins, cherries and sour cherries, home fruit
production does not satisfy even 50% of domestic need
 Import more then 50% of home consumption!
 Import mainly from Italy 19.5%, Spain 9.3% Ecuador 8.1%,
Belgium 6.2% Germany 6.1% and the Netherlands 4.5%
 Great potential and increasing popularity in medical herbs (3000
ha), exotic fruits and soft fruits.
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
FRUIT SECTOR
Characteristics
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Majority of fruit consumed fresh
Known for grapes and wines
Highly dependent on import
Limited area irrigated
High risk – little use of protective nets
and insurances
High VAT rate (25%)
Fruit mainly purchased on green city
markets and in supermarkets
Many small family-owned businesses
Little knowledge exchange between
producers
Producers horizontally well organized,
in practice lack of quality (commercial)
cooperation, lack of producers
organizations; Only 1 recognised PO
Developments
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Processing industry will grow
Increasing power large supermarket
chains
Demanding consumers – chain
management
Urge for land consolidation
Modernisation and expansion of fruit
processing industry
Rejuvenation of orchards
Plant material production
Great potential in organically
produced fruit
Increased popularity soft fruit
Great potential niche markets such
exotic fruits
Raising awareness for cooperation
Ministry of Economic Affairs, Office for Agriculture, Zagreb
VEGETABLE SECTOR
 70.000 ha under the vegetable (4.8 % of the agricultural area)
 80 ha of covered production, 80 ha of greenhouses and approximately
300 ha covered with plastic film greenhouses
 The main crops potatoes and pulse, tomato, paprika, cucumbers, onions
 Production mainly by private farmers (less than 5 % from big agro
combinates)
 Annual production around 370.000 t ,out of which 150.000-200.000 t is
potato
 Vanishing local vegetable seed production, mainly imported, major
import from Nederlands, Italy, France, Spain
 Vanishing local seed potato production, production only on 53 ha, 90%
potato seed imported from Nederland and Germany
 Croatia is net importer of vegetables, both fresh and processed ( mainly
potato, tomato and onions)
 Most of total vegetable import comes from Nederland, Spain and Italy
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
VEGETABLE SECTOR
Characteristics
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Import dependent
Relatively new sector
Focus on seed, lesser on production
and post-harvest
Good Off-farm quality
Large area irrigated
Good prospects for utilization of
geothermal energy (continental
Croatia)
Few (modern) processing factories
High VAT rate on inputs and products
(25%)
Producers horizontally well organized,
in practice lack of quality (commercial)
cooperation, lack of producers
organizations;
Only 1 recognised PO
Developments
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Increasing power large supermarket
chains
Lower importance of traditional green
wholesale markets, yet they did not
vanish
Increased purchasing power
consumers- ‘’better value for money’’
Demanding consumers ask for
diversity
Need for quality; EurepGAP
certification
Great potential niche marketsmedical herbs, exotic veggies and
organic produce!
Raising awareness of the growers for
clustering production and
organizations of POs
Ministry of Economic Affairs, Office for Agriculture, Zagreb
F&V SECTOR OPPORTUNITIES FOR THE DUTCH
Opportunities for the Dutch
• Partnerships with Western (Dutch?) companies for
diversification, quality improvement and growth
• EU funding possibilities for new investments
• Processing technology
• Greenhouse technology-geothermal energy
• Sorting and packaging machines
• Modern F&V processing facilities, including drying facilities
• Improvement of agro logistic chains -Logistic centres
• Aged orchards – the Dutch plant material needed
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
F&V SECTOR OPPORTUNITIES FOR THE DUTCH
Opportunities for the Dutch
• Cultivation and post-harvest (practical) knowledge and
support
• Limited area equipped with efficient irrigation systems
• Identity; Branding and Packaging
• Standardisation and certification development
• Credit and investment need asks for cooperation and
partnerships!
