Croatia - Agricultural Sector Croatia - Agricultural Sector
Overview
Croatia has 1.3 million hectares (ha) of agricultural land. In addition, Croatia has about 2.2 million ha of forests. Croatia is self-sufficient in the production of wheat, corn, poultry, eggs, and wine, while still having favorable conditions for the production of many other agricultural products. Nevertheless, imports of agricultural and food products continue to grow. Although agriculture only contributes approximately 4 percent to GDP, the importance of agricultural production is higher than its GDP share indicates. The vast majority of Croatia is rural territory (92 percent) and about half of Croatia’s population lives in rural areas.
Given the small average farm size and the fractured nature of the farms, restructuring policies in Croatia are particularly important. As many as 63.1 percent of all registered farms have fewer than three hectares, while the average commercial farm is 8.5 hectares. Currently Croatian agriculture struggles with land ownership, the size of farms (which are small due to family inheritance laws), and outdated land registry books.
In 2018, Croatia imported $3.9 billion in agriculture and related products. Imports of agricultural products from the United States were valued just over $22 million in 2018. However, unrecorded transshipments from Western European suppliers likely make the actual figures much higher. U.S. products with good prospects include seafood, animal feed ingredients, animal genetics, wine, pork, fruits and vegetables, pet food and a range of snack and convenience foods. The Croatian market for imported food products is dominated by European suppliers, and the market continues to grow, with high-value food items as the single largest segment.
Agriculture and Related
| 2016 | 2017 | 2018 | 2019 (Estimated) | |
|---|---|---|---|---|
| Total Local Production | n/a | n/a | n/a | n/a |
| Total Exports | 2,801,446 | 2,889,876 | 3,237,110 | 3,200,000 |
| Total Imports | 3,179,848 | 3,507,257 | 3,862,208 | 3,800,000 |
| Imports from the US | 20,119 | 19,123 | 22,078 | 20,000 |
| Total Market Size | n/a | n/a | n/a | n/a |
| Exchange Rates | 6.80 | 6.62 | 6.28 | 6.30 |
Miscellaneous Consumer Foods
| 2016 | 2017 | 2018 | 2019 (Estimated) | |
|---|---|---|---|---|
| Local Production | 800,000 | 800,000 | 800,000 | 800,000 |
| Exports | 898,063 | 975,875 | 1,121,733 | 1,000,000 |
| Imports | 1,903,959 | 2,136,504 | 2,360,562 | 2,300,000 |
| Imports from the US | 12,508 | 11,706 | 11,547 | 12,000 |
| Total Market Size | 1,805,896 | 1,960,629 | 2,038,829 | 2,100,000 |
Local production is unofficial estimate.
Fish and Seafood
| 2016 | 2017 | 2018 (Estimated) | 2019 (Estimated) | |
|---|---|---|---|---|
| Local Production | 185,000 | 185,000 | 185,000 | 185,000 |
| Exports | 195,911 | 209,460 | 239,261 | 200,000 |
| Imports | 136,120 | 156,918 | 179,606 | 165,000 |
| Imports from the US | 1,672 | 435 | 27 | 100 |
| Total Market Size | 125,209 | 132,458 | 125,345 | 150,000 |
Local production is unofficial estimate.
Soybeans and Soybean Meal
| 2016 | 2017 | 2018 | 2019 (Estimated) | |
|---|---|---|---|---|
| Local Production | 80,000 | 85,000 | 85,000 | 80,000 |
| Exports | 77,985 | 110,046 | 65,183 | 70,000 |
| Imports | 72,502 | 83,465 | 86,257 | 85,000 |
| Imports from the US | 0 | 0 | 0 | 0 |
| Total Market Size | 74,517 | 58,419 | 106,074 | 95,000 |
USD thousands (total market size = (total local production + imports) - exports)
Local production is unofficial estimate.
