Table of content
7. FINANCIAL PLAN, SUBSIDY LEVEL AND THE LEVEL OF EU CONTRIBUTION ...... 282
List of tables
TABLE 2-1: LAND USE CATEGORIES.................................................................................................................. 3
TABLE 2-2: REGIONAL OPERATION PROGRAMMES IN RC ............................................................................... 7
TABLE 2-3: RURAL AND URBAN AREAS, POPULATION AND SETTLEMENTS ACCORDING TO OECD CRITERION
................................................................................................................................................................. 11
TABLE 2-4: DISTRIBUTION OF RURAL AREAS ACCORDING TO OECD CRITERIA ............................................ 11
TABLE 2-5: MAIN MACROECONOMIC INDICATORS 2000 - 2005..................................................................... 15
TABLE 2-6: EMPLOYMENT AND INCOME SITUATION 2000 – 2005 (PER EMPLOYEE) ..................................... 16
TABLE 2-7: CHANGE IN AGRICULTURAL POPULATION (1991–2001) ............................................................. 20
TABLE 2-8: DISTRIBUTION OF TSOG, NUMBER OF BEDS AND OFFERING BY COUNTY (2007) ...................... 26
TABLE 2-9: DEVELOPMENT OF FARM TOURISM UNITS (FT) (2000 – 2007) .................................................. 27
TABLE 2-10: THE SHARE OF THE AGRICULTURAL SECTORS IN THE GROSS DOMESTIC PRODUCT (2000-
2005)....................................................................................................................................................... 31
TABLE 2-11: EMPLOYMENT STRUCTURE IN AGRICULTURE, FISHERY AND FORESTRY (2000 – 2005).......... 31
TABLE 2-12: ACTIVE PERSONS AND EMPLOYMENT IN AGRICULTURE ACCORDING TO SEX ............................ 32
TABLE 2-13: AVERAGE SALARIES IN BUSINESS ENTITIES IN THE AGRICULTURE AND FOOD PROCESSING
INDUSTRY, 2000 - 2005 (IN EUR) .......................................................................................................... 33
TABLE 2-27: CHANGES IN THE NUMBER OF PRODUCERS AS TO THE VOLUME OF ANNUAL PRODUCTION (2003
- 2005) .................................................................................................................................................... 47
TABLE 2-28: OVERVIEW OF THE PURCHASED MILK QUANTITIES ACCORDING TO QUANTITY CLASSES (2003 -
2005)....................................................................................................................................................... 48
TABLE 2-29: GEOGRAPHICAL DISTRIBUTION OF RAW MILK PRODUCTION BY COUNTIES (2005) ................... 49
TABLE 2-30: OVERVIEW OF PURCHASED AND PROCESSED MILK BY DAIRIES ................................................ 51
TABLE 2-31: VOLUME AND STRUCTURE OF THE MOST IMPORTANT DAIRY PRODUCTS MANUFACTURED IN
DAIRY PLANTS (2002 - 2005, IN TONS)................................................................................................... 52
TABLE 2-70: TRENDS IN FISH - PROCESSING (IN TONS, 1999 - 2005) .......................................................... 87
TABLE 2-71: DISTRIBUTING CENTRES AND CENTRES FOR SHELLFISH PURIFICATION (2006) ....................... 88
TABLE 2-72: PRICES OF MOST SIGNIFICANT FISH SPECIES - MARINE FISHERIES CATCH IN EUR (2000 -
2006)....................................................................................................................................................... 88
TABLE 2-73: IMPORT AND EXPORT OF FISH AND FISH PRODUCTS VOLUME AND VALUE (2000 - 2005) ........ 89
TABLE 2-74: SHARE OF EXPORTED FISH AND FISH PRODUCTS OF TOTAL VALUE (2004, %) ........................ 89
TABLE 2-75: SITUATION IN THE REGISTER OF AGRICULTURAL HOLDINGS REGARDING APPLICATIONS FOR
GRAIN SUBSIDIES ..................................................................................................................................... 92
TABLE 2-82: SUPPLY - DEMAND BALANCE FOR OIL CROP PRODUCTION (2000 - 2004)................................ 98
TABLE 2-83: PRICE FLUCTUATIONS IN THE OIL CROP MARKET (2001 - 2005) .............................................. 99
TABLE 2-84: PRODUCTION OF SELECTED FRUIT TYPES AND NUMBER OF PLANTED FRUIT TREES (2000 -
2005)..................................................................................................................................................... 100
TABLE 2-85: TOTAL TREE NUMBER OF SELECTED FRUIT KIND AND SHARE OF PLANTATION ORCHARDS..... 101
TABLE 2-86: FRUIT IMPORT SHARE ON THE MARKET OF CROATIA FROM 1997 - 2003............................... 101
TABLE 2-87: TRENDS IN VEGETABLES PRODUCTION 1999 - 2004 .............................................................. 103
TABLE 2-88: PRODUCTION OF CERTAIN VEGETABLES TYPES ...................................................................... 104
TABLE 2-89: DISTRIBUTION OF GREENHOUSE PRODUCTION OF SOME VEGETABLE TYPES, ESTIMATION.... 106
TABLE 2-90: TREND IN AVERAGE VEGETABLE YIELDS, T/HA 1998-2002 .................................................... 107
TABLE 2-91: VEGETABLES PRICES ON THE GROSS MARKETS, 1998 - 2003 (EUR/KG) ............................. 108
TABLE 2-92: VEGETABLES PRICES ON THE LOCAL GREEN MARKETS, 1998 - 2003 (EUR/KG) .................. 108
TABLE 2-93: TRENDS IN IMPORT - EXPORT BALANCE OF VEGETABLES, 1999 – 2003, USD...................... 109
TABLE 2-94: MUSHROOM EXPORT - IMPORT VALUE ..................................................................................... 110
TABLE 2-95: FOREIGN TRADE BALANCE (1997 - 2003)............................................................................... 112
TABLE 2-96: IMPORT - EXPORT BALANCE OF FRUIT PRODUCTS (2000 - 2004)........................................... 113
version of 14. 12. 2007; XI
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
TABLE 2-97: PRODUCTION, IMPORT AND EXPORT OF FRUIT PRODUCTS (2001 - 2004) ............................. 114
TABLE 2-98: PRODUCTION OF GRAPE (1999 - 2004) .................................................................................. 116
TABLE 2-99: VINEYARDS IN HA AND BY OWNERSHIP PER COUNTY (2003) .................................................. 117
TABLE 2-100: AVERAGE NATIONAL YIELD PER HECTARE ............................................................................. 117
TABLE 2-101: NUMBER OF HOUSEHOLDS AND LEGAL ENTITIES WITH VINEYARDS, BY COUNTIES (2003)... 118
TABLE 2-102: NUMBER OF PRODUCERS (GRAPE, WINE AND FRUIT WINE) WHO SELL THEIR WINE ON THE
MARKET, BY COUNTIES, 2003-2005 ..................................................................................................... 120
TABLE 2-114: TABLE OLIVES PRODUCTION, IMPORT - EXPORT; CONSUMPTION AND SELF - SUFFICIENCY
RATIO (2000 - 2005)............................................................................................................................. 130
TABLE 2-115: AVERAGE PRODUCTION PRICES (EUR/L) OF RAW AND NON - REFINED OLIVE OIL (2000 -
2005)..................................................................................................................................................... 131
TABLE 2-116: QUANTITIES OF WOOD WASTE IN DISPOSAL IN THE WOOD INDUSTRY................................... 134
TABLE 2-117: THEORETICAL POWER POTENTIAL OF USABLE BIOMASS AS A RESULT OF FOREST
MANAGEMENT ........................................................................................................................................ 134
TABLE 2-118: TIMETABLE FOR ACCREDITATION AND IMPLEMENTATION OF PILOT AE MEASURES .............. 138
TABLE 2-119: NITROGEN BUDGET OF CROATIAN AGRICULTURE IN PERIOD 2001 - 2003 .......................... 140
TABLE 2-120: DEVELOPMENT DISPARITIES AMONG CROATIA'S COUNTIES ................................................. 155
TABLE 2-121: CROATIA - INEQUITIES WITH RESPECT TO THE EUROPEAN UNION ....................................... 156
TABLE 3-1: MAFWM BUDGET (1998 - 2007).............................................................................................. 168
TABLE 3-2: AID STRUCTURE, 2001 - 2005 IN % .......................................................................................... 170
TABLE 3-3: SHARE OF CERTAIN PRODUCTION TYPES IN TOTAL DIRECT PAYMENTS .................................... 170
TABLE 3-4: DIRECT PAYMENTS FOR ORGANIC PRODUCTION (2003 - 2005) ............................................... 171
TABLE 3-5: OVERVIEW OF THE IMPLEMENTATION OF THE MODEL OF CAPITAL INVESTMENTS IN 2003 ....... 172
TABLE 3-6: OVERVIEW OF REQUEST FOR INCOME AID IN 2003 PER COUNTY.............................................. 175
TABLE 3-7: OVERVIEW OF AID FOR AGRICULTURAL ASSOCIATIONS, 2003 - 2006 ...................................... 177
TABLE 3-8: OVERVIEW OF AID FOR AGRICULTURAL SECONDARY SCHOOLS, 2001 - 2005 ......................... 178
TABLE 3-9: OVERVIEW OF AUTOCHTHON AND PROTECTED BREEDS AID REQUEST, 2001 - 2004 .............. 179
TABLE 3-10: OVERVIEW OF SUBSIDIES PAID FOR AUTOCHTHON AND PROTECTED BREEDS, 2001 - 2004 IN
HRK AND EUR...................................................................................................................................... 179
version of 14. 12. 2007; XII
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
TABLE 3-11: OVERVIEW OF AID FOR MARKETING PREPARATION OF AGRICULTURAL FOOD PRODUCTS, 2001 -
2006 ...................................................................................................................................................... 180
TABLE 3-12: OVERVIEW OF THE AID TO INSURANCE PER YEARS AND COUNTIES (2003 - 2005)................ 186
TABLE 3-13: LIST OF PSO PROJECTS .......................................................................................................... 196
TABLE 3-14: WB PROJECTS IN THE REPUBLIC OF CROATIA ........................................................................ 198
TABLE 4-1: SPECIFIC OBJECTIVES PER SELECTED PRIORITY ....................................................................... 206
TABLE 5-1: OCCUPATIONAL SKILLS AND COMPETENCE CRITERIA ................................................................ 215
TABLE 5-2: ALLOCATION OF FUNDS FOR MEASURE 101. ............................................................................ 219
TABLE 5-3: ALLOCATION OF FUNDS PER SECTOR ........................................................................................ 220
TABLE 5-4: EXPECTED NUMBER OF ELIGIBLE INVESTMENTS PER SECTOR .................................................. 220
TABLE 5-5: OUTPUT, RESULT AND IMPACT INDICATORS............................................................................... 220
TABLE 5-6: INDICATIVE BUDGET FOR MEASURE 103. .................................................................................. 229
TABLE 5-7: ALLOCATION OF FUNDS UNDER MEASURE 103......................................................................... 229
TABLE 5-8: EXPECTED NUMBER OF ELIGIBLE INVESTMENTS PER SECTOR .................................................. 230
TABLE 5-9: OUTPUT, RESULT AND IMPACT INDICATORS............................................................................... 230
TABLE 5-10: PILOT AREAS AND MEASURES .................................................................................................. 233
TABLE 5-11: ALLOCATION OF FUNDS FOR MEASURE 201 ........................................................................... 242
TABLE 5-12: ESTIMATED NUMBER OF HA UNDER AE MEASURES, 2007 - 2013.......................................... 242
TABLE 5-13: TIMEFRAME FOR LEADER IMPLEMENTATION ......................................................................... 247
TABLE 5-14: ALLOCATION OF FUNDS FOR MEASURE 202 ........................................................................... 248
TABLE 5-15: OUTPUT, RESULT AND IMPACT INDICATORS FOR SUB - MEASURE 1 ....................................... 250
TABLE 5-16: OUTPUT, RESULT AND IMPACT INDICATORS FOR SUB – MEASURE 3....................................... 255
TABLE 5-17: INDICATIVE BUDGET FOR MEASURE 301................................................................................. 260
TABLE 5-18: ALLOCATION OF FUNDS UNDER MEASURE 301....................................................................... 260
TABLE 5-19: EXPECTED NUMBER OF ELIGIBLE INVESTMENTS PER SECTOR ................................................ 260
TABLE 5-20: INDICATIVE BUDGET FOR MEASURE 302 ................................................................................. 267
TABLE 5-21: INDICATIVE ALLOCATION OF FUNDS PER SECTOR (2007 – 2011)........................................... 267
TABLE 5-22: ALLOCATION OF FUNDS PER SECTOR (2012 - 2013).............................................................. 268
TABLE 5-23: EXPECTED NUMBER OF ELIGIBLE INVESTMENTS PER SECTOR ................................................ 268
TABLE 5-24: INDICATIVE BUDGET FOR MEASURE 501 ................................................................................. 271
TABLE 5-25: LIST OF INDICATORS FOR MEASURE 501 ................................................................................ 271
TABLE 6-1:COMPLEMENTARITY AND DEMARCATION BETWEEN NATIONAL SUPPORT SCHEMES AND IPARD
PROGRAMME .......................................................................................................................................... 279
TABLE 7-1: MAXIMUM EU CONTRIBUTION FOR IPARD FUNDS IN EUR, 2007 - 2011................................ 282
TABLE 7-2: FINANCIAL PLAN PER PRIORITY AXIS IN EUR, 2007 - 2011 ...................................................... 282
TABLE 7-3: INDICATIVE BREAKDOWN BY MEASURE, 2007 - 2011 ............................................................... 282
TABLE 7-4: INDICATIVE ALLOCATION OF EU CONTRIBUTION BY MEASURE 2007-2011 IN EUR FOR
MONITORING PURPOSE .......................................................................................................................... 283
GRAPH 2-4: TRENDS IN PIG PRODUCTION (NO. OF HEADS, 1990 - 2005) .................................................... 55
GRAPH 2-5: STRUCTURE OF FAMILY HOLDINGS ACCORDING TO NUMBER OF PIGS (2003)........................... 57
GRAPH 2-6: STRUCTURE OF LEGAL ENTITIES ACCORDING TO THE NUMBER OF PIGS (2003) ....................... 57
GRAPH 2-7: CONSUMPTION OF PIG MEAT PER HOUSEHOLD MEMBER (1999 - 2004) ................................... 60
GRAPH 2-8: DISTRIBUTION OF FAMILY HOLDINGS BY NUMBER OF CATTLE (2003, PERCENTAGE)................ 64
GRAPH 2-9: DISTRIBUTION OF LEGAL ENTITIES ACCORDING TO THE NUMBER OF CATTLE (2003)................ 65
GRAPH 2-10: STRUCTURE OF CEREAL PRODUCERS BY FARM SIZE (2003)................................................... 92
GRAPH 2-11: OIL SEED PRODUCERS STRUCTURE (2003)............................................................................. 98
GRAPH 2-12: DISTRIBUTION OF FAMILY FARMS BY NUMBER, SIZE AND TYPE OF ORCHARD, 2003............. 102
GRAPH 2-13: DISTRIBUTION OF LEGAL ENTITIES BY NUMBER AND SIZE, 2003 ........................................... 103
GRAPH 2-14: DISTRIBUTION OF FAMILY FARMS ACCORDING TO NUMBER, SIZE AND TYPE OF PRODUCTION,
2003 ...................................................................................................................................................... 105
GRAPH 2-15: DISTRIBUTION OF LEGAL ENTITIES BY NUMBER, SIZE AND TYPE OF PRODUCTION, 2003...... 106
GRAPH 2-16: COMPARISON OF AVERAGE VEGETABLE YIELD, T/HA ............................................................. 108
GRAPH 2-17: AVERAGE SELLING GROSS MARKET PRICES (EXCLUDING VAT, IN HRK/KG) ........................ 109
GRAPH 2-18: STORAGE (COOLING) CAPACITIES FOR FRUITS AND VEGETABLES (IN T) ............................... 115
GRAPH 2-19: STRUCTURE OF FAMILY FARMS BY SIZE, 2003 ...................................................................... 119
GRAPH 2-20: STRUCTURE OF WINE PRODUCERS BY SIZE (HA), 2004......................................................... 120
GRAPH 2-21: DISTRIBUTION OF BIG PRODUCERS BY SIZE (2005)............................................................... 122
GRAPH 3-1: NATIONAL AID SYSTEM IN AGRICULTURE .................................................................................. 167
GRAPH 3-2: RURAL DEVELOPMENT SCHEME .............................................................................................. 176
GRAPH 3-3: OPERATIONAL PROGRAMMES OF CROATIA .............................................................................. 181
GRAPH 4-1: OBJECTIVES HIERARCHY .......................................................................................................... 207
List of maps
MAP 2-1: 21 COUNTIES (ŽUPANIJA) OF THE REPUBLIC OF CROATIA ............................................................... 6
MAP 2-2: DISTRIBUTION OF COUNTIES AT NUTS 2 LEVEL............................................................................... 6
MAP 2-3: STRUCTURE OF SETTLEMENTS IN CROATIA, BY NUMBER OF INHABITANTS (2003) ....................... 10
MAP 2-4: AREAS WITH DIFFICULT CONDITIONS FOR AGRICULTURAL PRODUCTION AND MANAGEMENT ........ 13
MAP 2-5: LOCATIONS OF MINE FIELDS IN CROATIA (2005)............................................................................ 14
MAP 2-6: POPULATION AGED 65 AND OLDER AS SHARE OF TOTAL POPULATION AND GEOGRAPHICAL
DISTRIBUTION .......................................................................................................................................... 18
1. E XSPLANATORY MEMORANDUM
The information provided in this document is a description of the situation at the time of drafting
the programme and the approval of the IPARD programme will not constitute acceptance of the
institutional structure and national legislation by the European Commission.