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
SOFT FRUITS
 Tradition in production, advantage different climate zones
 Development in production in the last 15 years
 Production insufficient for local demand: Import mainly
from Serbia (fruits fresh or frozen); some big producers
export to Germany and Sweden ( blackberry juices)
 The most important soft fruits species raspberries,
strawberries and red berries
 Increasing interest in cranberries, currants, aronia,
blackberries and blueberries
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
SOFT FRUITS
Curret production
strawberries
250 ha
Clery, Jolly, Albion, Elsanta
raspberries
200 ha
Willamette, Meeker and Sugana
blackberries
150 ha
Thornfree, Black Satin, Hull Thornless
currant
40 ha
Jonkher van Tets, Čačanska crna, Rovada
blueberries
20 ha
Blue Crop, Blue ray, Spartan, Yersey, Duke
rosehip
12 ha
New species
chokeberries
114 ha
Goji berries
1,5 ha
honesuckle
0,8 ha
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Nero, Viking, Galicia
Wojtek, Zojka
Ministry of Economic Affairs, Office for Agriculture, Zagreb
SOFT FRUITS SWOT ANALYSIS
Strengths
Weaknesses
• Excellent soil and climate conditions for
berry production
• Geographical and biological diversity
with wild berries
• Few brands already well established in
the sector
• Increased interest for these products,
fresh and processed – has become
significant niche market
• Growing associations of producers
evolving in new assortment and
production technologies
• Growing sector based on demand from
consumers and processing industry
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Small and fragmented family farms;
old farmers with low level of
education and know-how
Insufficient management and
marketing knowledge and project
management knowledge
Lack of land market
Underdeveloped seedlings production
Insufficient market infrastructure
including postharvest management
(cooling and storing places)
Underdeveloped agri-food chain
without PO’s and cooperatives
Risk management programs are
missing or inadequate for soft (fruit)
sector
Ministry of Economic Affairs, Office for Agriculture, Zagreb
SOFT FRUITS SWOT ANALYSIS
Opportunities
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Growing sector based on demand, carried
by more professional and dedicated
producers, rather then traditional from
the past
an easy access to the EU market
access to EU funds for agriculture (Rural
Development)
Export potential for products as final
consumer goods
Chances to grow – based on contract
farming with big international retailers,
and then to expand further to
neighboring markets with these retailers
Increased demand from processing
industry
Increased demand for organic
Establishing cooperatives and efficient
value chain management
Threats
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Competitions from EU and globally
Cost competitiveness (Poland, Spain,
etc.)
Value added competitiveness
(innovative and value added products)
Climate change and lack of irrigation
systems
High prices of inputs
Ministry of Economic Affairs, Office for Agriculture, Zagreb
SOFT FRUIT - OPPORTUNITIES FOR THE DUTCH
Opportunities for the Dutch
• Partnerships with Western (Dutch?) companies for diversification,
quality improvement and growth
• EU funding possibilities for new investments
• Plant propagation, plant material:
• New varieties of soft fruit
• Intensified ecological production
• Fertigation; greenhouse technology
• Soilless production to support Croatian farmers not having to replace
20-30 years of production only to soil and bags
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
SOFT FRUIT - OPPORTUNITIES FOR THE DUTCH
Opportunities for the Dutch
• Crop protection: pollinators and predators of pests
• New kinds of fertilizers (for eco production) to expand assortment.
Current supply is limited
• Joint investment in processing capacity: Juices, jams, pulp for
bakery industry (60 million EUR food pulp is imported currently to
Croatia).
