MEAT SECTOR IN CROATIA THE MEAT SECTOR IN CROATIA This paper was written and compiled by Mélissa Boneté, Erasmus student at the Institute of High Studies in Social Communication (IHECS) March 2013 _____________________________________________________________________________________ Belgian Trade Office [email protected] Belgian Embassy T: +385 1 457 74 44 Pantovcak 125b1 F: +385 1 457 74 45 HR – 10000 Zagreb (Croatia) TABLE OF CONTENTS 1. Introduction ....................................................................................................................................... 2 2. General overview of Croatia ............................................................................................................... 2 2.1 General figures ................................................................................................................................... 3 2.2 Economy ............................................................................................................................................. 3 3. General situation of the meat sector .................................................................................................. 4 3.1 Farm structure .................................................................................................................................... 4 3.2 Livestock ............................................................................................................................................. 5 4. Meat consumption behaviour ............................................................................................................ 8 5. Government policies ........................................................................................................................... 9 5.1 Phytosanitary policy .......................................................................................................................... 9 5.2 Residue monitoring ............................................................................................................................ 9 6. Food production in and imports from Croatia ..................................................................................... 9 7. Meat processing and production ..................................................................................................... 13 8. Exports to Croatia ............................................................................................................................ 13 9. Prices ................................................................................................................................................ 16 10. Swot analysis .................................................................................................................................. 17 11. Contacts .......................................................................................................................................... 18 Fresh meat ............................................................................................................................................. 18 Chicken meat - production .................................................................................................................... 22 Commercial agencies for meat and sausage products .......................................................................... 23 Pork ........................................................................................................................................................ 25 Poultry farming ...................................................................................................................................... 30 Slaughter-houses, abattoirs ................................................................................................................... 34 Importers ............................................................................................................................................... 38 12. References ............................................................................................................................................ 42 1 _____________________________________________________________________ 1. INTRODUCTION This paper aims to give an overview of the meat sector in Croatia. The study starts with some general figures about Croatia and after that we look more specifically into the meat sector. First, there is a general overview of the Croatian meat sector that includes farm structure and livestock, which will help you to get a better understanding of the market. The following chapters deal with the general regulations, policies of the market and the import/export activity in Croatia. This information will help you to identify the trends in this sector. The ninth chapter continues with an overview of prices in Croatia and deals with the agricultural competitiveness on the EU market. The Croatian accession to the EU will certainly have a strong influence on the Croatian agriculture, its production structure and competitiveness, measured by producer price levels. The next chapter includes a SWOT analysis concerning productivity, competitiveness, and new technologies, to have a general look on the meat sector and its opportunities. To conclude, there is a list of contacts in the meat sector. 2. GENERAL OVERVIEW OF CROATIA With an area of 56 594 km2, the Republic of Croatia is a Central European and Mediterranean country, culturally and historically linked to Central and Eastern Europe, with a good geostrategic position. It borders Slovenia, Hungary, Serbia, Montenegro and Bosnia-Herzegovina. Moreover, Croatia has a marine border with Italy. The capital city is Zagreb, which is also a political, administrative and economic centre, a university centre and the city of culture and arts. During the 20th century, Croatia was part of the Socialist Federal Republic of Yugoslavia, ruled under the communist system, i.e. having state-owned companies. Croatia became an independent state in 1991 when a democratic, multi-party political system was adopted and political/economic reforms were implemented. In 2012 the population estimate, is 4,480,043 million inhabitants with an average density of 78.1 inhabitants per km2. Over the past few years, Croatia has been making efforts to join the European Union. The Republic of Croatia is expected to become a member of the European Union on the 1st of July 2013. Meat sector | Croatia | March 2013 ______________________________________________________________________ 2 2.1 GENERAL FIGURES The following table presents some general figures about Croatia. Area 56,594 km2 Population 4,480,043 million inhabitants Nationality Croatian Capital Zagreb Population in Zagreb 779,000 inhabitants Language Croatian Currency Croatian Kuna (HRK) Government Parliamentary Democracy President Social Democratic (SDP) Ivo Josipovic was elected for a five-year term in January 2010 Prime Minister Zoran Milanović (2012-present) Minister of Agriculture Tihomir Jakovina (2012-present) 2.2 ECONOMY The below diagram shows the main economic indicators. 1 Population 4,480, 043 (July 2012 est.) Human Development Index (IDH) 0.796 (2011) GDP growth rate in 2012 1.1% GDP € 8.42 billion GDP (per capita) € 13.45 billion GDP (composition by sector) - Agriculture 5,1% - Industry 24,9% - Services 70% Inflation rate 1,9% (2013 est.) Average Monthly Salary (gross) 7,894 HRK/€ 1,040.03 (January 2013 est.) Average Monthly Salary (net) 5,487 HRK/€ 722.99 (January 2013 est.) Unemployment Rate 21,9% (2013 est.) Exports, m EUR € 9.73 billion (2012 est.) Imports, m EUR € 15.76 billion (2012 est.) Global Competitiveness Index 4.08 Main commercial partners Italy Bosnia and Herzegovina Germany Slovenia Austria 1https://www.cia.gov/library/publications/the-world-factbook/geos/hr.html http://www.globalpropertyguide.com/Europe/Croatia/competitiveness 3 _____________________________________________________________________ Serbia Currency Kuna (HRK) Average Exchange Rate/Euro 7.60 HRK Average Exchange Rate/Dollar 5.64 HRK Table 1: Economic Indicators of Croatia As shown by the analyzed data, the economic growth remained stable until the global economic recession of 2008. As a result, GDP decreased to -6% in 2009 and to -1.2% in 2010. Furthermore, the unemployment rate increased and many sectors were affected by this global turndown. The negative growth is likely to continue throughout 2013. With over € 1 billion of annual export, the industrial sector is dominated by shipbuilding (> 10% of exported goods). Food processing and chemical industry also account for significant portions of the industrial output and exports. The industrial sector represents 27% of Croatia’s total economic output while agriculture represents 6%. The industrial sector is responsible for 25% of Croatia's GDP, with agriculture, forestry and fishing accounting for 5% of Croatian GDP and services for the remaining 70%. The Croatian agricultural sector subsists from exports of blue water fish, which in recent years experienced a tremendous surge in demand, mainly from Japan and South Korea. Croatia is a notable producer of organic food and much of it is exported to the European Union. Tourism is traditionally a notable source of income, particularly during the summer months, but also more recently during the winter months as well, due to an increase in popularity of snow sports such as skiing. With over 10 million foreign tourists annually, tourism generates revenue in excess of € 7