All the numbers in the document are written in the following way:
Point – “.” – represents a thousand separator (i.e. 100.000, meaning hundred thousand)
Comma – “,” – represents decimal space (i.e. 1,55 meaning one and a fifthy five)
According to the relief and clime, Croatia can be grouped into three large geographical regions
(Pannonian Region, Mountain Region and Adriatic Region), which are subdivided into different
agricultural regions and sub regions. Out of a total 4,4 million residents (2001), 64% lived in the
Pannonian Region (of which 31% lived in the Eastern and 69% in the Western part), 30,2%
percent in the Adriatic Region while only 5,8% was living in the mountain region.
The Pannonian and peri-Pannonian Region is a lowland area situated in the north of Croatia
and in the eastern part (Slavonia) and is characterized by a moderate continental climate and
version of 14. 12. 2007; 3
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
strictly defined seasons. It consists mainly of plains and some low mountain ranges (Zagorje,
Međimurje), and being drained by the rivers Sava and Drava and their tributary streams
towards the Danube. It covers almost half (47%) of the total land surface and two third of the
total population and comprises the demographic and economic centre round the cities Zagreb,
Karlovac and Sisak. The area is also rich in oil and natural gas reserves, quartz sand, clay,
thermal springs and other natural resources. The fertile soil, moderate climate and favourable
precipitation regime provide an excellent natural potential for intensive agricultural production,
and pertaining the region as the granary of Croatia with excellent results being also achieved in
wine cultivation. An important economic activity is therefore primary food production and the
food processing industry. Forests and woods give a sound basis for the development of heavy
timber and wood processing industry. Due to the rich and divers natural reserves, tourism has
developed in the Pannonian area in form of health resorts, hunting, fishing, recreational and
rural tourism activities. Good domestic road and railroad connections, but also with
neighbouring countries contribute to the prospering development of the Pannonian region.
Although the Pannonian region has an overall high natural and economic development
potential, its capacities are not yet fully used. Many primary and secondary production
capacities, which were devastated or abandoned during the war 1991 - 1995, especially in the
eastern and western parts of Slavonia, are not yet restored and large agricultural and forests
areas still being under mines. Additionally, the consequences of transitional problems due to
incomplete privatization of former state-owned agricultural cooperatives, unresolved issue of
land ownership titles or the misuse of former state-owned property have shaped the agricultural
production system.
The Dinaric Mountain and Hill Region is the second area, which covers heterogeneous
landscapes with some karsts terrains in the hinterlands of Karlovac, high valleys (Lika and
Krbava) between the Velebit Mountains and West Bosnia, mountain massifs (Mala Kapela,
Velika Kapela or Gorski Kotar) and a small part of the northern Dalmatian hinterland. These
middle and high mountain massifs represent the water shed between the Danube and the
Adriatic Sea. Natural resources of the region comprise forests, lake areas, protected nature
reserves, clay sites and a diverse flora and fauna. The National Park “Plitvice Lakes“, which is
included in the UNESCO World Natural Heritage List, is situated in this area. It counts as one
of the most beautiful nature phenomenon in Europe with an area of 295 km², mostly forest
areas and 16 lakes that are connected with each other.
The predominating mountain climate has high precipitations up to 2.500 – 3.500 mm per
annum with lots of snow and a short vegetation period. The heterogeneous soil has developed
upon high silicate rocks, limestone or dolomites. The agriculture production systems are
adjusted to the mountainous climate conditions, and are thus mainly based on small, private
mixed farms with beef breeding as the main economic branch. The cultivation of field crops is
limited with mainly early maize, potatoes, rye and vegetables being cultivated. Agricultural
production has been traditionally extensive and due to this fact not many chemical substances
and mineral fertilizers have been used compared to other regions in Croatia providing
favourable conditions for organic farming combined with eco-tourism. Although the area is rich
in natural springs, forests and waters, a low population density, a degraded and
underdeveloped rural infrastructure (e.g. road infrastructure), as well as partly still deteriorated
production capacities caused during the war in the 1990’s, result in a very difficult development
process in this mountain region. The main economic activities in the rural areas remain the
primary production in agriculture and forestry, combined often with wood processing and
tourism. Almost all parts of this region receive government support as areas of special state
care (see Chapter 2.1.4).
The third region, the Adriatic Region, covers the continental Mediterranean Sea coast areas
and the islands. It ranges 1.777 km from Istria in the northwest, to the coast areas (Hrvatsko
Primorje) of Rijeka with the islands of the Kvarner Bay as well as Dalmatia with the cliffy coast
from Zadar, Split to of Dubrovnik and Konavli in the south, thereby having an enormous
variation in the breadth of the coastline. The Adriatic region is characterised by karst areas and
a Mediterranean climate with an increase of annual temperature and decrease in rainfall from
north to south. The sunny and hot climate favours the growth of high quality Mediterranean
field crops, fruits and vegetables like olives and figs. Due to its specific geographical location,
this region has a very complex natural environment and a very diverse flora and fauna with
version of 14. 12. 2007; 4
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
separate natural landscapes like islands, mountain massifs and coast areas. Small-scale
private agricultural production and fishing have a long tradition in the region, yet tourism is the
main economic activity in the coastal areas, followed by the food processing industry and a
highly developed service sector. From the economic point of view, the northern part of the
region (Istria) is the wealthiest part offering diverse employment opportunities and future
development possibilities due to a high entrepreneurial spirit of the population, a well-
developed infrastructure and the closeness to Zagreb. This part of the Adriatic region was also
not affected by the war in the 1990’s, contrary to the middle and southern part of Dalmatia,
where the war consequences are still obvious. Numerous production capacities are still
abandoned or totally ruined. However, improvements in the road infrastructure and the tourism
boom support the revival of the sub-region. Poorly populated islands with a low agricultural
production and industrial potential receive special state support.
1
OG 129/02, 44/02
version of 14. 12. 2007; 5
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Source: www.hr/maps/counties
After a few different proposals, the Institute of Economics in Zagreb was charged with the task
to elaborate a scientific study on NUTS regions issue. The study proposed to divide Croatia
into three statistical regions at NUTS level 2: North – West Croatia, East – Central Croatia
(Pannonian) and Adriatic Croatia. In April 2007 EUROSTAT gave positive opinion to such
classification.
Regardless new NUTS classification the data presented in the Plan are based on county level.
ROPs are developed at the county level with participation of local governments and other local
stakeholders in a partnership and supported technically by county level Project Implementation
Units (PIU) and their supporting external consultants.
The ROP) managers have taken a pro-active approach in searching for donor support and
support from the state budget for ROP implementation. Particular projects prepared within the
partnership on ROPs already meet the conditions for support from other pre-accession funds of
the EU, current projects financed by other international financial institutions (EIB, WB) and the
state budget.
Although at the very beginning the ROP as such was supposed to serve as a pilot project in a
very comprehensive, strategic and participative development planning process, and as a
preparation for future implementation of structural funds in the Republic of Croatia, the practice
by now and experience gained in the process of development and implementation of ROP,
especially partnership established and strengthened through this process, shows their
significant potential of institutionalizing regional and local development.
Local development support based on sustainable development principles has been realized
through co-financing the elaboration of „total development projects“ (PUR) for certain self-
government units. Ministry of Sea, Tourism, Traffic and Development, based on public tender,
during 2005 has contracted elaboration of PURs with 37 self-government units. In 2006, 65
new requests for co-financing were submitted, but due to lack of resources in the state budget,
contracts were not realized. In 2007, MAFWM has published a tender for local self –
government units providing financial means for PUR elaboration. Up until 30th of October 2007,
the MAFWM received 207 requests for support for elaboration of PURs’. They will be approved
or rejected in following months.
Main objective of PURs' elaboration is building of institutional capacities through encouraging
self-government units on planning, cooperation and partnership with entrepreneurs and civil
society which creates basis for joint work on future projects.
The existing legislation does not regulate significant issues indispensable for development
activities management, therefore lack of national guidelines and political framework within
which county development partnerships can function in the future can be noticed.
A significant effort regarding preparation of adequate legal framework for managing regional
development policy has been made within the CARDS 2002 project "Strategy and
strengthening of capacities for regional development". Within this project, under the
coordination of the relevant line ministry – the Ministry of Sea, Tourism, Transport and
Development (MSTTD), a draft proposal of the National Strategy of Regional Development
(NSRD) and general Act on Regional Development (ARD), was prepare at the national level.
By means of this Act, a coherent system of regional development management was prepared.
The draft proposal of the Act on Regional Development sets the legal foundation of regional
policy management. After its entering into force, the Act shall fill the gap currently existing in
the Croatian legal system, relating to the general regulation of the subject matter of regional
development management.
The Act shall serve as an instrument of fund management building that shall simultaneously be
standardized in the whole territory of Croatia, but also harmonized with practice and requests
that are the consequence of obligations of Croatia towards the European Union.
Draft Strategy of regional development and the new Act on Regional Development, introduce
comprehensive system of regional development and propose that ROPs as strategic
development documents at county level are eventually to be replaced by county development
strategies. The county development partnerships have furthermore a significant role in
preparation and monitoring of implementation of the county development strategies.
The county development strategies shall define development needs of counties (economic
development, employment, acquiring of necessary skills, infrastructure needs, environment,
local, urban and rural development, resolving of poverty problems and social exclusion) and
therefore in their preparation active participation of various interest groups shall be necessary.
Furthermore, the strategies shall be dealing with common strategic goals with other
neighbouring counties and needs and possibilities related to cross-border and cross-region
cooperation. Every county strategy shall have obligatory chapters relating to the following:
Social - economic needs of the county, including needs of big cities,
Needs of regions with development difficulties,
Priorities of cross-border and cross-region cooperation,
Coherence with local development plans (where existent),
Development needs of islands (in counties having islands).
The Strategy envisages an obligation of the central level to prepare National guidelines for
county development by means of which a broader context for county development strategies
shall be ensured, procedures of their drafting defined and a wider context of development
policy given, specifying national and EU development priorities that would be taken into
consideration at their preparation.
With the aim of capacity strengthening for development management at county level, the
Strategy envisages a stimulation of establishment and strengthening of county development
agencies that shall support and promote development activities in the county area and provide
assistance to county partnerships in their work, conduct various researches, provide assistance
in consultancy processes with local interest groups, draft strategic documents and provide
support in the implementation of county development strategies.Developed structures and
experience gained through above described activities will contribute to the implementation of
IPARD measures, in particular LEADER.
For administrative purposes, the differentiation between rural and urban areas in Croatia is
based on the local territorial divisions considering all communities under “municipalities” (426)
as “rural”, and those under “towns” (124) as “urban” areas. Based on this administrative
differentiation criterion, out of the total population of 4.437.460 (CBS, census data 2001),
44,4% (1.971.005) of the inhabitants were classified as rural and 55,6% (2.466.4559) as urban
population.
For policy formulation purposes, the mostly used criterion to separate rural and urban regions
is the OECD definition based on population density. The OECD developed the most common,
internationally applied definition to separate rural and urban regions. The OECD scheme
distinguishes two hierarchical levels of geographic detail, namely Local Community (LAU 1/2)
level and Regional level (mainly NUTS 3). Local Communities are classified as rural or urban,
based on the population density threshold of 150 inhabitants/km² alone. At regional level, the
OECD distinguishes these larger functional or administrative units by their degree of rurality,
depending on what share of the region’s population lives in rural communities and groups them
into three types: predominantly rural regions (more than 50% of regional population living in
rural communities), significantly rural regions (15 to 50% of the population living in rural
communities) and predominantly urban regions: less than 15% of the population living in rural
communities.
The CBS applies the local community threshold of 150 inhabitants/km² at county level to define
rural areas for Croatia as a whole. In 2001, 91,6% of the total area was classified as rural and
8,4% as urban, and 88,7% of the settlements were located in rural and 11,3% in urban areas
with 35% of the total population living in 14 towns with more than 30,000 inhabitants. As
regards the population, out of the total 4,437.460 inhabitants, 47,6% lived in rural and 52,4% in
urban areas (see Table 2-3). These figures underline the fact that the population density in
Croatia is very heterogeneous. On average, it amounts 78 inhabitants/km², ranging between 34
inhabitants/km² in rural up to 325 inhabitants/km² in urban areas.
Table 2-3: Rural and urban areas, population and settlements according to OECD criterion
OECD criteria
Classification
(2001) No of No of
km2 % % %
settlements inhabitants
If the OECD definition for the regional level is applied for Croatia at county level, a
differentiated picture on rural and urban areas is given (see Table 2-4). Clustering all
municipalities and towns (as the lowest level on which statistical information on area and
population is available) on the basis of population density in those two categories, i.e. urban
communities (population density > 150 persons/km²) and rural communities (population density
< 150 persons/km²), the calculation of each county’s share of population living in rural
communities shows following facts:
Croatia as a whole country exhibits a high degree of rurality;
The majority (14 out of 21) of counties are classified as predominantly rural regions
(over 50% of population lives in rural areas);
Five counties (i.e. Sisak - Moslavina, Karlovac, Lika - Senj, Virovitica - Podravina and
Šibenik - Knin) have an extremely high degree of rurality (i.e. as much as 90 - 100% of
counties’ total population lives in rural communities);
In 6 counties the share of total population living in rural communities varies between 15
- 50% (significantly rural regions); and
Only one county (City of Zagreb) can be described as predominantly urban (i.e. share
of county’s population living in rural areas is in this case lower than 10%).
For the purpose of this programme the definition of rural areas based on the OECD criteria
(see Table 2-4) will apply, unless otherwise specified under technical measure sheets in
chapter 5.
Map 2-4: Areas with difficult conditions for agricultural production and management
In 1998, the Croatian Government established the Croatian Mine Action Centre, which is
responsible for the mine action planning and the demining of polluted areas. The total area,
which is still polluted by mines according to the data collected by the Centre, amounts to
114.700 ha or 2,01% of the total land area. The highest pollution rate is given for forest areas
(61.940 ha), followed by agricultural areas and arable land (19.610 ha), macchia and karst
terrains (12.850 ha), grassland and pastures (10.670 ha). The largest mine-polluted forest
areas are situated in Lika - Senj county (12.020 ha), followed by Osijek - Baranja county
(11.890 ha) and Sisak - Moslavina county (11.520 ha). The largest share of agricultural areas
and arable land polluted with mines are located in Osijek - Baranja county (5.580 ha), Sisak -
Moslavina county (5.470 ha), Vukovar - Srijem county (4.680 ha), and in Karlovac county
(2.060 ha).