• Business match-making in the soft fruit sector between Dutch and
Croatian companies, e.g. production and sale of juice and wine
made of soft fruits in Croatia
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
LIVESTOCK
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
LIVESTOCK GENERAL
 During last 20 years, and especially in light of the EU
accession, significant changes in primary animal
production, processing and animal product markets:
Specialization and intensification of production,
improving of active technologies, enlargement of
production units through new quality standards and
traceability
 Liberalization of the food product market increased demand
for (competitiveness and distinctiveness of) national animal
production
 Consumers’ attitudes have changed significantly - hygienic
safety, traceability and origin of the product have become
increasingly important criteria
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
LIVESTOCK GENERAL
 Yet, animal husbandry in Croatia still marked by a relatively small
production capacity of family farms, which are prevalent
 Home production both in terms of animal and meat production do
not meet market demand, except in poultry sector
 Needs in further modernization of farms, production technologies,
energy efficiency and environmental protection
years
CROATIA: No. of animals
2011
Cattle
Pigs
Sheep
Goats
Poultry
Bee Hives
‘000 heads
‘000 heads
‘000 heads
‘000 heads
‘000 heads
‘000 pieces
2012
2013
2014
2015 (Aug)
446
452
442
441
462.2
1,233
1,182
1,110
1,156
1,16
639
679
620
605
625,25
70
72
69
61
74,5
9,523
10,161
9,307
10,317
328
361
386
397
Source: Croatian Bureau for Statistics, Sept 2015
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
PIG SECTOR
37
Ministry of Economic Affairs, Office for Agriculture, Zagreb
PIG SECTOR GENERAL
 Traditionally very important sector: 35,9% of total livestock
production and 14,2% of total agro production
 Consumption pork meat – 24 kg per capita (in increase)
 Yet home production in decline - 50% of total domestic meat
production (satisfying only 30-40% of domestic needs)
 Lack in domestic production compensated with high import
 In 2014 imports of slaughtering pigs, meat and meat products
reached $236 million (79,447 MT), mainly from Nederland, Germany,
Spain, Hungary, Italy, Austria, Brazil
 Export to CEFTA countries - Russian export ban caused domestic
retailers to import large quantities of cheaper EU pork – exit for local
producers in export to Serbia and BaH
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
PRODUCTION STRUCTURE
 2006-2013 – significant reduction in pigs population; import increase
30-40%!
 Currently 34.88% pigs for breeding, 45.54% of gilts and 22.33% of
slaughtering pigs
 1,16 mill pigs for slaughtering (domestic need at least 2,5 mill)
 Out of 100,000 sows 23 758 are registered breeding saws under control
Production Structure HR, pig sector
hybrid programme PIC
54,37%
Topigs
26,19%
different crossbreeds
12,50%
pure breeds
autochthonous breeds
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16%
5%
Large White, Swedish Landrace, German
Landrace, Duroc and Pietrain
Black Slavonian pig, Turopolje pig
Ministry of Economic Affairs, Office for Agriculture, Zagreb
PRODUCTION STRUCTURE
 23 758 registered breeding sows with production control distributed
between 21.496 large systems (90%) and 2.262 family farms
 Big production systems using hybrid programs in growth,
production of the family farms is in stagnation
 Three large vertically-integrated producers account for 60% of pork
production in Croatia, with the 40% balance produced by small-scale
producers that typically lack the economies of scale enjoyed by their
European peers
 E.g. typical pig farm in Croatia boasts just 10 breeding sows, while
the typical pig farm elsewhere in the EU has over 100
 Need to preserve added value of small and mid holding farms in
change breed composition and manufacture of higher added value
products, such Slavonian sausage and 4 types of Dalmatian and
Istrian prosciuttos (already having EU PGI protection)
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
Strength
Weaknesses
Long tradition in pig farming
Traditional production and
consumption of meat and meat
products Consumption is higher than
production
Significant grain production for
production of fodder concentrate
Croatian consumers traditionally
oriented to domestic products
Modern processing facilities with
quality products recognized locally and
internationally
 Unfavorable farm structure
(economy of value) and
insufficient specialization
 Numerous not specialized farms
 Small(er) holdings- lower
compliance with environmental
and hygiene standards
 Insufficient level of manure
management and manure storage
capacity
 Inappropriate genotype
 Weaker technology productivity
(because of farm structure and
breeding methods)
 Insufficient level of cooperation
between producers and meat
industry
41
Ministry of Economic Affairs, Office for Agriculture, Zagreb
Opportunities
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opened EU market
ample EU RD funding possibilities for
the modernization of farms,
production technologies, transfer of
knowledge and know how
Increase of pork meat consumption
Possibilities of processing of pig meat
prepared as recognizable traditional
products, which can gain higher price
on domestic and international marketimproved branding and certification!
Improvements in cooperation
between producers, processors and
tradesman-value chain
Increase the utilization of
technological potential for the
production of value added products
Threats
 Excessive import from the EU and other
markets
 High costs of inputs
 Continuous oscillations of market prices
and uncertain conditions
 Quality supply at lower prices from
foreign markets.