Leading Sub-Sectors
Croatia’s total imports in Consumer Food vary around just over $2 billion. In the last few years flourishing tourism along the Dalmatian coast and rebounding consumer demand in urban areas has fueled demand for consumer foods as evidenced by the growth in the number of supermarkets. However, the persistent global economic crisis has somewhat dampened growth. Trade statistics on American exports to Croatia in this category are severely understated due to trans-shipment via the EU. Imports of fresh fruits and vegetables together with juices and processed fruits and vegetables were approximately $370 million in 2018. However, US exports of these products to Croatia were valued at only $0.7 million due to lower prices from other suppliers and the fact that many U.S. imports are trans-shipped from hubs like Rotterdam and thus are not registered as a U.S. import. This sector has high prospects because Croatia is not self-sufficient in fruit production and will always import exotic fruits.
Furthermore, Croatia is a large pork importer. In 2018, pork imports reached $258 million, mostly from the EU (Germany and Spain). The U.S. is still only a minor supplier to the Croatian market as U.S. pork exports were constrained for many years by trichina testing requirements. However, with the adoption of EU standards in 2008, this is no longer a problem.
Croatia’s 2018 beef imports were valued at $111 million, comprised mainly of fresh/chilled or frozen product. During the last six years, beef imports have shown steady growth. Currently, the United States exports negligible amounts of beef to Croatia due to EU related hormone ban, although there is a potential to expand exports of non-hormone treated beef that could find Croatian consumers willing to pay for the premium.
In addition, Croatia does not have a domestic pet food manufacturing industry and imports all of its consumption. In 2018, imports of dog and cat food were valued at approximately $61 million. While direct exports from the United States account for only a small portion of the pet food market, U.S. exporters are advised to keep a keen eye on Croatia’s economic growth as an indicator of potential sales for U.S. pet food products. One good prospect for U.S. dog and cat food exporters is the niche market for premium pet foods.
Moreover, Croatia provides a unique opportunity for U.S. wine exporters to position their product in the market that in 2018 imported over $36 million in wine. U.S. wine exporters should focus their market entry efforts on Zagreb, the nation's capital, where niches exist for medium and higher quality wines.
Another interesting sector is tree nuts. Croatia imported tree nuts valued at $35 million, of which approximately $6 million came from the United States. As Croatia’s almond production satisfies about half of domestic demand, there remains good market potential for U.S. almonds.
Although Croatia is a net-exporter of fish and seafood products, it imports a significant quantity as well. Annually, Croatia imports well over $155 million in fish and seafood. In 2018, Croatia imported fish mostly from Spain and Italy. The demand for fresh-water fish and seafood is expected to increase with modern changes in nutritional habits and increased demand from tourism.
Croatian dairy, poultry and swine industries stimulate demand for soybeans and soybean meal. Price and credit availability are the major determinants for sourcing. At the moment, for human consumption, only GMO-free soybeans are acceptable for the Croatian market.
Opportunities
Demand for medium to high quality consumer foods will continue to rise along with Croatia’s standard of living.
Croatia is also an excellent market for U.S. fish and seafood exports. Croatia’s fishing industry cannot meet rising demand for seafood as the country becomes a more popular tourist destination. Croatia’s fish processing industry and fish breeding is also expanding and consequently demands more feed for tuna breeding. Promising areas for U.S. exporters include fish feed for tuna production, fish for the local fish processing industry, sardines, and mackerel. The small blue fish is the most consumed fish on the national market. However, due to changing nutritional habits, consumer demand has increased significantly for salted fish production, including anchovies, frozen fish, smoked fish (smoked sea bass, eel, and freshwater fish), fish pâté, marinated fish, and others.
Soybean meal is an import sector with higher financial potential. Opportunities lay in the feed segment and non-GMO soy.
Web Resources
Foreign Agricultural Service Zagreb
Foreign Agricultural Service
Ministry of Agriculture
Ministry of Health
Food and Healthy Living Fair_Zagreb Fair
U.S. Embassy – Foreign Agricultural Service
Andreja Misir, Agricultural Specialist
Zagreb, Croatia
Tel: +385 (0)1 661 2467
Email: AgZagreb@state.gov