The funds allocated from the state budget reached 20,3 million EUR (150,3 million HRK) only
in the year 2006. 35% (32.000 ha) of the total mine polluted area, are considered as priority
demining areas (arable land, houses and infields, infrastructure objects and the largest part of
the grassland and pastures). Other mine-polluted areas relate to hill and mountain areas,
mainly covered with forests, and to other areas of no significant economic importance situated
far away from inhabited places. According to the National Demining Programme, the main
priorities have been the demining of houses, yards, infrastructure, roads and other areas in the
direct vicinity of the population. In the next step, the demining of agricultural and forest areas
will take place. Since the Croatia Government signed the Ottawa Convention, it committed
itself to the demining of the whole country until the year 2009. Although efforts have been
made in the demining, the results are far from being satisfactory.
By July 1st, 2007, total mine suspectable territory in Croatia was around 1.010 km2 (101.000
ha) of which 173,7 km2 (17.370 ha) is agricultural land. From 1998, only 212,54 km2 have
been demined which is 1/5 of total mine-polluted area.
2
Economic activites were grouped according to the NCEA Classification of Economic Activites in the EU.
version of 14. 12. 2007; 15
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Balance of payments
-2,4 -3,7 -8,6 -7,1 -4,9 -6,3
current account (% of GDP)
The overall boosting Croatian economy contributed to the stabilisation on the labour market,
although the registered unemployment rate still remains at a high level (see Table 2-6, see also
Table 2-12 and Table 2-13) with a similar rate for women and men. The average net income
level indicates an increasing tendency, yet the comparison between the sectors show, that the
average income in the primary sector is below those in the secondary and tertiary sector.
Table 2-6: Employment and income situation 2000 – 2005 (per employee)
INDICATORS 2000 2001 2002 2003 2004 2005
Average income in
Agriculture, hunting, 418,7 412,9 441,4 451,1 482,2 507,5
forestry (EUR)
Average income in
296,1 339,4 359,9 402,5 417,3 457,6
Fishery (EUR)
It can be estimated, based on the analysis of the Census data 2001 referring to the income and
employment situation of each municipality and town at county level that the income level of
families and households in rural areas are lower in comparison with those in urban areas. The
share of people, whose income from work is at the same time their main source of means for
living, is much lower for those living in rural areas (29%) than in urban areas (37%). The
percentage of those whose main source of income is the unemployment support is twice as
great in rural than in urban areas (FAO 2004). In mainly rural areas, many households live from
their subsistence farming as the main source of income.
The average registered unemployment situation in rural areas does not differ significantly from
the one in urban areas at county level. As far as the age structure of the total population and of
the unemployed persons is concerned, there is no significant difference between rural and
urban areas. Yet, in predominantly rural areas in some counties, e.g. in Šibenik - Knin,
Medimurje, or Varaždin, the unemployment rate is above 30%. If taken the hidden employment
in terms of family members working on the family farm or part-time employees that are not
registered, the situation on the labour market in rural areas is worse than given in the official
statistics.
According to the data obtained from the Ministry of Health and Social Welfare, in August 2007
there were 47.716 applicants entitled to the social support, making the total of 105.755 people
while that number in 2002 was 53.119 aplicants and 121.778 people In many predominantly
rural areas the percentage of people receiving social support was 3 to 4 times higher than the
national average registered Šibenik - Knin county (9,4%), Karlovac county (6,4%), Međimurje
county (4,9%), Virovitica - Podravina county (7,1%), Sisak - Moslavina county (7,4%), Brod -
Posavina county (6,6%) and Osijek - Baranja county (12,8%).
It can be assumed that the number of social support receivers, especially in rural areas, would
be even higher if the Ministry of Health and Social Welfare had not had a right to enter a claim
in the land register on property owned by a claimant. Although it is not a ‘mortgage’ but a type
of insurance against possible misuse, some would-be claimants are repelled by this fact. This
is especially true for elderly, single households in rural areas since they are distrustful of this
institution preferring to give up the claim than let it be entered in the land register.
In February 2007 World Bank has presented report “Croatia – Living Standard Assessment”.
According to this report, poverty in Croatia is found to be quite limited. Some 11% of the
population is poor, and another 10% is at risk of poverty in the sense that their average
consumption level is less than 25% above the poverty line. Some groups, numbering about 1%
of the population, face severe deprivation. Households that are small (1 - 2 people) and large
(more than 6 people) face greater poverty risks than others. More than three-quarters of the
poor live in households headed by individuals with only primary or less education. And poverty
is tightly associated with the activity status of the head of household, who are retired,
unemployed, or economically inactive feature prominently among the poor. Retired people are
more vulnerable to poverty in rural areas than in urban.
One fourth of the poor live in houses without water supply, and 8% live in houses without
toilets, and 8% without a telephone line. In general, as one might have expected, access to
services in Croatia is considerably worse in rural areas compared to urban, and for the poor
compared to the non-poor.
Households headed by unemployed are a small but very vulnerable group.
Women have higher unemployment rates and lower wages than other labour market
participants. Employment rates among youth and average earnings are particularly low - fewer
than one in four people aged 15 - 25 years have jobs, and the unemployment rate for this age
group is three times that of the age group 25 - 50.
Map 2-6: Population aged 65 and older as share of total population and geographical
distribution
Additionally to the ageing of the rural population, a much lower percentage of young women
(age of 20 - 29) and much lower proportion of women in reproductive age (between 18 - 49
years) of total population live in rural regions compared with urban areas. In extreme rural
regions, the respective coefficient equals to only 35% (e.g. Sisak - Moslavina county), i.e.
about 10 – 14% lower than in the majority of urban regions (48 – 49%). As regards the share of
the work contingent (% of females 15 - 59 years and males 15 - 65 years) in total population
living in rural areas (approximately 60%) compared with urban areas (approximately 66%), the
lowest share exhibits the extreme rural regions (e.g. Sisak - Moslavina county approx. 54%,
Lika - Senj county approx. 56%).
Although in both, rural as well urban areas, the natural population growth has been negative in
recent years; there has been a much stronger decline in rural areas compared to urban
regions. In predominantly rural areas, the population decline was approximately three times
stronger than in predominantly urban regions. In some predominantly rural counties, e.g. Sisak
- Moslavina county, a natural decline of population in the years 1998 - 2001 was approximately
five times stronger than the average of Croatia. Natural population growth rates differed
strongly among the regions. In predominantly rural areas the vital index (live births per 100
deaths) during the years 1998 - 2002 amounted to less than 50%, e.g. Lika - Senj county,
compared with 100 - 112% in Zadar County or 100 - 120% in Dubrovnik - Neretva county.
Strong negative growth rates of rural population is a trend which has divers origins: a low share
of women in reproductive age living in rural areas, inadequate living conditions for young
families, change of living pattern (preferences for having less children) or a higher share of
economic active, younger people searching for a job career in urban centres. Although in some
EU countries negative growth rates of population coincide with positive trends in economy both
in urban and rural regions, in Croatia the situation is different and characterised by strong
differences regarding opportunities for economic and social development among the regions.
Overall, there is quite a striking difference between economic growth rates and growth rates of
population in rural and urban regions and/or between less prospective and more prospective
rural regions. The strong negative growth rates of population living in extreme rural regions is a
result of relative and/or absolute deterioration of living conditions for young families and an
2006. The most prominent rural woman by her personality symbolizes the value and
importance of the creative, enterprising women in the village and on the farm with the purpose
of affirmation and raising the quality of life, preserving of families, cultural heritage and
improvement of the particular position of the rural woman in the Croatian society.
Croatian Agriculture Extension Institute (CAEI) also within its programme of work with the
family farms supports and promotes role of women on the farm and in society through
cooperation with the women associations and organization of lectures, exhibitions and
manifestations. Department for the Rural Development of CAEI each year organizes and
celebrates the Rural Woman World’s Day, since the year 2000.
There is no relevant data about position of women in rural areas regarding gender equality.
3
Agricultural population are persons whose profession is classified in two groups (according to National
Classification of Professions): ”agriculture, hunting, forestry and fishery workers ” and “simple agricultural
forestry and fishery professions” and all other persons who they support
4
Active agriculture population of labour force are employees and unemployed persons classified by
economic activity in referent period
version of 14. 12. 2007; 20
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
The ageing index (1,79 in 2001) of the agricultural population is twice of the one of the rural
population. According to the farmers inscribed in the Register of Agricultural Holdings of the
MAFWM, their age structure shows that 50% of the farmers are older than 55 years and only
8% are up to 35 years old (8% = <35 year, 17% = 35<45 years, 25% = 45<55 years, 22% =
55<65 years and 28% = >65 years).
5
Institutional Capacitiy Building and Support to SAPARD/IPARD Implementation in Republic of Croatia
version of 14. 12. 2007; 22
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Common goal and main objective of these educations is preparation for better understanding
and implementation of Community standards at all levels.
According to statistical data of Hrvatske Šume Ltd., Zagreb, on forest fires, for the period from
1992 until 2005 in Croatia, in average area taken by fire was 14.300 ha per year, including
forests and also other areas (the least size of the surface areas taken by fire was in 2005 –
3.135 ha, and the most areas where the fire occurred were in 2000 – 68.171 ha). Almost 90%
of forest areas taken by fire are related to forest grown on karsts (in sub – coastal areas and on
the islands), which is very sensitive issue considering ecology aspects. Forest fires are most
dangerous in the coastal region considering the nature of karsts areas, where forests have
special treatment and also the way they are managed, concerning their general practical
functions. Occurrence of forestry fires is regular characteristic in the coastal regions, according
to conditions what have been created by nature and by men. In that areas, primary function of
forests is ecological and the second one is a social function, the least important is the economy
one, i.e. using of timber. Because of that, management of forests is not possible without state
interventions. Great part of forests management is concentrated on a protection from loosing of
land coverage, timber, degradation of agricultural soil, destruction of infrastructure and objects
for housing, and also loosing of recreational and landscape values and other. Except that,
improvement of consequences occurred by the forestry fires is representing a great load as for
the state budget so as to private sector.
It has to be emphasized that more than 60% of the forest fires occurred on a deserted
agricultural land where natural succession occurred with woody species and on unarranged
and unapproachable private forests areas, which are favourable for extension of fires and
make extinction impossible. Also, the greatest number of forest fires is still taking place on the
areas already taken by fire; there are more habitats which have been destroyed after just
recently being regenerated by nature or by men means. To increasing trend of areas taken by
fire contributes the fact that about 30% of occupied areas deserted after the war was
overgrown in a heavily unapproachable kappice and forest. These areas represent the biggest
problem of fire protection, especially considering land mines.
When taking into account conditions and site of the surface area of private forests compared
with the state forests, forests in private ownerships are in greater danger.
Acts on forest fire protection are: The Fire Protection Act (OG No. 58/93, 33/05, see page 319),
and Regulation on a Forest Fire Protection (OG No. 26/03). According to mentioned
regulations, owners and users who are dealing with all the aspects of open spaces are obliged
to maintain ‘all forest roads and pathways in the condition which enables regular access for the
fire brigades vehicles.’ On the other hand, all legal persons with the responsibility of managing
state forests and the units of local government who are managing forest owner’s possessions,
are obliged to construct a fire protection Plan.
State bodies competent for supervision of fire prevention measures are Ministry of Internal
Affairs - fire protection inspectors and MRDFWM - forest inspectors.
Financially, the most expensive and the most demanding measure of prevention is obligation of
construction and maintenance of necessary net of fire firebreaks with the elements of the forest
roads – multipurpose roads. According to Act, fire protection in the private forest fell under
liability of the local and regional authorities, and those usually do not have enough funds for all
the measures to be implemented.
Based on statistical average of area taken by fire in Croatia of 45 ha per fire (1992 – 2005),
what is considerably above average of the Mediterranean countries (average figures are, for
instance in Italy - 9 ha per fire, Spain - 9 ha per fire, Portugal - 5 ha per fire, in accordance to
UNECE6 data referring period from 1991 to 2001), it is obvious that the fire prevention system
must be modernized. The main reason for the existence of such vast areas taken by fire is the
result of the unapproachable and difficult terrain, that is, insufficient number of fire prevention
roads and cuts. All those factors prevent quick and efficient action.
The greatest number of fire occasions, and with that the greatest need for the construction of
the fire preventions roads with elements of the forest road – multipurpose roads, is in I and II
level areas of fire danger, coastal forests and those on the islands. But, because of neglected
and unapproachable terrain continental forests are also endangered. With the cultivation of
forests and with an increase of their availability due to road constructions as a result of forest
management (conversion of degrades forms of forests into more valuable forests of the high
quality, from the economy point of view), fire endangerment will be decreasing.
In the National Forest Policy and Strategy, as the most important document of the Croatian
forestry, one of the primary measures is the implementation of the support measures for fire
and civilian protection. For these purposes, the Republic of Croatia annually invests significant
funds for the fire prevention in forests. Hrvatske Šume Ltd., Zagreb, annually invests more than
13,66 million EUR for the implementation of the fire prevention measures in the state forests.
As Annex 12.18 indicates, more than two third of the rural households are not connected to
central heating systems. Investments into heating plants, which use biomass as a source of
energy, would improve this situation, an increase in the use of biomass as a source of energy
is defined by strategic activities of the National Forestry Policy and Strategy. One of the
priorities is the use of organic agricultural and forest waste as a heating source, which would
significantly improve living conditions of the rural population, as well as having positive
environment. Investments in heating plats to improve living conditions and infrastructure in rural
areas is also one of the objectives of the ROP’s in Croatia.
6
United Nations Economic Commission for Europe
version of 14. 12. 2007; 25
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Rural area, as a basic resource for development of rural tourism, is huge potential for satisfying
needs of urban population for piece and open recreational area. Rural tourism include visits to
national parks and parks of nature, and other heritage of rural areas, panoramic drives,
enjoyment in rural landscape and stay in agricultural holdings.
Tourism in agricultural holdings is well defined segment of rural tourism, which enables farmers
to extend their economic activities, and enables higher added value to final agricultural food
products.
Catering Act (N/N 138/06) and Ordinance on Catering Services on Agricultural Holdings (O/G
48/95, 47/97, 35/96, 25/99, 29/00, 196/03), stipulate provision of catering services on
agricultural holdings. Also, Act on Providing Services in Tourism (N/N 68/07) stipulates
providing of tourist services in such households. The number of registered tourist households
in Croatia is rising and it continually develops for the last ten years, since register is being kept.
Act directly defines agro tourism tourist services as rental of horses for riding, photo safari,
picking of crops, gathering of fruits and vegetables, harvesting and other services in agricultural
households.
According to data from March 2007, (source CCE) in the Republic of Croatia 352 agricultural
holdings for agro - tourist activity (TSOG) are registered with total of only 886 beds. From the
total number of registered TSOG 288 or 81 % offers food, while 207 or 59 % has tasting rooms
(wine, brandy, etc.).
Table 2-8: Distribution of TSOG, number of beds and offering by county (2007)
Bjelovar-Bilogora 2 16 2 2
Brod-Posavina 0 0 0 0
Dubrovnik - Neretva 70 23 70 70
Istria 64 253 47 35
Karlovac 0 0 0 0
Koprivnica-Križevci 6 22 5 3
Krapina-Zagorje 7 20 6 6
Lika-Senj 0 0 0 0
Međimurje 8 10 8 8
Osijek-Baranja 56 192 47 3
Požega-Slavonia 0 0 0 0
Sisak-Moslavina 8 27 7 3
Split-Dalmatia 31 12 31 16
Šibenik-Knin 21 16 21 21
Varaždin 6 6 3 5
Virovitica-Podravina 0 0 0 0
Vukovar-Srijem 2 0 2 2
Zadar 41 248 11 10
Zagreb County 30 41 28 23
According to data form Economy Department of the State Administration Office by counties, 6
counties have no registered TSOG: Brod-Posavina, Karlovac, Lika-Senj, Požega-Slavonia,
Primorje and Gorski Kotar and Virovitica-Podravina.