Ministry of Economic Affairs, Office for Agriculture, Zagreb
PIG SECTOR – OPPORTUNITIES FOR THE
DUTCH
 Opened the EU market
 Possibilities in usage of the EU RD funds aiming to modernization
of farms through which Croatia represents an interesting target
market for the development of new business
 RD measures investments in new production capacity (minimum
of 200 million euros a year, with a 50-75 % EU funding)
anticipate short and long term measures for
restructuring, optimization of farms in genotypes,
production technologies and equipment, land resources,
improved branding and certification, training and raising
the level of skills and knowledge of the farmers (training
centers)
43
Ministry of Economic Affairs, Office for Agriculture, Zagreb
CATTLE
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Ministry of Economic Affairs, Office for Agriculture, Zagreb
CATTLE PRODUCTION
 Croatia not self-sufficient in beef (self-sufficiency 82%)
 Beef mostly imported from the EU
 Imports of animals intended for fattening because the tendency of
decrease in breeding herds or cows
 The share of beef in total meat consumption 15%
 Domestic production of beef fluctuates between 40.000-50.000
tons, not enough for the needs for high quality raw material of the
processing industry
 Increase in domestic baby beef production; export to Italy, BaH;
prospecting export growth to the EU, Turkey, Israel and Middle East
 Opportunities in cattle rearing and in particular beef production lies
in the currently abandoned natural pastures (primarily intended for
the higher purchasing powered EU market) and free-range and
organic farming
45
Ministry of Economic Affairs, Office for Agriculture, Zagreb
CATTLE PRODUCTION
Production and supply balance sheet of beef in Croatia 2008-2016
2008
349,34
167,17
2010
298,27
209,71
2012
220,41
213,56
2016
261,19
210,93
Net weight of slaughtered animals (1000 t)
58,40
62,55
47,07
55,09
Balance sheet (1000 t)
Domestic meat production
47,21
50,61
43,95
58,67
Import of alive animals for slaughter
16,02
15,11
12,94
11,43
15,78
15,11
12,93
9,44
4,83
3,17
9,82
15,01
0,00
58,40
10,47
4,49
68,87
3,81
2,07
0,56
0,60
0,04
65,02
65,02
14,66
72,61
0,01
62,55
9,59
7,00
72,14
7,55
1,89
0,36
0,40
0,04
64,55
64,55
14,61
78,40
0,00
47,07
10,21
8,65
57,28
3,36
1,86
0,22
0,24
0,02
53,90
53,90
12,58
81,54
0,00
55,09
12,31
9,57
67,40
7,56
3,04
0,24
0,36
0,12
59,72
59,72
13,14
82,00
Slaughtering (000 Head)
Average carcass weight, kg
-from EU
Export alive animals for slaughter
-to EU
Net meat production
Net import
-from EU
Available resources
Meat export
-to EU
Initial stocks
Final stocks
Stock change
Domestic consumption
Human consumption
Sonsumption per capita
Self sufficiency (%)
Source: Ministry of Agriculture Feb 2016
46
Ministry of Economic Affairs, Office for Agriculture, Zagreb
Strength
 Improved utilization of capacities on
family holdings for fattening of beef
 Significant grain production for
production of fodder concentrate
 Croatia already exports baby beef,
which achieves a high prices on foreign
markets
 Croatian consumers are traditionally
oriented to domestic products
 Huge, unutilized area for cows
(meadows and pastures)
47
Weaknesses
 Unfavorable farm structure (economy of
value) and insufficient specialization
 Insufficient level of compliance with
environmental and hygiene standards
 Insufficient level of manure
management and manure storage
capacity
 Short production cycle in intensive
fattening resulting in too early
slaughtering of
 animals at lower weight
 Low technology productivity (because of
farm structure and breeding methods)
 Undeveloped agricultural land market
 Insufficient number of calves for
fattening
Ministry of Economic Affairs, Office for Agriculture, Zagreb
Opportunities
 Available EU funding
 Potential for the increase of
competitiveness and quality
improvement
 Use of unutilized grass resources
Threats
 Excessive import from the EU and other
markets
 Quality supply at lower prices from
foreign markets.
