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Country Report Croatia ARCOTRASS- Consortium Study on the State of Agriculture in Five Applicant Countries CROATIA Country Report December 2006 "This study, financed by the European Commission, was undertaken by Arcotrass GmbH (Germany), in association with Vakakis International SA (Greece), EuroCare GmbH (Germany) and AKI (Hungary). The conclusions and opinions presented in this report are those of the Consultants and do not necessarily reflect the opinion of the European Commission". Country Report: Croatia ARCOTRASS- Consortium Study on the State of Agriculture in Five Applicant Countries Table of Contents 1. INTRODUCTION .........................................................................................................1 1.1 OVERVIEW OF THE COUNTRY ................................................................................... 1 1.2 DATA AVAILABILITY AND SOURCES ........................................................................... 2 2. ECONOMIC COUNTRY BACKGROUND .........................................................................4 2.1 MACRO- AND SOCIO-ECONOMIC SITUATION .............................................................. 4 2.2 AGRICULTURE IN THE ECONOMY .............................................................................. 5 3. LAND USE, FARM STRUCTURE AND FARM INCOME ....................................................7 3.1 LAND USE AND QUALITY .......................................................................................... 7 3.2 LAND OWNERSHIP AND PRIVATISATION.................................................................... 9 3.3 FARM STRUCTURE ................................................................................................. 11 3.4 FARM INCOME AND EMPLOYMENT........................................................................... 13 4. AGRICULTURAL PRODUCTION .................................................................................15 4.1 TOTAL AGRICULTURAL PRODUCTION (GAO, MAIN PRODUCTS) .................................. 15 4.2 CROP PRODUCTION ............................................................................................... 16 4.3 LIVESTOCK PRODUCTION ....................................................................................... 20 4.4 FOOD CONSUMPTION............................................................................................. 25 4.5 AGRICULTURAL PRICES .......................................................................................... 26 5. AGRI-FOOD INDUSTRY ............................................................................................28 5.1 OVERVIEW ............................................................................................................ 28 5.2 MAIN FOOD INDUSTRIES........................................................................................ 28 5.3 ASSESSMENT OF FOOD INDUSTRY .......................................................................... 32 6. SUPPORT SERVICES .................................................................................................34 6.1 FINANCIAL SUPPORT SERVICES .............................................................................. 34 6.2 AGRICULTURAL EDUCATION, EXTENSION AND INFORMATION SYSTEMS..................... 36 6.3 INPUT SUPPLY....................................................................................................... 37 7. AGRICULTURAL AND FOOD POLICY .........................................................................39 7.1 INSTITUTIONAL FRAMEWORK AND POLICY CONCEPTS.............................................. 39 7.2 BUDGETARY RESOURCES........................................................................................ 40 7.3 AGRICULTURAL AND FOOD POLICIES ...................................................................... 41 7.4 FOOD SAFETY AND QUALITY POLICIES .................................................................... 43 8. AGRICULTURAL TRADE AND TRADE POLICY ............................................................45 8.1 TRADE POLICY....................................................................................................... 45 8.2 AGRICULTURAL TRADE........................................................................................... 48 8.3 AGRICULTURAL TRADE WITH THE EU ...................................................................... 51 9. RURAL DEVELOPMENT AND RURAL POLICY .............................................................55 9.1 MAIN CHARACTERISTICS OF RURAL AREAS .............................................................. 55 9.2 RURAL DEVELOPMENT POLICY ................................................................................ 59 9.3 REGIONAL POLICY ................................................................................................. 62 9.4 AGRO-ENVIRONMENTAL POLICY.............................................................................. 62 Country Report: Croatia page I ARCOTRASS- Consortium Study on the State of Agriculture in Five Applicant Countries ANNEXES: Annex 1: EU AND OTHER DONOR SUPPORT TO AGRICULTURE AND RURAL DEVELOPMENT Annex 2: REAL PROPERTY REGISTRATION AND CADASTRE PROJECT Annex 3: AGRICULTURAL TRADE Annex 4: RURAL SITUATION Annex 5: RURAL POLICY Annex 6: REGIONS Annex 7: MARKET SUPPORT MEASURES List of Tables Table 1: Main macroeconomic indicators in comparison with EU (2000 - 2005).............................. 4 Table 2: Key agricultural indicators in comparison with EU .......................................................... 6 Table 3: Land use in comparison with EU (‘000 ha) (2004) ......................................................... 8 Table 4: Farm Structure ........................................................................................................ 13 Table 5: Share of agricultural labour in overall employment and comparison with EU (2005) ........ 13 Table 6: Development of Employment in Croatia (1999 – 2003) ................................................ 14 Table 7: Gross Agricultural Output for main agricultural commodities (Mio. Euro) ........................ 15 Table 8: Crop area (1000 ha), production (1000 t) and yield trends in crop production for Croatia, 2000-2005................................................................................................. 16 Table 9: Supply Balance sheets for main crop products (2004) .................................................. 20 Table 10: Livestock numbers and production (carcass weight) 2001- 2005 and comparison with EU 25 (2005) ......................................................................................................... 20 Table 11: Supply Balance sheets for Raw Milk (2004) ............................................................... 22 Table 12: Supply Balance sheets for main livestock products (2004) .......................................... 23 Table 13: Per capita consumption of basic agricultural products (2003) ...................................... 26 Table 14: Producer Prices for Agro-Food products (‘00 –‘05) ..................................................... 26 Table 15: Production of selected food industry products ........................................................... 29 Table 16: Croatian Slaughterhouses (2005)............................................................................. 30 Table 17: Croatian Agricultural Budgets 1994 – 2004 (in Mio. Euro) ........................................... 41 Table 18: Tariffs in Croatia (2006).......................................................................................... 47 Table 19: Agricultural Trade (global) in Million Euro ................................................................. 48 Table 20: Agro-food exports and imports according to destinations/ origin (mio Euro) ................. 49 Table 21: Share of main agricultural commodities in Foreign Trade 2004 (in million Euro and %) ....................................................................................................................... 50 Table 22: Croatian Agricultural Foreign Trade with the EU (million €) ......................................... 52 Table 23: Indicators for Rural Development, Environment and Quality of Life (for 2001) .............. 55 Table 24: Population, Area and GDP at County level (2003) ...................................................... 57 Table 25: Croatian Rural Development projects in 2006............................................................ 60 List of Figures Figure 1: Average share of household expenditures on food and non-alcoholic beverages in comparison with the EU (in %, 2000 – 2005) ............................................................ 25 Figure 2: Sugar production in tonnes (expressed as white sugar equivalent)............................... 32 Figure 3: Croatian Agricultural Foreign Trade with the EU (million €).......................................... 52 Country Report: Croatia page II ARCOTRASS- Consortium Study on the State of Agriculture in Five Applicant Countries Abbreviations AC Agricultural Census ACE Action for Cooperation in the field of Economics AK Agro-kombinat AMIS Agro-food Market Information System BIP Border Inspection Procedures BiH Bosnia and Herzegovina CAAC Croatia Agricultural Acquis Cohesion Project (WB project) CAEI Croatian Agriculture Extension Institute CAP Common Agricultural Policy of the EU CARDS Community Assistance for Reconstruction, Development & Stabilisation CASB Croatian Agency for Small Business CBRD Croatian Bank for Reconstruction and Development CBS
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