Statistic monitoring of this segment is at the beginning, so it can not be taken fully as a
reference. Central Bureau of Statistics of Croatia, monitors tourist movement in „agricultural
households“ only from 2004, in accordance with definitions from regulations that stipulate
issues on agrotourism households.
Rural tourism is as an activity closely related to agricultural production, rural environment, and
rural way of life. As well as being a type of tourism, it shows - in the best possible way,
traditional lifestyle and ambience. Also, it directly connects to the cultural and historical
traditions of everyday life. Rural tourism is not only based upon tradition, but is also interesting
and unique, because of the increasing value of the destination, mainly through rural hospitality,
and originality of the product. The activities which are held on an every-day basis in rural area
are not exclusively focused on tourists – who are guests and other features such as location of
accommodation and good value for money. For the visitors, rural tourism offers something
different from familiar models of tourism, whereby tourists are actively seeking a leisure
experience in rural environment with its natural and cultural features.
Considering the different trends in rural tourism, it is obvious, that a wide range of possibilities
for the development of this segment exists. First of all, in regards to typical activities, which can
be developed and offered in the Republic of Croatia to potential guests, there is linkage to
education and training, relaxation, recreation or adventure. Some of these activities are
determined by a certain time of year (seasonality), others are very suitable for developing and
extension of the season, some can be done in a couple of hours, others demand a day or two
or maybe even more. They are determined by the surrounding nature (nature-close-tourism –
cycling, walking, riding, hunting, fishing, canoeing etc.), adventure tourism (rafting or kayaking
on white water, climbing, mountain biking, paragliding), educational tourism (discovering local
gastronomy and wines, making of local souvenirs, music, painting, language-learning,
discovering of history and heritage etc.), cultural tourism (festivals and events, music, theatre,
discovering traditions of living in the countryside, cuisine, tasting of local specialties) as well as
other types of selective forms of tourism, which can develop as an individual segment or an
addition to existing tourist products in rural areas. Relatively precise data on national, county
and local level exists only for the farm tourism referring to the number of rural households or
family farms, where the hosts offer services according to the Act on Catering. Between 2000
and 2005 the registered FT units have more than doubled (see Table 2-9).
2000 151
2001 175
2002 269
2004 254
2005 310
2007 352
programmes. The type of funded projects covers all different types of the associations and their
main group activities.
Having followed the unbalanced development of parts of Croatia, in general it can be
encountered inequality in the development of civil society in individual regions. Economic
development of a certain region most certainly affects the development of civil society, but this
is not necessarily in a positive correlation.
Currently there is no comprehensive, strategically determined and operative system which
would enable civil society organizations to participate as equal partners and contribute to the
development of their local environments and regions. This equally applies to the system of
financing and the system of decision-making and development management.
It ensues from the abovementioned that an approach is necessary for sustainable development
of all Croatian regions (counties), in which all interested parties will take over responsibility and
jointly contribute to socio-economic development.
emphasise needs to be given to the initial stage of establishing LAGs7, not just in terms of
informing about the potentials with Leader, but also by supporting the process of identifying
and establishing LAGs.
The experiences from the preparation of the ‘ROP’ and from the other initiatives described
above are considered very important and useful in order to ensure a successful implementation
of the Leader approach in Croatia and in order to face the challenges of low educational level,
migration from rural areas to cities, low income and a high unemployment rate that
characterises rural areas. Issues that can not only be solved by applying the Leader approach
alone, they need to be tackled by several means. Leader is however considered an extremely
important and useful tool due to its bottom-up approach ensuring that local needs and
demands are met in a local context. The chosen strategy for the IPARD period is therefore to
focus the limited resources available on establishing LAGs and to prepare for implementation
of local development strategies by building up capacities and resources locally through
training, workshop sessions, information and promotion activities.
The actions concerning development of civil society (see Chapter 2.2.8.1) will contribute to
LEADER related activities as well.
7
LAG – Local Action Group
version of 14. 12. 2007; 30
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
in the year 2003. In the next three years there is a raise in amount of total production and also
a decrease of share in total GDP thus showing that the whole economy is forwarding much
faster than agriculture.
Table 2-10: The share of the agricultural sectors in the gross domestic product (2000-2005)
Description 2000 2001 2002 2003 2004 2005
Total GDP (million EUR) 19.989 22.173 24.457 26.246 28.376 30.950
-
Change % 11,05% 6,50% 10,63 5,93% 4,70%
%
The agricultural and fishery sectors play also an important role on the labour market as well as
source for self-employment.
According to the data obtained from CBS, for the years 2000 to 2005, there were in average
1.371.000 employed persons, 93.857 of which were employed in agriculture and fishery sector
or were owners of their own business. The share of employed persons in agriculture, fishery
and forestry in the total employment rate was 5,72%. With regard to previous years the
employment rates in the above mentioned economic activities are decreasing (since the year
2000 there is a decrease of an average of 0,75% per year). The number of individual farmers
presented in the Table 2-11 include also those farmers who are registered at the Croatian
Pension Insurance Institute.
There is an obvious raise in number of persons employed in crafts in agriculture, hunting and
forestry (993 persons in year 2000 up to 2.824 persons in year 2005). The increase by 285%
(2000 – 2005) can be explained as result of National Support Programme for Promoting Small
and Medium Entrepreneurship implementation (see Chapter 3.1.6.4.). Also the number of
individual farmers that was very high in year 2000 (83.196 persons) is decreasing at annual
rate of approximately 7,5% and it reached 62.868 persons (24,3% 2004 – 2000).
Table 2-11: Employment structure in agriculture, fishery and forestry (2000 – 2005)
2000 2001 2002 2003 2004 2005
Agriculture,
hunting and 30.900 30.400 29.300 29.395 29.396 27.522
forestry
Agriculture,
hunting and 993 1.294 2.024 2.340 2.340 2.824
forestry
active
Pension
insurance policy at the
Individual
Insurance Institute
83.196 75.772 70.171 NA 62.868 NA
with
farmers
Croatian
Persons
TOTAL NUMBER OF
8 9
EMPLOYEES IN AGRICULTURE, 118.638 111.243 105.668 36.178 99.047 34.688
FORESTRY AND FISHERY
10
% 8,85 8,25 7,78 NA 7,03 NA
When looking at the sex structure of employees Table 2-12, it can be noticed that there is an
increase in employed women in agriculture and also in general. In first half of year 2002 there
were 15,26% of all active women employed in agriculture and it was slightly below share of
men but in total figures there were 134.000 men employed in agriculture and only 103.000
women. Following year there was noticeable trend in increased share of women employed in
this sector and also decreased in employed men.
8
Without individual farmers
9
Ibid
10
NA – not available
11
Includes agriculture, forestry and fishery according to NCEA
version of 14. 12. 2007; 32
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Between 2000 and 2005, there was a significant increase of 21% in average salaries in the
agricultural sector, due to the growth of the total national economy and GDP. As presented in
the Table 2-13, the comparison of average salaries in this sector with average salaries at the
national level for the year 2005 shows that salaries in agriculture, hunting, forestry and fishery
are below (15,11% for agriculture and forestry and 23,45% for fishery). Looking on all the years
the backwardness of salaries is decreasing.
Table 2-13: Average salaries in business entities in the agriculture and food processing
industry, 2000 - 2005 (in EUR)
YEAR 2000 2001 2002 2003 2004 2005
Average income (net), all sectors (EUR) 454 483 508 538 570 598
Average income (net) from
Agriculture, hunting, forestry (EUR) 419 413 441 451 482 507
Compared with all sectors, % -7,85 -14,63 -13,15 -16,19 -15,41 -15,11
Compared with all sectors, % -34,82 -29,82 -29,17 -25,2 -26,79 -23,45
Source: CBS, 2006; Processing: MAFWM
For the production-consumption balance regarding agricultural primary products, the standard
calculation methodology of FAO is used as a basis of the calculation of the total market
consumption, self-sufficiency rates for certain agricultural products and animal feed. Self-
sufficiency assessment is a general worldwide indicator showing the level at which the
domestic production satisfies the needs of the national market.
Self-sufficiency analysis shows disadvantages of important agricultural products, especially in
case of mutton, pork, beef, milk, fruits and vegetables. The surplus is evident in case of wheat,
sugar, maize, wine end eggs.
Table 2-14: Self-sufficiency of selected agricultural and food products in percentages (2001
- 2003)
Product 2001 2002 2003 2001-2003
Poultry 99 99 100 99
Potato 96 100 85 94
Vegetables 90 91 85 89
Milk 83 87 80 83
Pork 83 80 82 82
Mutton 79 75 79 78
Barley 81 79 67 76
Beef 83 71 68 74
Olive oil 74 85 60 73
Vegetable oil 73 60 69 67
Fish 71 61 59 64
Continental fruits 63 61 65 63
Exotic fruits 24 20 14 19
In the past fourteen years there were several clearly separated periods regarding trade in
agriculture and food processing industry:
First period from 1993 until 1997 when there was a rise (111%) in trade balance, in
case of imports, but also in case of exports (85%);
Second period from 1997 until 2000 when there was a decrease in export for 30% and
in import for 44%
Third period from 2000 until 2005 when there was agina a rise (71%) again in trade
balance , in case of imports, but also in case of exports (57%).
Since the year 1994 Croatia has been a net importer of agricultural products. The picture of
economic relations has changed significantly in the last several years due to numerous signed
free trade agreements. As a result of such liberalization, the value of Croatian exports of
agricultural products is constantly rising, and the structure of exporting markets is also
changing. The most important exporting destinations are the countries of the ex Yugoslavia,
especially Bosnia and Herzegovina, EU Member States, and Japan (tuna exports since 1997),
while the most important supplying countries are as follows: Italy, Germany, Austria, Hungary
and Brazil. Traditionally, the most important export products are cigarettes, fish, chocolate and
sugar, while the most important import products are beef, fish, pork, bread, pastries and cakes,
animal feed.
Food and beverages production (million EUR) 657 703 751 813 848
12
There are no available data for year 2005
version of 14. 12. 2007; 35
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
In year 2000 average salaries in food and beverages processing industry were 2,16% below
country’s average as shown in Table 2-17 but in following years they have increased and in
year 2003 they were 1,2% above average. Processing industry in general is around 10% below
Croatia’s average salaries.
Average salary in Croatia (EUR) 454 484 508 538 570 598
Source: CBS, 2006.
According to the data obtained from CBS, the number of employed persons in the year 2004 in
the food and beverages industry totalled to 46.272. The largest share of companies and
employed persons is present in the sector of meat and meat products production, processing
and preservation, in the production of other food products, and in the beverages production
industry. The total revenue of the food, beverages and tobacco industry in the year 2004 was
3,12 billion EUR. The share of the food, beverages and tobacco industry in the year 2003
made up 3,43% of the total GDP value, i.e. 889,5 million EUR.
Table 2-18: Number of employees in food and beverage processing industry (2001 – 2004)
(legal persons)
2001 2002 2003 2004
Croatian processing industry covers 82,5% of the total industry. The most important branch of
processing industry is the food, beverages and tobacco production with 22,9%. The food,
beverages and tobacco production has the largest number of employees in comparison with
other branches of the processing industry, but the fact that it also has the highest total gross
revenues is of great importance.
Textile and textile products production 94,7 90,3 74,3 69,8 93,9
Leather and leather products production 92,0 84,6 83,0 75,8 91,3
Wood and wood products production 97,0 95,0 104,8 110,4 105,7
In the whole industry in the year 2005 a rise is evident in comparison with the year 2004,
totalling to 5,1%. In the processing industri there is a rise of 6,4% compared to the year 2004 –
a rise in food and beverages production totalling to 6,8% in the year 2005, while there was
decrease in the production of tobacco products of 4,7% in the same year.
The analyses of groups of products show following developments and tendencies:
A rise of 28,52% in the observed period was achieved by meat production, processing
and preservation industry. Fish and fish products processing and preservation had a
rising tendency until the year 2003, while the same production in the year 2004
decreased for 15,42% in comparison with the year 2000; fruits and vegetables
processing and preservation rose for 22,65%; a significant rise can be observed in fruit
juice production. There was a rise in the same period also in vegetable and animal oils
and fats production (35,68%), as well as in milk and dairy production (2,74%) and in
mill products production (8,25%). An important rise can also be observed in the group
of production of other food products (35,76%), in the same group a rise in sugar
production of 278,88% is especially highlighted. Alcoholic beverages production was
decreased for 7% in the observed period, while the production of ethyl alcohol stronger
than 80% decreased for 31,40%
There was also a rise of 6,86% in the animal feed production in the observed period.
13
TOTAL (C, D and E) – the total index of physical volume of the industrial production of the Republic of
Croatia; C – mining and extracting, D – processing industry, E – energy, gas and water supply
version of 14. 12. 2007; 37
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
The share of processing industry in import and export was approximately 90% from 2003 to
2005. In 2004 there was a significant decrease in share of processing Industry import (from
98% in 2003 to 86% in 2004) even though the total value is increasing. Also year 2005 is
showing similar results; the share of processing industry in total import is decreasing.
An improvement in the market structure is crucial, especially in the form of connections of
individual producers with market channels, for instance, through providing support to producer
associations and/or cooperative societies.
That would also contribute to the requirements of the domestic food processing industry, when
it comes to the improvement of quality, quantity standards, as well as delivery deadlines.
According to the Agricultural Census 2003, there are 448.532 family farms, utilizing 853.196 ha
of arable land and gardens, corresponding to an average farm size of 2,0 ha (see Table 2-21).
Same data shows that three quarters of all family farms are smaller than 3 ha, but cultivate only
21% of all utilised agricultural land owned by the private sector.
The main causes of inefficient agricultural production are small land areas, dislocation and far
too fragmented structure of agricultural estates, especially when it comes to family farms. The
average area of a used agricultural land in the case of farms is only 1,9 ha, while less than 5%
of the total number of family farms owns more than 10 ha of such land. Business entities use
much larger areas of the agricultural land, averaging to 159,2 ha. They are in average divided
on 17 parcels with an average size of 12 ha.
According to the Agricultural Census 2003, only 21.000 family farms had an average size of
agricultural land larger than 10 ha, as shown in Graph 2-1.
version of 14. 12. 2007; 39
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Graph 2-1: Distribution of family farms according to size of agricultural land (2003)
250.000 227434
200.000
number of holdings
150.000
112062
100.000
45732 42426
50.000
15628
525
0
<1 1 to 3 3 to 5 5 to 10 10 to 20 >20
ha
The family sector occupies approximately 80% of the totally 1.070.404 ha of agricultural land,
holds 82% of the livestock, owns 99% of all tractors, and accounts for approximately 95% of
the total workforce in agriculture (Agricultural Census 2003, CBS). A large majority of family
farms are extremely fragmentised. In average, one family household is divided into 4,4 parcels,
with an average size of 0,45 ha (see Table 2-22).
Table 2-22: Land fragmentation of family holdings and legal entities (2003)
Specification Value
As mentioned above, the fragmentation can mainly be ascribed to lax inheritance laws that do
not contain restrictions for splitting up farms between heirs, even if they thereby become
unviable. Many family farms are therefore no longer competitive, or economically viable in
medium and long-term perspectives. The owners may earn their living in other sectors, use the
homesteads as dwellings and use the land for subsistence farming. Some of these small
holdings serve as a last resort for people without sufficient pensions or other income
opportunities. Many of these farms are only producing for self-consumption and not for the
market.
Regarding agricultural companies there are 1.364 legal entities (having agriculture as their
main activity) with 217.208 ha of agricultural land, according to the Agricultural Census 2003
and an average size of 159,2 ha.