 Slow land consolidation process
 (great) potential for further
differentiation of products to offer a
wider assortment to consumers
 Niche market –organic meat, free range
breeding in abandoned mountain
regions
48
Ministry of Economic Affairs, Office for Agriculture, Zagreb
DAIRY SECTOR
 Due to abundant Gov’t support in the last decade, faster growing sector,
expanded domestic production and diaries expanding to neighboring markets
 Prices of dairy products at the EU level
 Consumption of milk per capita 185 kg (milk equivalent), cheese 7 kg
 In the last 10 years milk consumption somewhat decreases, cheese
consumption increases
 Annual milk production around 550-650 mill kg per year, 90 % cow’s milk
 Annual import 130.000-150.000 t, mostly from Germany, Hungary, Poland and
BaH; cheese increasingly imported from the EU
 Croatia mostly imports fresh and condensed milk, less other dairy products
 Import of raw materials for dairy industry decreases, import of cheese and
butter increases
 No quantity limitations for the import and export of dairy products, no system
of issuing trade licenses
 Tariffs for milk and dairy products defined with WTO agreements
49
Ministry of Economic Affairs, Office for Agriculture, Zagreb
MILK PRODUCTION
 23.000 farms in diary sector (25% of total), predominantly small size,
mostly also with production of beef and veal
 43 % of farms 4-10 cows, only 3.3% more then 16 cows
 Majority of farms still in closed system, in lack of agriculture land,
though in the last decade well modernized, sometimes inadequate
technology and farm equipment with low level of specialized education
 Breeds still not optimal: 65% Simmental with annual production
5.030 kg, 25% Holstein Friesian cattle with 7.160 kg a year)
 Last trends show upraise in Holstein Friesian cattle
 96% of produced milk of the EU quality
 Producers well organized in local and regional associations, while
Western type of cooperatives are still missing
50
Ministry of Economic Affairs, Office for Agriculture, Zagreb
MILK INDUSTRY
 37 registered diary industries, the 5 largest (Dukat/Lactalis, Meggle,
Vindija, Belje, Zdenka) process more than 90% of total quantities of
processed milk
 Most of the other dairies craft-type processing up to 10.000 lit
milk/day
 Cheese -the largest of the four main dairy categories, overall share of
36%
 Unprocessed cheese remained the dominant product type with an
overall value share of 95%. Dominance due to the enduring popularity
of hard cheese products, accounting for 80% of unprocessed cheese
current value
 Increasing demand for fromage frais and quark
 Growth in yoghurt and sour milk products
51
Ministry of Economic Affairs, Office for Agriculture, Zagreb
Strength
Weaknesses
 Existence of well-educated and
experienced middle sized dairy farmers
 Huge, unutilized area for cows (meadows
and pastures)
 Significant grain production for production
of fodder concentrate
 Existence of expert support for dairy
farmers
 Consumer preference for domestic dairy
products
 Insufficient level of compliance with
environment. and hygiene standards
 Insufficient level of manure management
and manure storage capacity
 Insufficient compliance with animal welfare
and rearing methods
 Producers non - competitiveness on small
production units
 Unfavourable farm structure and
insufficient specialization
 Insufficient use of grassing and low quality
of voluminous, winter fodder (hay and
silage)
 Low competitiveness on the open market
 Insufficient level of education of small sized
 Farmers in the field of production and
management
52
Ministry of Economic Affairs, Office for Agriculture, Zagreb
Opportunities
Threats
 EU RD funding possibilities for
 Uncertainty about the milk price on the
modernization of farms and processing
world market
facilities (stress on small and mid size
 Slow land consolidation process
milk processing units)
 Due to higher yields per cow and
 Establishing new production units,
restructuring the sector, there are less
adaptation which will increase the
cows
competitiveness of the sector
 Existence of internationally competitive
processors with EU expert licences
 Regionally recognised dairy products
(cheese)
 Possible increased income due to
decrease in
production costs
 Professional training for dairy producers