400 359
327
number of legal entities
350
300
231
250
200 175
145
150 127
100
50
0
<1 1 to 5 6 to 10 11 to 50 51 to 100 >100
ha
A significant difference between family farms and agricultural companies/legal entities, in terms
of average size and degree of fragmentation, lies in the fact that a majority of the latter (mainly
ex-agrocombinates) used the land that was consolidated through the land consolidation
schemes.
harmonize data between the two systems and ensure that they match with reality by
undertaking cadastre re-survey where necessary, and land book registration correction
and renewal in a systematic manner in selected areas of the country;
improve customer relations and service provision, as well as organize awareness
campaigns among stakeholders, aimed at supporting professionals, financial
institutions, and real property holders; and
address impediments to the operation of an efficient mortgage system
The Government Program for the implementation of integrated cadastre and registration
systems to cover the whole country will have to be phased over a period of fifteen years. The
proposed Project will cover the first five years of this comprehensive program, and will be
focused on selected urban and rural areas. The resulting selection of the priority areas in this
first five year project was mainly driven by the demand of municipalities
According to the article 5. of the Law on State Survey and the Real Property Cadastre (OG
No.16/07) the state survey and the real property cadastre activities are executed on the basis
of five-year and annual plans. Howevar, it is still under the implementation the National
Programme on State Survey and Real Estate Cadastre for the period 2001 – 2005 (henceforth
referred to as the Programme) based on the old State Survey and Real Estate Cadastre Act
(OG No. 128/99). This Programme defines the affairs and tasks under the scope of the State
Geodetic Administration, and the areas in which these will be performed. The aim is to
establish precise, reliable and up-to-date cadastral records based on the real situation. They
would be coordinated with land books for the fixed locations with the aim of ensuring legal
safety of the real estate ownership. The programme was implemented through four sub-
programmes representing complete legal, technological, organizational and financial units.
Sub-programme A) encompasses affairs and tasks related to the creation of the real-estate
cadastre for the agricultural land which is of special interest to Croatia. The project envisages
organization of records for the area of 25.000 ha of agricultural land and it is still under
implementation. The implementation of this Sub-programme will enable the realization of
several aims:
The process of harmonization between cadastral and land book records and the real
situation on the field;
The improvement of the cadastral and land book records with the aim of creating real
estate cadastre;
Enabling the disposal, especially the selling, of state-owned agricultural land
Improvement of water goods;
Improvement of road infrastructure;
Support to the tax evaluation and value of the land (new land classification following
the survey);
Creation of legal safety of real estate ownership.
Table 2-23: Disposal of state-owned agricultural land in the period 1994 - 2007 (in ha)
Some of the lease agreements have been cancelled, or have expired. As a consequence,
agricultural land is subject to disposal according to the Agricultural Land Act.
The Government of Croatia has recognised the urgent need of firm actions to improve the
competitiveness of the agricultural sector, not least in the light of the upcoming accession to
EU. The adverse Croatian farm structure is one of the areas that need to be addressed
immediately and with a long-ranging vision. Land consolidation was consequently selected for
development cooperation between the Governments of Sweden and Croatia and resulted in a
three-year co-financed Land Consolidation project.
The overall objective of the project is to contribute to the development of a competitive
agricultural sector and sustainable rural development in Croatia by:
Designing and developing the necessary legal, organisational and technical framework
for the implementation of land consolidation and land banking,
Improving the participatory capacity in decision-making processes of relevant interest
groups at national, regional and local levels.
Project components are:
Implementation of five land consolidation pilot projects in the town of Novi Vinodolski/
municipality of Vinodolska, the town of Vrbovec, the municipality of Tompojevci, the
municipality of Vidovec and the municipality of Krašić,
Establishment of the Agricultural Land Agency and Land Fund, as a support to the land
consolidation pilot project activities on selected locations, and broader,
Establishment of the organisational structures to facilitate the project objectives as follows:
The National Land Committee (NLC), supported by the Project Coordinating Unit
(PCU),
The County Land Committees (CLCs), supported by the County Land Offices (CLOs)
in the counties of Primorje – Gorski Kotar, Zagreb county, Varaždin and Vukovar -
Srijem,
Improvement of the efficiency of the agricultural land market by removing existing
barriers,
Implementation of the training and promotion activities.
version of 14. 12. 2007; 43
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Implementation of five pilot projects is essential in the process of designing the national
land consolidation and farm restructuring policy.
In 2001, the new Act on Agricultural Land (OG 66/01, 87/02, 48/05 and 90/05) was adopted
and later amended on several occasions in the period 2001 – 2005. According to the new
Agricultural Land Act in force, local self-government units have to prepare programmes for the
disposal of the state-owned agricultural land under their jurisdiction. If they fail to do so,
regional self-government units should prepare programmes for the state-owned land within
their territory. Based on cadastral maps and records, such programmes have to contain
information on the areas allocated for restitution, selling, concession, leasing and other uses.
Disposal of state-owned agricultural land is a slow and insufficiently developed process. The
obstacles hindering the improvement of efficiency of the state-owned agricultural land market
are following:
Land book and cadastre records on state-owned agricultural land do not correspond to
the real situation on the ground, which is a significant problem in the preparation of the
Programme for the disposal of state-owned agricultural land. It also prevents the sale
of state-owned agricultural land;
Lack of well-trained local and regional self-government staff that would be responsible
for the disposal of state-owned agricultural land, and that would work efficiently;
Lack of complete database of the disposal of state-owned agricultural land, which
makes the figures at the disposal to MAFWM questionable;
Over-bureaucratic procedures of the disposal of state-owned agricultural land.
The slow process of the disposal of state owned agricultural land is one of the causes for the
existence of large areas of uncultivated state-owned agricultural land. Similarly, the process of
disposal of state-owned agricultural land, which was consolidated though the processes of land
consolidation, causes re-parcelling and fragmentation. Still, family farmers have a unique
opportunity for enlarging and consolidating their land and, thus, creating a basis for making
their agricultural produces competitive on the EU market. The existence of state-owned
agricultural land is extremely important for the Land Consolidation Pilot Project because it will
constitute a major land reserve that can be part of the Land Fund.
14
International Federation of Organic Agriculture Movements
version of 14. 12. 2007; 44
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
farmers has also been established. There are six registered supervisory stations and two legal
persons for the implementation of the certification procedure. As regards the fact that this kind
of production is still relatively new, areas used for organic agriculture are still not significant in
quantity, but do show a rising trend. Organic production receives 30% higher subsidy amounts
than convectional production (Support system for organic production is given in chapter 3.1.1)
- vegetables 4 12 38 79 69 98
- herbs 2 6 8 11 15 15
- orchards 1 6 25 30 54 85
- vineyards 0 4 4 25 29 30
- Olive trees 0 0 0 2 12 27
Forest (ha) 0 3 13 50 46 60
Raised public awareness, market possibilities and organic agriculture incentives which
significantly outbalance the conventional agriculture incentives can speed up the growth and
the development of the organic agriculture. The development strategy of the organic agriculture
has been drafted within the FAO project «Diverse production and certification in agricultural
systems positively oriented towards the environment» (TCP/CRO 2902(A)). According to the
development objectives of the strategy, until the year 2010 approximately 10% of the total
agricultural production should relate to organic production. A large potential for organic
production lies in the areas of and around national parks, protected natural areas and natural
grasslands.
2.3.3.5. Irrigation
The Republic of Croatia, regardless of its natural potential (soil quality, water resources), is
placed almost on the bottom of the scale concerning land irrigation (around 9.000 ha) in
Europe. The non-competitiveness of the today’s agriculture is a consequence of a low
production technology level, high fragmentation level of the agricultural land, low number of
facilities, low maintenance of the melioration system and low yield. Furthermore, frequent
draughts (on average every third to fifth year) cause billions of HRK of damages in agriculture.
Irrigation is one of the measures that may reduce and even completely prevent draught
damages in certain areas.
In Croatia only 9.000 ha are irrigated although there are irrigation potentials for even 600.000
ha. After Albania, Croatia is the country in which the least part of arable land is irrigated, thus
ranking far behind other transitional countries (see Chapter 3.1.5.7)
The lack of a proper irrigation system in Croatia is not a result of insufficient water springs,
insufficient infrastructure or irrigation equipment maintenance. Such a situation is partially
result of the changes in ownership structures, consequence of the war, and result of changes
in agricultural water resource management. The state used to implement a credit programme
for the purchase of irrigation equipment intended for use on farms, but the programme turned
out to be unsuccessful, since the farmers showed no interest in applying for the credit due to
poorly developed basic irrigation infrastructure. In the year 2004 the State programme for
irrigation, agricultural land and water resources management commenced in Croatia. The main
plan has also been prepared which is going to be fully implemented in the year 2006. One of its
main objectives of the State Programme for irrigation is the development and improvement of
the irrigation infrastructure systems.
The lack of a proper irrigation system has particularly negative influence on the sector of fruits
and vegetables production which is evident from the poor quality of such products.
The consequences of the lack of irrigation use are catastrophic as regards the peasants, but
also as regards the economy as a whole; especially in the years 2000 and 2003 when due to
severe draughts the majority of the counties suffered immense damage in agricultural
production (see also Chapter 3.1.5.8.).
Table 2-25: Changes in number of cattle and breeding cows/heifers (1991 - 2005)
Cattle Breeding cows and heifers
Year
Number % Number %
The figures indicate that the adverse trend has come to a halt in 2003, even though only in the
beef sector a considerable increase in the number of cattle can be stated caused by a
substantial importation of calves for fattening. In 2004, the cattle stock accounted only for
62,2% (cattle), 57,5% (breeding cows and heifers) of the stock in the pre-war period (1991).
Despite the decrease of cow number the production of fresh milk is growing in the period
observed. Milk production is shown in the following table.
Since 2002 the purchase of milk is being monitored on the basis of the data of the Central
Bureau of Statistics and Central Milk Laboratory of the CLC. The overview in Table 2-26 on
changes in the milk production sector between 1990 and 2002 does not include the quantities
of raw milk used for calf-feeding and those for human nutrition on the farm. From 2002, when in
the presentation of total milk production are used data of Central Milk Laboratory, milk
quantities used for nutrition of calves and people (farmers) on the farm are also taken into
consideration.
It is clear from the table that during the entire period the production has been growing in total
by 20,8%, the average production per cow has increased by 132,1%, as well as the purchase
of milk by dairy plants in particular by 77,0%. In 2005, the Croatian dairy farmers sold 56,4% of
their estimated total raw milk production to processing plants as compared to only 38,5% in
1990.
It is relevant to stress that the structure of milk purchase by dairy plants is changing in the
sense that the share of producers who supply small quantities of milk is decreasing, while the
share of those who supply larger quantities is increasing.
If the structure of producers who sell their milk to dairy processing plants is examined
according to different production classes over a three-year period (2003 - 2005), a total
decrease of 24,3% in the number of producers can be noted (see Table 2-27).
Table 2-27: Changes in the number of producers as to the volume of annual production
(2003 - 2005)
2003 2004 2005
Production classes
(liters/ year) Number of Number of Number of
% % %
producers producers producers
Classes with the lowest production in the period examined decrease as expected by 18,29%,
while the share of classes with higher production is increasing by 193,75%.
If delivery of raw milk to dairies is observed sequentially during three years (2003 - 2005)
according to the production classes, there may also be seen positive trends as it is visible from
the Table 2-28.
Table 2-28: Overview of the purchased milk quantities according to quantity classes (2003 -
2005)
2003 2004 2005
It is visible from the table that the delivery of milk is increasing in the period observed (in 2003,
it was 525.028.769 litres; in 2005, it was 605.721.367 litres). If the share of delivered milk
concerning production classes is observed, it is visible that delivered quantities decrease in
lower classes during the period. In the smallest class where the delivery of milk is less than
6.000 litres the share in delivered quantity was in 2003, 17,08% and in the year of 2005 only
9,93%.
On the other hand the share of delivery in the class above 100.000 litres of milk, has increased
in the observed period from 11,86% to 20,29%.
This positive trend of increase of milk delivery from bigger farms, represent good basis for
preparing such farmers for increased competitiveness which is very important upon accession
of Croatia to the European Union. This could also be explained as a result of the
implementation of Operative programme for the livestock production (see page 181). In the
period 2004 – 2007 there were new 83 dairy farms constructed (average size 50 dairy cows)
with total value of investment of 22,4 million EUR.
Producers
Today milk production is mainly based on mixed small production units, which produce also
beef by using mostly combined breeds (Simmental and Brown). Holstein dairy cows are used
in specialized milk production systems.
Milk production is growing because of the better management on farms and better herd genetic
basis which is a result of genetic construction, i.e. by implementing of own breeding program.
Besides that, after the war a significant number of breeding heifers from other populations have
been imported.
According to the CLC, there are 44.560 of milk suppliers out of which 96% has less than 15
milk cows. They apply low levels of milking technologies, which cause also a low level of raw
milk production in terms of quantity and quality. These conditions impede not only a higher milk
production per cow, but also the competitiveness of the milk production sector since the
environmental and hygiene standards, as well as good animal-keeping conditions cannot
satisfactorily been met.
Out of total milk suppliers, 4% keep more than 15 milk cows which makes 20% of total milk
cows in Croatia.
Farm structure is unevenly distributed concerning their size. Bigger farms are in the north and
east part of the Republic of Croatia what is because of better conditions for cattle production.
Table 2-29 shows an uneven geographical distribution of milk production in the Republic of
Croatia. The milk production is traditionally located in the northern continental part, in which the
natural conditions are also most favourable and bigger production structure prevails than in the
Mediterranean and southern parts. In the Counties Bjelovar - Bilogora and Koprivnica - Križevci
which are located in north part of Croatia, particular the milk production occurs exclusively on
family farms, while in the East Slavonia region (Osijek - Baranja and Vukovar - Srijem county)
also large farms owned by legal entities are present beside the family-owned farms. Such
farms with hundreds of dairy cows are units in which the milk production level per cow is high.
Average annual production of milk per cow in Osijek - Baranja county had in the year of 2005,
at big farms 6.289 litres while on the smaller family farms was 3.458 litres. On big farms has
been already given special attention to compliance with ecological standards, hygienic and
health conditions of production and animal welfare. These conditions have to be completely
fulfilled also by smaller family farms. With appropriate legal regulations shall be ensured
favourable material assumptions of their realization.
Looking at the structure of milk producers and number of milk cows according to data obtained
from CLC out of 44.560 milk suppliers there are 1.950 producers with more than 15 milk cows
and only 14 of them have more than 100 cows. The distribution of producers larger than 15
cows is shown in following graph.
1200
1000
800
600
400
200
0
15 to 20 21 to 50 51 to 80 81 to 100 > 100
Processing industry
Milk processing in the Republic of Croatia occurs in dairy plants authorized for milk processing
and entered into the appropriate register kept by the Ministry of Agriculture, Fisheries and Rural
Development.
In 2005, there were 37 dairy plants for processing of cow milk with different processing
capacity (see Table 2-30). The existing production facilities are sufficient for the processing of
the quantity of milk supplied and imported.
There are two milk factories that are large according to Croatian standards (they are
processing over 64% of total processed milk), which were established in earlier period, before
1990s. They implement modern production technology in compliance with Community
standards and there is no need to support modernization of such large plants.
There is a number of middle sized dairy factories, that should be included into the system of
quality, recognisable milk products, with the capacity in range of 1.800.000 – 50.000.000 litres
per year. These milk factories don't comply with all the conditions, especially those related to
quality and hygiene standards. One of the main purpose of IPARD is to help this specific group
of Croatian dairy sector to do the necessary investment to upgrade to Community standards.
Out of 37 dairies, 10 purchase and process sheep and goat milk as well.
In 2005 in Croatia were in total 10 of dairies which purchased from 411 producers and
processed 1.808.478 litres of sheep milk, and 10 dairies which purchased from 311 producers
and processed 3.823.024 litres of goat milk (Source: CLC, 2007).