is available
 Readily available labour force at
affordable costs
53
Ministry of Economic Affairs, Office for Agriculture, Zagreb
CATTLE SECTOR– OPPORTUNITIES FOR THE DUTCH
 Sector investments through the EU Rural development funding
 Supplying quality breed /semen (Holstein)
 Construction of new farms/adaptation and reconstruction of
existing farms ( meeting ecological conditions of production,
sanitary and animal welfare conditions). Trend is in ‘’lauf’’ barns
 Transfer of specialized knowledge to farmers (AI, farm
management, animal heath and welfare (practical trainings))
 Small scale milk processing industry still to upgrade to high
standards related to the quality and hygiene of milk processing –
to invest significant financial means into modernization of
production technology if want to survive -of interest to the Dutch
milk processing technology providers
54
Ministry of Economic Affairs, Office for Agriculture, Zagreb
SHEEP AND GOATS
55
Ministry of Economic Affairs, Office for Agriculture, Zagreb
SHEEP AND GOATS
 Though traditional, in the last 20 years major structural
changes, more and more developing sector adapting to the
market requirements
 Higher quality of production and income increase due to genetic
determination and standardization of existing genotypes of
sheep and goats and their registration as Croatian native
breeds, as well as introducing new genotypes based on the
desired production goal (meat and milk quality)
 Need in further development of sheep and goat sector and their
products - demands on local sheep and goat types of meat and
cheeses are steadily increasing (tourism industry)
56
Ministry of Economic Affairs, Office for Agriculture, Zagreb
SHEEP AND GOATS
Y 2015
Total population size, heads
No of farms
Average size of herd
sheep
goats
625 280
74 580
17000
4000
81% <50 animals
7% >100 animals
90% <50 adult animals
4% >100 animals
 Most of the sheep and goats bred for meat, primarily lamb and goat kids
 Annual production lamb meat 7.650 t, goats kid’s meat 960 t
 A small No. of sheep and goats is rearing for milk production (about 7% or
60,000 ewes and 20% or 14.000 goats)
 Milk processed into cheese in the small family cheese factories or in
industrial dairies
 Annual production of sheep milk 4 mil lit, goat milk in around 5 mil lit
 Wool production no economic significance, only a small portion processed
by domestic textile industry, partly exported, the most wasted
57
Ministry of Economic Affairs, Office for Agriculture, Zagreb
SHEEP AND GOATS

2 main production systems per production regions:
•
Continental - large sized breeds, imported
breeds for meet production
sheep- Merinolandschaf, East Friesian,
Travnicka, Solcavsko jezerska ,Suffolk Ile de
France, Romanov
goats – Alpen, Sanen, Boer
Intensive feeding systems, grasslands of good
quality, grains
•
Mediterranean - Indigenous breeds, smaller
sized breeds, extensive pasture systems
Milk production more important than in
continental Croatia
Increasing production of well known full-fat hard
cheeses from the Coastal islands- export
branded!
58
Ministry of Economic Affairs, Office for Agriculture, Zagreb
SHEEP AND GOATS– OPPORTUNITIES FOR THE
DUTCH
 Usage of funds that are available to farmers within the EU
Program of rural development
 Supply of the farm and milk processing technology, aiming
to modernization and building new farms of various range
sizes
 Transfer of know how, trainings and education for breeder
(production technologies, farm management, animal health,
animal welfare)
 Marketing, certification and branding
59
Ministry of Economic Affairs, Office for Agriculture, Zagreb
Croatia – Nederland …Ready, willing, able to join forces?
Partnerships, training, demonstration,
consultancy, certification..
Plant material, genetics,
Processing, logistic, infrastructure..
market…
60
Ministry of Economic Affairs, Office for Agriculture, Zagreb
For further info
Maarten Wegen, Agriculture Attaché
Dubravka Bacic, Assistant Agriculture Attaché
Embassy of the Kingdom of the Netherlands
Office for Agriculture
Medveščak 56| 10 000 ZAGREB
T +385 (0) 1 46 42 220
F +385 (0) 1 46 42 201
[email protected];
[email protected]
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61
Ministry of Economic Affairs, Office for Agriculture, Zagreb