Table 2-31: Volume and structure of the most important dairy products manufactured in
dairy plants (2002 - 2005, in tons)
Year
Type of dairy product
2002 2003 2004 2005
Table 2-31 shows that the volume of processed milk and dairy products has increased during
the examined period, which is understandable since also the purchase of milk has increased in
the given period.
Upon sale of the fresh milk its quality is determined according to the Ordinance on the quality
of the fresh raw milk (OG No 102/00), which has been entirely harmonised with the rules valid
in the European Union. The quality control of the fresh raw milk is carried out in the Central
Milk Laboratory, which has been internationally recognised on the basis of the standard HRN
EN ISO/IEC 17025:2004.
In the Republic of Croatia the purchasing price of milk is based on the quality, upon which the
proportion of milk fat and proteins, as well as the number of somatic cells and micro organisms
are taken into account. Provisions regarding the manner of payment for milk are contained in
the government Regulation on the aimed price of fresh raw milk (OG No 102/00). On the basis
of its quality milk is divided into four classes. According to the minimal quality requirements,
milk has to contain at least 3,7% of milk fat, more than 3,2% of proteins and not more than
100.000 micro organisms and 400.000 somatic cells in one millilitre.
Due to such conditions and the manner of testing the quality of milk has improved significantly
in the past years. The share of single classes of milk in the past three years is shown in the
following table.
Milk belonging to classes E and I matches entirely the standards of the European Union
regarding the number of micro organisms (100.000) and somatic cells (400.000). However, that
data show that improvements are made but 50,7% of raw milk supplied is still not in
compliance with the EU minimum standard quality conditions, which therefore requires
additional efforts in order to improve its quality even further.
Trade exchange of milk and milk products takes place in the part of export and import. The
Republic of Croatia is still a country that has to import milk and milk products to satisfy the
needs of its inhabitants for milk products.
Table 2-33: Import and export of milk and milk products (2003 - 2005, in tons)
Type of IMPORT EXPORT
dairy
product 2003 2004 2005 2003 2004 2005
Other fresh
dairy 4.806 3.045 2.476 10.240 12.181 14.511
products
Milk
136.263 186.551 135.196 49.164 71.303 74.486
equivalent
It is visible from the Table 2-33 that import of milk and milk products has the tendency of
decreasing, while their export is increasing for the last several years. As today in Croatia is
carried the restructuring of beef breeding, it may be concluded that this positive trends will
continue.
The import of milk products and especially of cheese is emphasized because of the lower price
which may be achieved on the world market that significantly makes harder the
competitiveness of domestic production of product.
By restructuring the milk production system through the establishment of new or the adaptation
of existing farms, all provisions prescribed (minimum environmental, animal keeping and
hygiene standards) by the European Union shall be implemented, in particular those referring
to the protection of the environment, animal welfare and the sanitary purity of milk.
In this sense the Regulation on conditions with which farms must comply and conditions for the
protection of farm animals (OG No 136/05) prescribes the requirements that must be met upon
establishment of new farms and at the existing facilities for keeping animals.
A regulation regarding market organisation (CMO) for milk production is in preparation, while
the system of quotas and the manner of distributing the financial support for milk production
shall be adjusted in the following period.
Overview of state aid for milk and dairy sub sector is given in Chapter 2.1.
1.800
Pigs total (’000 heads)
1.600 Sows and gilts (‘000 heads)
number of pigs (sows) in '000
1.400
1.200
1.000
800
600
400
200
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
From the above graph, fluctuation in production must be noticed due to well known
characteristic of pig cycles in production, respectively periodic unbalance between supply and
demand of pig meat on the market.
In most cases, pigs are kept in inadequate objects (poor stable), where poor genetic potential
of the animals is utilized on a very low level. Pigs are predominantly kept on a traditional way,
as the greatest number of animals is situated in inadequate objects (poor stable), where is not
possible to organize efficient production.
Existing productions systems, excluding part of a large farm, do not comply with conditions of
competitiveness on the open market, and they are often questionable regarding environment
conditions and animal welfare.
Producers
Pursuant to the Agricultural Census 2003, there are 215.240 holdings with pigs:
• 214.814 agricultural family holdings which have 1.726.895 pigs
• 426 legal entities which have 197.777 pigs (see Table 2-34).
The average size of family holdings with pigs, or the average number of pigs per family holding,
pursuant to the abovementioned data was 8 pigs, while the average number of pigs per legal
entity was 464 (see Table 2-34).
In the producers structure the biggest limitation is the fact that 90% of production is
represented by about 200.000 small producers. Less than 3.300 (1,5%) producers on family
farms have more than 50.000 pigs. About 12.500 have 20 - 50 heads and out of this category
of family farms it can be expected to grow up into commercial producers to some extent. From
the category of family farms with 11 - 20 pigs can be divided farms ready to participate in
commercial production, while the majority of more than 170.000 farms with less than 10 pigs
are out of commercial production.
As mentioned above, in the structure of pig production family holdings prevail with 90% of total
production. However, they represent small production units with production for their own needs.
Only 1,5% of family holdings has production capacities over 50 pigs (see Graph 2-5).
80.000 72.855
70.748
70.000
60.000
# of holdings
50.000
40.000
30.239
30.000 25.260
20.000 12.430
10.000 3.282
0
1 to 2 3 to 5 6 to 10 11 to 20 21 to 50 >50
# of pigs
Total production of legal entities is only 10%, likewise with mainly smaller production units
(69,7% has production capacities up to 50 pigs) and only 9,2% has more than 400 pigs (see
Graph 2-6).
Graph 2-6: Structure of legal entities according to the number of pigs (2003)
180 160
160
140
120
# of entities
100 84
80
53
60
40 32 30 28
16 23
20
0
1 to 5 6 to 10 11 to 50 51 to 100 101 to 201 to 401 to >1000
200 400 1000
# of pigs
The Central Union of Associations of Pig Farmers of Croatia has been operating since
September 2004. The founders of the Union are 12 associations of pig farmers from 11
Croatian counties. Pursuant to data from December 2005, the Union encompasses
version of 14. 12. 2007; 57
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
approximately 1.000 family farms, who among other types of production have production or
fattening of pigs. The aim of the Union is to improve the conditions of pig farming production on
family farms, by obtaining financial means for construction of modern farms, and to raise the
level and quality of domestic production of pig meat through education.
In the beginning of 60's, the livestock producers (for pigs, beef and poultry), whose production
was taking place in agricultural companies, have founded a business community for livestock –
the Economical Interest Association „Croatiastočar“ – through which they have expressed and
protected their interests. The representatives of associations of family farms gathered within
the Central Union of Associations of Pig Farmers of Croatia participate in the work of EIA
„Croatiastočar“.
Currently EIA „Croatiastočar“ gathers 30 large producers, companies which have in average
annual production of approximately 18.000 pigs for fattening and 1.000 sows.
EIA „Croatiastočar“, jointly with the Central Union of Associations of Pig Farmers of Croatia
actively cooperates with the MAFRD in creating, proposing and implementing measures of
agricultural policy in the sector, in producing developmental programs, drafting legal acts
referring to the sector, informing the Ministry about the problems in the sector, etc.
Processing industry
Production of pig meat in the period from 2000 to 2005 has shown an increase of production of
fresh pig meat, in almost all meat categories (see Table 2-35 also chapter 2.3.4.5).
Table 2-35: Trends in pig meat processing industry (1997 - 2005) in tons
2000 2001 2002 2003 2004 2005
summer season due to tourism industry which contributes to price increasing and stabilization
of domestic market; especially in years when due to pig’s cycle domestic supply of pig meat
tends to be greater than demand.
Imports:
Exports:
15
Cwe – carcase weight equivalent
version of 14. 12. 2007; 59
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
The CBS has been conducting a Survey on the Household Consumption since 1998, on a
representative sample, pursuant to the methodology recommended by the European Union
and international standards and classification. The abovementioned Survey collects data on
personal consumption, or the consumption of food products and drinks in households.
Pursuant to the data from the Survey, the consumption of pig meat prepared for household
consumption, has risen in the period from 1999 to 2003 for 15%, and in 2003 it was 18,14 kg
per household member (see Graph 2-7).
Graph 2-7: Consumption of pig meat per household member (1999 - 2004)
20 18,14
17,61
18 16,44
15,74
16 14,5 14,66
Consumption in kg
14
12
10
8
6
4
2
0
1999 2000 2001 2002 2003 2004
Year
According to the data from the production and consumption balance sheet, total available
gross amount of pig meat for consumption is 32 - 33 kg per inhabitant. However, from the
available abovementioned amount, one part goes to industrial processing while the other is
consumed fresh in households.
The majority of trade with live pigs in the Republic of Croatia still is conducted directly at the
agricultural holdings. However, a significant part of trade is conducted at live markets where
consumers (farmers, butcher shops, smaller meat processing trades and companies) directly
purchase pigs from the producers. Live markets are owned by regional and local self
government and function as public enterprises.
Slaughterhouses are privately owned and are most often organized within the meat processing
industry which perform slaughter of livestock for their own needs, but also provide slaughter
services. Only a smaller number of slaughterhouses performs exclusively service slaughtering.
Establishing of the system for collection and analysis of data according to criteria of production
capacity of individual slaughterhouse, in regards to the type of the animal or their importance is
currently in progress (see Chapter Meat processing industry ).
Net weight, kg 76 80 79
Great percentage of pigs is slaughtered directly on family farms for personal needs. According
to the data from the CBS, the slaughtering of pigs on family farms was between 50 - 60% of
total slaughtering of pigs in the period from 2002 to 2004.
Large trade chains have a growing significance in the supply of citizens with fresh meat, and
are becoming, next to butcher shops, one of the most important chains of distribution of pig
meat to the final consumer.
Agricultural producers, pig breeders are signing production contracts to a lesser extent with the
slaughtering or meat processing industry, and even if they are signed they are mainly short-
term contracts (related to production shifts). Meat industries sign contracts with the trade
chains, but they are mostly not of a long-term nature. As more significant producers of pigs for
fattening are the meat industries themselves, which have within their scope of work facilities for
fattening. There is also a growing share of cooperative associations, or providing services of
fattening for business entities in the market.
Table 2-38: Overview of the foreign trade exchange of pigs, pig meat and products (in tones)
2000 2001 2002 2003 2004 2005
Pig meat,
fresh,
15.229 17.868 23.225 23.449 29.372 38.121
chilled and
frozen
Pig
slaughtere
d products,
999 976 1.987 1.702 1.128 1.385
fresh,
chilled and
IMPORT frozen
Pig bacon
1.777 2.037 2.442 2.932 2.844 3.705
and fat
Pig meat,
salted, in
brine, 685 930 1.095 1.539 1.795 1.926
dried and
smoked
Other pig
meat 768 643 1129 1218 1.061 1.289
products
Pigs 3 - 2 - 63 45
Pig meat,
fresh,
56 - 146 12 222 155
chilled and
frozen
Pig
slaughtere
d products,
- 10 55 123 13 74
fresh,
chilled and
EXPORT
frozen
Pig bacon
194 10 - 5 15 37
and fat
Pig meat,
salted, in
brine, 94 48 9 181 195 123
dried and
smoked
products
Because of pig shortages import of live pigs and pig meat was considerably increased in 2000
and 2005 (see Table 2-38). In the observed period, there was an increased import of the pigs
amounting up to 10.784 in 2005.
Insignificant quantities of pigs and pig meat are exported from Croatia.
Insufficient production was replaced by import, which is additionally being limited by forbidden
pig import in the Republic of Croatia because of pig disease outbreak (bluetongue, foot – and –
mouth disease and classical fever). Continuous pig prices oscillations and also the conditions
of conducting business by producers, processors and organization of transport is the main
cause for oscillations in pig production.
One of the mechanisms of the trade and price policy in the Republic of Croatia is regarding to
custom protection. The basic rate of customs (custom duty on the most privileged basis) for live
pigs, as well as pig meat has reached its obligatory level in accordance with the WTO
requirements arising from Croatia’s accession to that organization. Transitional period for
achieving final required WTO levels of custom duties for frozen pig meat shall expire in year
2007.
In 2005 basic custom rate for live pigs varied from 0% (for full – blooded breed animals and
piglets) up to 40% (custom rate expressed in “ad valorem” equivalent) for the rest of the live
pigs.
Custom rates for pig meat were ranged between 23% and 35% (custom expressed in ad
valorem equivalent).
After expiring above mentioned transition period, the Republic of Croatia is no more obliged to
decrease customs, except if agreed differently on a multilateral level agreement, for which
negotiations are ongoing, according to the WTO Agreement on Agriculture on further world
trade liberalizations and lowering of domestic support.
Except the custom rates, there are preferential custom rates (for unlimited quantities or
quantities in the form of custom quotas) agreed in the frame of bilateral agreements of free
trade and in the frame of the Stabilization and Association Agreement (SAA) with the EU.In the
case of disturbance on a domestic market, Government of the Republic of Croatia can
intervene by lowering of existing customs or with their increase, but only in the framework of
international agreements.
An overview of the state aid schemes for pig sub sector is given in Chapter 2.2.
Other
0,45 0,48 0,51 n.a. 0,53 0,99
(1+2+3+4+5+6+7)
The national herd declined in size from 882.000 of heads in 1987 to the lowest 417.000 in 2002
(see Table 2-40). Significant contribution to this trend was the war during which a lot of cattle
was lost (killed, stolen, etc.). Due to destroying of war (1991-1995) the number of cattle in the
Republic of Croatia in this period has been significantly reduced (for 34,7%), and the
downward trend continued until 2002, but afterwards has shown slight, but continuous growth.
In 2005, the total number of cattle compared to 2004 increased by 1%, and compared with
2001 by 7,5%.
Table 2-40: Evolution of the number of cattle ('000 heads, 1987 - 2005)
Cows and Bulls for
Total Calves ≤ Cattle > 1
Year heifers in reproduction and
cattle 1 year year
calf steers
In the structure of cattle categories, the most represented are cows and heifers with 58%,
which contributes to the milk production and increase of cattle fund. In practice is registered the
high excluded dairy heads that end in meat production (Holstein before all). Due to a lack of
domestic calves, considerable share of fattening calves is from imported heads. Unlikely the
dairy production, the system of cattle production is not comprised within the purchase network,
which does not ensure such a high level of purchase as in the case of milk.
Producers
According to the Agricultural Census 2003, there were 86.269 of agricultural holdings with
cattle out of which 85.930 (99,6%) were family holdings and 339 (0,4%) were legal entities. In
terms of numbers of cattle livestock, the production evolves at small and fragmented family
holdings.
50000
43365
40000
# of holdings
30000
22778
20000
11650
10000
4055
1797 2285
0
1 to 2 3 to 5 6 to 10 11 to 15 16 to 20 >20
# of cows
It is visible that a majority of family farms (90,26%) keep less than 10 cattle, and only 9,74%
more than 10.
In order to change this unfavourable structure, Operational Programme for the Development of
Livestock Production secures conditions for the establishment of new modern farms with the
capacity of up to 100 cows. With the possibility of reaching higher competitiveness, such
production units create a basis for meeting conditions set both in regard of environment as well
as animal welfare. It is necessary to emphasise that some farmers will continue keeping a
small number of animals on the farm.
Specialized cattle breeding farms are not yet developed at a large scale. One third (32,4%) of
the legal entities have up to 20 cows and two third (67,6%) of total 339 producers keep more
than 20 cattle out of which 25,4% or 86 have more than 100 cattle (see Graph 2-9).
Therefore, in order to increase economic viability and compliance with Community standards
(hygiene, animal welfare, manure management and other environmental issues) there is a
need for restructuration of family holdings, by increasing the number of producers specialized
on cattle breeding.
Graph 2-9: Distribution of legal entities according to the number of cattle (2003)
100 86
80 75
69
# of entities
60
35 38 36
40
20
0
<10 11 to 20 21 to 30 31 to 50 51 to 100 >100
# of cows
Processing industry
Number of total slaughtered cattle showed growth in 2004, by 13% in comparison to the
previous year, where increase in number of slaughtered cows was the highest (see Table
2-41).
The statistically registered number of slaughtered beef is significantly lower than the real one.
According to CBS data, self sufficiency of beef would be only 37,5%, with consumption of
about 6 kg per capita per year, which is not proportional with consumption according to the
Questionnaire of household consumption, made by CBS (see Table 2-42). Expert analysis
conducted by MAFRD, shows that self sufficiency of beef is at 76,5% (2002 - 2004 average),
with aggregate consumption of 60.000 – 65.000 t of beef (around 12 kg per capita).
As can be seen in Table 2-43, meat production remains unchanged throughout the observed
period (2000 - 2005). It is especially relevant for the production of veal which doesn't have a
clear trend: veal production is on the rise or decline depending on the price of calves. On the
other hand, beef production has no similar trend. There is an increase in production during the
observed period.
Table 2-43: Production of certain products and processed products of beef (2000 - 2005 in
tons)
2000 2001 2002 2003 2004 2005
From Table 2-43 it can be seen that production of certain processed products in 2005 has
increased (i.e. fresh or chilled beef, whole and halves, front or back quarters for 50,8%
compared to 2004) while production of some other processed products in 2005 has decreased
(i.e. fresh or chilled beef, in parts for 22,8%) which can lead to an conclusion of certain degree
of diversification in terms of market trends.
Net production
Import
16
Quantities consumed in private house holdings – year average per family member
version of 14. 12. 2007; 66
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Export
Most of the trade of live fatten beef runs on agricultural holdings. Very small part of the trade is
done on cattle fairs. Regarding calves (80 - 160 kg), they are sold on cattle fairs, buying
stations, and in smaller share on agricultural holdings. Cows are sold on cattle fairs or directly
to the slaughter houses.
On cattle fairs cattle are mostly bought for own needs, most often by buyers who have smaller
processing plants (slaughter houses). On buying stations cattle is also bought for own needs
(fattening farms) or for the meat processing industry needs. On the Croatian market, most of
the cattle is bought based on the live weight, not based on the carcasses quality.
Regulation of quality of beef carcasses and halves on the slaughter line (OG No. 20/04), has
been applied from 1 September 2004. The classification procedure itself may be carried out by
legal persons authorized by the MAFRD for this activity. Conditions which must be fulfilled by
legal persons to be authorized to carry out this activity are further stipulated by means of the
Regulation.
Market Information System - TISUP, which operates within MAFRD, collects prices of different
categories of live cattle (from cattle fairs, buying stations and farms, auction prices of heifers),
gross and retail market prices of meat and processed meat, processes them and distributes.
Prices of live cattle are collected on almost all cattle fairs and buying stations (70 – 80%), and
also from fattening farms mainly owned by family holdings. These are producer prices, without
transport costs included.
Gross market prices (excl. VAT) are collected from all bigger meat industries in Croatia. Retail
market prices (including VAT) are collected from butcher’s shops in 15 bigger Croatian cities .
Heifer "Simmental", for slaughtering 1,74 1,56 1,86 1,67 1,56 1,84
Cow "Simmental", for slaughter 1,03 1,00 1,21 1,02 0,84 0,97
Calves of Holstein-Friesian breed have limited value for production of beef, therefore their price
is lower compared to Simmental calves (see Table 2-46).
An overview of state aid schemes for beef sub sector is given in Chapter 2.1.
such flock is low. Eggs produced on such way are mostly used for the farmer’s consumption,
and only during the time of the greater laying production surpluses, eggs are placed on the city
market, with the certificate of their health condition included.
Regarding such organization of egg production in Croatia, it is clear that the greater
investments are to be expected in the industrial capacities. Egg production on the family farms
is expected to be marginal activity, intended above all, for the production for own needs. It is
also necessary to put emphasis on the small number of family farms specialized for this kind of
production, applying modern way of production like the great production systems.
Other - - 299.517
From the Table 2-47 it is obvious that in the poultry farming in Croatia hens and turkeys are
dominant, while the share of other poultry (ducks, gooses and others) is of lower importance.
Regarding number of layers for the egg production, in that segment are no significant
differences as well.
In the intensive industrial conditions, hybrid lines are used for the egg production and they are
also used on the most of the family farms. Using of pure breeds is almost insignificant and in
the breeding and production sense is of no importance.
Today, the egg production mostly satisfies the needs of the domestic population, although
there is a need to emphasize that international trade of this product is also present. Balance of
eggs production is specified in the following table.
Export 704
Import 1.445
- laying 3.442
From the Table 2-48 it is visible that the greatest part in egg consumption is supplied from the
domestic production. That is comprehensible if one takes into account that intensive production
is organized for the market while family farms also produce significant quantities of eggs for
own needs.
Eggs productivity depends on a production system and it is on different levels; in the large
specialized production units high laying scores are achieved, while regarding production on
family farms it is significantly lower (31,13% of total consumption eggs produced), what is
visible from the following table.
Producers
Although the poultry production is organized in a specialized production units (intensive
production), it is also organized in the family farm conditions where poultry is usually kept in the
extensive conditions of a free range breeding. Most of the poultry producers are farmers.
As shown in Table 2-50, the share of large production units in respect to the total number of
producers is almost insignificant (0,14%), compared to the number of family farms engaged in
poultry production. In the Table 2-51, structure of farms and the number of animals is specified.
Most of the production units are located on farms with free range conditions, with a relatively
small number of poultry per unit. The minimum capacity for the viability of the family farm is
around 2.000 laying hens (in cages) according to calculations of Faculty of Agriculture
(University of Zagreb)
Table 2-51: Structure of ownership and the number of poultry for the production of meat and
eggs, according to farm size
Size of a Producers (family farms and legal
Animals
producers in entities)
accordance to
the number of
Number Share % Number Share %
poultry
In Croatia the following hybrid lines are used in the intensive production: for the production of
eggs – light lines, for the meat production – heavy lines. On family farms and in extensive
production, the same hybrid lines are used, and in the smaller extent pure breeds and cross –
breeds of pure breeds and hybrids.
Regarding intensive production, poultry intended for the egg production is kept mostly in the
cages and in a smaller extent on a litter, while in extensive production poultry is kept mostly
free and in the open space.
The greatest part of the laying hens is kept in cages (44%), especially in intensive production
(see Table 2-52). Poultry is kept in the cages which do not comply with the present conditions
because the most of such farms were built in the earlier period when cages were used as usual
way of keeping poultry.
According to Council Directive 1999/74 specific rearing system to increase animal welfare in
the egg production will become obligatory by 2012.
More than 80% of the Croatian egg producers do not yet comply with these standards.
Therefore, costly investments (9 – 11 EUR per laying hen) are essential otherwise most of the
producers will have to close down the production. Currently there are 34 bigger egg producers
in Croatia, with capacities from 20.000–200.000 laying hens who should implement such
investments in order to maintain their production.
Eggs without
7 185 236 94 200 129
shell
Albumins 5 6 15 51 53 20
Egg trade has been developed on the international level (see Table 2-53). Eggs import is
taking place in accordance to customs regulations and concluded conditions of a free trade
with the numerous countries as well as the European Union.
Preferential conditions for eggs and albumin were arranged with the each of the particular
country in the frames of bilateral free trade agreements or upon the Stabilization and
Association Agreement with the EU.
In Croatia, quotas are not applied in the terms of limiting import, but the particular quantities of
the poultry products could be imported in accordance to preferential conditions (Ordinance on
customs quotas allocation, OG No. 55/04, 146/04 and 138/05).
Export of poultry products to other countries is not supported.
Croatia is allowed to apply maximally permitted custom rates, according to agreement with the
WTO.
Regarding trade with third countries, there is no existing permission system for the products
that fell into common market organization for eggs and poultry in Croatia. That is considered
also on non – existing import licences.
All producers who produce products of animal origin for the market are registered in the
MAFRD, Directorate of Veterinary.
Eggs for selling are obligatory being marked in accordance to the class.
On the product declaration producers are obliged to label name of the producer, product name,
product mass and date of packaging, including other labels, in accordance to the Regulation of
General Food Declarations and Food Labelling (OG No. 114/04, 128/04 and 34/05). Eggs are
classified in 10 classes regarding mass, in accordance to the Regulation of the Eggs and Eggs
Products Quality (OG No. 53/91, 96/97 and 128/97).
SX > 85
SZ 85-80
SV 80-75
SU 75-70
S 70-65
A 65-60
B 60-55
C 55-50
D 50-45
E < 45
Production and selling control in the poultry industry is performed by veterinary and market
inspection services (see chapter 2.3.4.5 and 2.3.7.1).
At the moment, Croatian regulations on production and sale of eggs to the market is not yet
fully harmonized with the respecitive EU regulations.
Poultry farming represent a great source of quality and cheap nutritive substances for the
inhabitants. As the greatest part of the large production systems was established in the
previous period, it is necessary for reconstruction to be performed with the purpose of
satisfying animal welfare, environmental and ecology standards. Also, because of open market
it is important that already established production systems become competitive on the world
market.
An overview of state aid schemes for poultry sub sector is given in Chapter 2.2.
From the total amount of 203 approved slaughterhouses the biggest percentage is the
slaughterhouses for ungulates (76,84%) while 23,15% are for poultry (see Table 2-56).
As to contribute to a better quality of beef meat, an improved control system for beef carcasses
on the slaughter lines according to the EU minimum standards were introduced. The
ordinances are in most parts harmonized with the respective EU directives.
Bjelovarsko-bilogorska 6 1 7
17
Regulation EC 852/2004, Article 2(c) – „establishment“ means any unit of a food business
version of 14. 12. 2007; 74
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Brodsko-posavska 5 5 10
Dubrovačko-neretvanska 4 4
Grad Zagreb 8 5 13
Istarska 5 4 9
Karlovačka 5 1 6
Koprivničko-križevačka 3 1 4
Krapinsko-zagorska 4 1 5
Ličko-senjska 8 8
Međimurska 4 12 16
Osječko-baranjska 2 2
Požeško-slavonska 2 2
Primorsko-goranska 7 7
Sisačko-moslavačka 6 1 7
Splitsko-dalmatinska 26 1 27
Šibensko-kninska 6 1 7
Varaždinska 2 5 7
Virovitičko-podravska 5 5
Vukovarsko-srijemska 7 1 8
Zadarska 17 4 21
Zagrebačka 24 4 28
156 47 203
Source: MAFRD, 2008.
Significant increase in the number of slaughterhouses in Dalmatia ocured in the 90ies (see
also Table 2-56). During this decade a large number of small slaughterhouses and meat
processing plants were opened. This was the result of the incentives provided by the
independence status of Croatia and by the new business development programme by
Government. The increase in slaughterhouses and processing plants in Zagreb County was a
result of the post war migrations of people towards the capital. During the last few years that
number has also increased in Slavonia (Osijek - Baranja county), which is the region that was
most devastated during the war (1991 – 1995).
Ordinance on Food Hygiene (OG 99/07) drafted on the basis of the Regulation 852/2004, in its
Articles 14 and 15, prescribes the national measures related to specific establishment
categories.
The procedures for food business operators after performed categorization has been strictly
prescribed by Minister's Decision regarding procedures for upgrading the food business
operators (CLASS: 322-01/08-01/228, REG.NO:525-6-08-1/NK,of April 7, 2008). In addition,
the procedures for veterinary inspectors performing categorization, after performed
categorization has been stipulated by Minister's Decision (CLASS. 322-01/08-01/270,
REG.NO: 525-6-08-1/NK, of April 22, 2008,)
In 2007 in Republic of Croatia started the categorization process of food of animal origin
business operators regarding alignment assessment of approved establishments with EU
Regulations.
On the national level categorization of all establishments was conducted in accordance with
their compliance and they were classified into 4 categories.
Based on consultations with EC (Bruxelles, 3. December 200718), the RC reorganized existing
4 type categorization into 2 type categorization – EU compliant and EU noncompliant
- establishments in compliance with EU standards and
- establishments non – compliant with EU standards.
Direct sales in the RC are currently regulated by the Ordinance on maintaining databases of
registered and approved establishments and on procedures for registration and approval of
establishments dealing with food (OG 125/08) and partially Ordinance on veterinary -sanitary
conditions to be met by premises registered for treating, processing and storing products of
animal origin on agricultural family holdings (OG 149/03) which is laying down requirements for
processing food on the holdings of origin.
Pursuant to the above Ordinances, the following activities are permitted:
18
Negotiations on Chapter 12 – Food Safety, Veterinary and Phytosanitary Policy
version of 14. 12. 2007; 76
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
applied in accordance with the Ordinance on the performance of analytical methods and the
interpretation of results (OG 2/2005). These ordinances are aligned with the acquis
communautaire.
Animal by - products
Animal by-products not intended for human consumption are regulated by the Veterinary Act
(OG 41/07) and the Ordinance on handling animal by-products not intended for human
consumption (OG 56/06). The Ordinance is partially aligned with Regulation (EC) No
1774/2002. The Ordinance stipulates procedures for handling animal by-products not intended
for human consumption, and veterinary and sanitary conditions for the collection, transport,
storage, handling, processing and use or disposal of animal by-products, in order to prevent
these products from presenting a risk to animal or public health, or the environment. The
Ordinance also lays down conditions for the trade, import, export and transit of animal by-
products and products derived from them.
The Ordinance also lays down which animal by-products generated in various establishments
must be dispatched for heat treatment process. Animal by-products do not need to be directly
dispatched to an incineration plant, but may be collected at the intermediate plant, where they
have to be stored on adequate temperature. Direct dispatch of by-products to the processing or
incineration plant is allowed only from establishments generating up to 1 ton of animal by-
products daily. Veterinary Directorate has to register special vehicles for the transport of by
products. Intermediate plants have to be approved by the Veterinary Directorate.
In the RC there is one processing plant for heat treatment process for Category 3 material with
a daily capacity of over 300 tones, receiving Category 3 material from the entire country
(Agroproteinka at Sesvetski Kraljevac – Zagreb County). Agroproteinka is a beneficiary of
SAPARD funds aimed at harmonization with relevant Community standards. There are also 5
processing plants for Category 3 material within establishments producing food of animal
origin, where only animal by-products generated in these establishments (poultry
slaughterhouse and fish processing establishments) are processed. Their daily capacity is 2 -
10 tones. For the heat treatment of Category 1 and 2 materials there is one plant with a daily
capacity of over 100 tones (Agroproteinka).
Furthermore, in the RC there are 4 intermediate plants for animal by-products not intended for
human consumption, in which Category 1 and 2 materials are stored separately from Category
3 materials. Chilled animal by-products are dispatched from these plants by special vehicles
registered at the Veterinary Directorate to plants for heat treatment. There is also one storage
plant approved only for the storage of Category 2 material (animal carcasses). In addition, full
and due disposal of animal waste in Croatia requires at least five facilities - intermediate plants
with the capacity of 80 - 100 t/day and necessary temperature regime for the needs of the
following several counties jointly, preferable in places (and 100 km around).
Koprivnica - Križevci, Varaždin, Bjelovar - Bilogora Virovitica - Podravina and Međimurje
counties - Križevci
Istria, Primorje - Gorski Kotar counties – Pula;
Požega-Slavonia, Osijek-Baranja, Brod - Posavina, Vukovar - Srijem counties – Slavonski
Brod;
Zadar, Šibenik - Knin, Lika - Senj counties - Benkovac;
Split - Dalmatia, Dubrovnik - Neretva counties - Split
Currently, Croatia has two “county” intermediate plants (in Rijeka and Pula) from which one is
not in compliance with Community standards.
aquaculture, processing of fish and other water organisms, as well as overall control,
supervision and international co-operation. The administrative body in charge is the Directorate
of Fisheries within the MAFRD.
The fisheries sector accounts for a small portion of the national GVA as demonstrated in the
Table 2-57 but it provides for around 20.000 jobs and thus plays a significant socio-economic
role with the traditional fishing dominating the commercial type. Almost 70% of fishing, farming
and processing take place on the islands where income sources are limited. The Table 2-57
further shows that the absolute value of the fisheries sector continues to grow over the given
period while its share in total GVA decreases.
The total production of marine capture fishery reached 34.661 tons in 2005, out of which small
pelagic fish accounts for 82,6% (28.621 tons of sardines, anchovies and sprat) while the
balance of 4.325 tons comprises demersal species and 1.467 tons of shellfish and other
marine organisms (Table 2-59).
Increasing trend in catch record occurred due to introduction of logbook system in 2000. That is
the main reason for noted increase of demersal catches which doubled in 2004 if compared to
2001. Regarding the pelagic fish and in addition to the establishing data record system, the
introduction of incentives for small pelagic fish in 2003 resulted with obvious increase in catch
of pelagic fish in total – the figure of 19.500 tons in the year 2002 increased to 34.661 in 2005.
In regard to freshwater capture fishery, sports and recreational fishing (Table 2-60) dominates
in terms of subjects engaged (36.781 in 2005) and catch quantity (521,5 tons in 2004). the
number of active commercial fishermen on the rivers Danube and Sava is limited (maximum of
25 commercial fishing licenses issued on Danube and 10 on Sava river) and catch as
presented in Table 2-61 (0,45 and 0,51 in 2004 and 2005 respectively) insignificant if
compared to total catch of sports and recreational fishery.
2000 457
2001 463
2002 428
2003 415
2004 521,50
2005 621
Source: CBS and MAFWM, Directorate of fisheries
In the year 2004 Directorate of Fisheries began to collect data and monitor the catch in
commercial freshwater fisheries (Table 2-61). Also, in the same year the quota was set for the
catch of indigenous freshwater fish species which is still in force. The data of the catch in the
years previous to 2004 are not available.
version of 14. 12. 2007; 80
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Marine aquaculture
Croatian marine aquaculture predominantly includes production of sea bass (Dicentrarchus
labrax) and sea bream (Sparus aurata) in floating cages (inshore and/or semi-offshore) and
bluefin tuna (Thunnus thynnus) in offshore floating systems. Shellfish production is mostly
composed of black mussel (Mytilus galloprovincialis) and European flat oysters (Ostrea edulis)
on long lines.
It is clear from Table 2-62 that production of sea bass and sea beam has slightly increased
during last two years. Due to the increase of domestic demand, revitalisation of tourism, and as
well to the new investment possibilities, it is expected that this production should continue
increasing in the coming years. Shellfish production is stagnating due to the fact that marketing
is limited only to domestic market. It is expected that as soon as EU requirements for export
will be fulfilled, production will be significantly increased. Tuna production is the fastest growing
activity but it is expected that there will be no future significant increase, due to the fishing
restrictions.
Some investments in fish production have been done recently, but there is a strong need to
continue with modernization of presented farms to fullfil EU standards. Fry production is not
meeting the requirements of domestic needs and it is predicted that at least one hatchery (10
million fry annual production) should be constructed in the near future.
Shellfish production is mostly family bussines, there are only about 10 farms producing more
than 50 tons annually. As legislation regulating distribution and purification centres for shellfish
has entered in force recently, there is a strong need for construction of new centres. There is a
strong need for construction of several hatcheries for oysters, especially in the context of
planed production increase. It is necessary to expand existing national monitoring of the areas
and zones for shellfish production to all the locations that have good predispositions for
shellfish farming. Monitoring is going to provide basis for registration and validation of new
production areas.
The entire marine aquaculture sector needs to be adjusted to the changed market situation.
This does not apply only to the fish production, but also to the processes of recognizable
profiling and product confectioning. The focus inevitably shifts towards increased diversification
of products and introduction of new species to the production process, based on continuous
scientific research tested through development programs. Another necessary step concerns
measures to introduce the HACCP system to all marine fish farms. Long-term strategic
objective is to achieve efficiency comparable to international competitors, while at the same
time meeting the most stringent environmental and quality standards.
Freshwater aquaculture
In 2005, the production in the freshwater aquaculture reached 6.199 tons. Altogether, the
production has over last five years decreased, primarily due to disappearance of traditional
markets and problem related to transition processes (Table 2-63). The surface area of farms
has also decreased, reaching in 2005 one-half the size in 1995 (Table 2-64). One reason for
this decrease is that this area has been strongly affected by recent war activities, and the
second one is intensification of production. Fish farming includes freshwater fish species in
cold water (salmonids) using the technology of flow-through channels and farming of warm-
water species (cyprinids), predominantly carp in fish ponds. As the production is carried out in
a completely extensive manner, the yield rarely surpasses 500 to 600 kg/ha. With the annual
production reaching some 3.000 to 5.000 tons (compared to the real potential of approximately
12.000 tons) and several hundred tons of trout, the freshwater cultivation certainly does not
match the natural potentials of Croatia or even its historical highs. The main problems of the
freshwater aquaculture are high water-management and veterinary fees and unresolved issues
concerning compensations for damages caused by fish-eating birds. the objective is to
increase the production in the next decade to 12.000 – 15.000 tons.
fish fry 37 27 57 19 80 55
Silver carp
consumption 72 226 301 414 299 270
fish fry 2 2 3 1 1 16
Tench
consumption 6 2 6 11 8 13
fish fry 20 7 22 18 12 9
Catfish
consumption 38 31 36 54 59 31
Pike perch fish fry 1 2 1 1 2 7
consumption 8 6 9 6 6 3
fish fry 2 1 2 0 1 1
Pike
consumption 19 11 11 2 9 4
fish fry 52 24 17 50 8 46
Others
consumption 33 39 60 23 53 49
19
WW – warm water
20
CW – cold water
version of 14. 12. 2007; 83
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
There is a strong need to help revitalisation of freshwater aquaculture sector and its future
sustainable development. The main investments should be done in building a new fresh water
farms and hatcheries, modernising the existing ones to reach necessary sanitary standards
(HACCP), constructing facilities for processing and adding new values to farming products.
Education of all structures involved is a basic imperative.
Producers
As shown in Table 2-65 majority of legal entities registered for fishery in Croatia, engage in
seawater fisheries whereas in the continental part of Croatia 5,76% are dealing with freshwater
fisheries. In both cases, micro-sized entities are predominating with 96% and 4% of small-sized
entities.
As far as the regional distribution is concerned, Table 2-65 shows that majority of entities
registered for fishery activities are located in the Istria county (21,15%); then in the Primorje -
Gorski Kotar county and Split - Dalmatia county (both with 19,23%). Further on, Zadar county
marks 15,38% registered entities, Dubrovnik - Neretva county 13,46% whereas Zagreb county
and Šibenik - Knin county both marking 5,76% registered entities for fishery activities.
Table 2-65: Fishery legal entities by county and size (2000 - 2006)
The City of Zagreb
Freshwater Fisheries 1
Zagreb 3 5,8%
Seawater Fisheries 2
Bjelovar - Bilogora 0 0 0 0
Koprivnica - Križevci 0 0 0 0
Krapina - Zagorje 0 0 0 0
Osijek - Baranja 0 0 0 0
Lika - Senj 0 0 0 0
Požega-Slavonia 0 0 0 0
Seawater Fisheries 10 0 0
Istria 11 21,2%
Freshwater Fisheries 1 0 0
Brod - Posavina 0 0 0 0
Sisak - Moslavina 0 0 0 0
Varaždin 0 0 0 0
Virovitica - Podravina 0 0 0 0
Vukovar - Srijem 0 0 0 0
Međimurje 0 0 0 0
TOTAL 50 2 0 52 100,0%
Source: CCE; Situation on 13th December 2006.
According to the DG Sanco21 list of fish (from catch and farming) and fish-product exporters,
there are 72 business entities distributed in eleven counties (Table 2-66).
Zadar 17
Split - Dalmatia 16
Istria 15
Šibenik - Knin 5
Lika - Senj 2
Zagreb 2
City of Zagreb 1
Dubrovnik - Neretva 4
Bjelovar - Bilogora 1
Krapina - Zagorje 1
TOTAL 72
21
The acronym for the Directorate General for Health and Consumer Affairs
version of 14. 12. 2007; 85
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Split - Dalmatia 8 4 1
Zadar County 12 3 3
Šibenik - Knin 2 0 11
Istria 2 0 11
Dubrovnik - Neretva 5 0 45
Total 32 7 71
It is estimated that in Dubrovnik - Neretva county some 100 shellfish farmers are awaiting
registration due to obstacles related to land planning, and the number of farmers awaiting
registration in Šibenik - Knin county is around twenty.
Zadar 1
Šibenik - Knin 1
Split - Dalmatia 3
Zagreb 6 2
Lika - Senj 4
Požega - Slavonia 1 3
Koprivnica - Križevci 2
Karlovac 5 1
Virovitica - Podravina 1
Osijek - Baranja 5
Bjelovar - Bilogora 4
Sisak - Moslavina 1
Brod - Posavina 1
Vukovar - Srijem 1
TOTAL 22 21
Processing industry
Due to transition problems, loss of former markets, customs restrictions, lack of capability to
meet the standards of the EU market, and lack of significant investments, most of former salt
works and processing companies in Croatia have been closed.
According to the records kept by the Commercial Court of Croatia, 40 companies are
registered for fish-processing, out of which 24 companies are active Out of the 24 active
companies, 5 companies fall into the medium-size, 11 companies are small while 12
companies are considered micro sized (Table 2-69).
version of 14. 12. 2007; 86
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Table 2-69: Geographical distribution and number of companies registered for fish
processing
COUNTY Large Medium Small Micro
Krapina - Zagorje 1
Osijek - Baranja 2
Međimurje 1
Vukovar - Srijem 1
Virovitica-Požega 1
Istria 1 3 1
Split - Dalmatia 1 3 5
Šibenik - Knin 1
Zadar 1 2 1
Dubrovnik - Neretva
Bjelovar - Bilogora 1
TOTAL 0 5 11 12
Salted fish (t) 350 1.881 2.500 2.800 2.900 3.914 6.110
Frozen fish
(fillets and 250 470 850 1.500 3.200 3.500 1.935
other) (t)
Canned fish
14.000 14.500 15.500 14.000 11.700 5.256 6.920
(t)
Other
(salads, 120 60 110 120 1.200 1.600 1.980
mixed) (t)
In the fish-processing sector in 2005, 6.110 tons of fish was salted, 1.935 tons was
frozen/filleted, 6.920 tons canned and 1.980 tons were processed in other manner (marinated
products, salads, pates and semi-finished products) (Table 2-70). Apart from canned sardines
(62% of the total production), the most of remaining production was filleted tuna and mackerel.
significant increase is visible in quantities of processed salted fish, frozen fish and other, and
decrease in quantities of canned fish. Costs of canned fish production in Croatia are high,
resulting with uncompetitive products at EU market. due to the lower production costs and
market value, salted and frozen fish products can successfully compete.
In addition to problems related to market standards, the fish-processing industry has adapted
with difficulty to new market conditions. In fact, the lack of investment in technology
development and product diversification led to exclusive orientation to sardine and anchovy as
marine and carp and trout as freshwater resources. Only four largest producers possess export
license for the European market and meet the standards.
When it comes to distributing centres and centres for shellfish purification 30% are registered
for export, but none has the license to export to the EU market.
version of 14. 12. 2007; 87
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Capacity of existing distribution and purification centres in Croatia are from 200 up to 7.50 t per
year It is expected that in the future there will be more need for such centres.
Table 2-71: Distributing centres and centres for shellfish purification (2006)
County Total number export registration
Šibenik - Knin 4 1
Split - Dalmatia 1 1
Istria 5 1
Total 10 3
Table 2-72: Prices of most significant fish species - marine fisheries catch in EUR (2000 -
2006)
Fish 2006
species 2000 2001 2002 2003 2004 2005 (Jan-
(kg) Oct)
Sea-bream
7,49 5,94 6,53 6,38 6,88 8,20 8,51
I
Sea-bream
3,51 3,37 3,59 3,89 3,57 4,03 3,99
II
Gilthead
4,52 10,44 6,83 5,52 7,38 9,03 10,93
sea bream
Stripped
1,87 2,09 1,92 1,84 1,42 1,63 1,87
mullet
Musk
0,74 0,83 0,99 0,83 0,86 1,05 0,88
white
Musk
1,29 1,24 1,23 1,37 1,45 1,65 1,68
black
Table 2-73 and Table 2-74 give numbers on import and export of sea water fish and fish
products, as well as their share. The most important export products are fresh (from catch and
farming), and fish products (canned fish and salted fish).
Table 2-73: Import and export of fish and fish products volume and value (2000 - 2005)
Import Export
Year
MT EUR MT EUR
2000 25.532 25.011.936 18.247 33.233.116
2001 37.955 35.122.031 10.322 35.349.144
2002 56.292 57.326.763 22.365 60.356.580
2003 57.315 62.526.460 22.687 86.814.141
2004 38.627 54.237.167 23.428 78.599.004
2005 53.671 74.372.291 24.416 73.574.612
Source: MAFWM, 2006
Table 2-74: Share of exported fish and fish products of total value (2004, %)
Tuna 51,75
Other 25,25
Total 100
Governmental policies
version of 14. 12. 2007; 89
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
The activity of marine fishing is regulated by the Sea Fisheries Act (OG No. 74/94, 57/96, 46/97
– consolidated text, and 48/05 see page 315) as well as a number of implementing regulations.
Freshwater Fisheries Act (OG No 106/01, 7/03, 174/04, 10/05, 49/05 – consolidated text, see
page 315) regulates freshwater fishing activities.
Main objectives of the Croatian fishing policies are:
• consolidation and restructuring of the fisheries sector;
• achievement of permanent, balanced and sustainable management of fishing
resources in accordance with fishing capacities;
• development of aquaculture with a special emphasis on achieving international-grade
competitiveness, while meeting highest environmental and quality standards;
• improvement of processing through new-value addition and better utilisation of the
resources from catch and farming;
• establishment of organised marketing of fish and fish products;
• improvement and modernisation of the fishing fleet;
• development of infrastructure and logistic support to the fishing industry (ports, docks,
moorings, transport etc.);
• establishment of efficient mechanisms of structural measures in the fishing industry;
• education of all subjects concerned in the fishing industry entities;
• strengthening of fishermen's associations.
In accordance with the Sea Fisheries Act, a long-term plan for the management of biological
resources will be adopted in 2007.
The strategic fishing policy guidelines have been defined by the Development strategy for
agriculture and fisheries, adopted as one of 19 constituent parts the Government of Croatia
Strategy »Croatia in the 21st century« (OG 89/02), which deals with agriculture, fishery and
food industry, including:
• adapt fishing and fish farming to the principle of sustainable and responsible
management taking into account protection of the environment,
• adapt aquaculture to market requirements,
• promote environmental criteria for farming and management of water resources in
order to promote them as attractive export and tourist product,
• modernize fish processing and include new economic operators by providing
favourable investment funds and through financing of operational costs,
• stimulate the development of small family households based on fishing,
• stimulate the usage of appropriate and selective fishing tools,
• organise the transport of fish through disembarkation points, buying centres, auction
centres and wholesale markets,
• initiate and stimulate the construction of the continental fishing infrastructure and
logistics,
• stimulate professional fishermen's associations.
In the pre-accession period the priority objectives of the fishing policy of Croatia are: to
strengthen and expand marine and fresh water farming and secure sustainable management
of animal resources, while, at the same time, increasing the competitiveness of producers
through marketing and structural mechanisms and establishment of appropriate administrative
institutions.
As it is anticipated that fish farming will be given important place in the pre-accession process,
the most important investments are intended for modernisation of existing and construction of
new farming facilities and environmental performance in order to increase the product quality
and diversity. In addition to that, special attention will be paid to reach all EU requirements
concerning quality, environmental protection and sanitary conditions in fish-processing
companies and to diversify production both in farming and processing. Very important segment
is port/vessel/trade facilities modernisation, in order to improve storing, cooling, packing,
handling and all other activities that could improve final product quality by meeting all the
necessary sanitary standards (ICO, HACCP). Education of all actors included in fishing,
farming and processing is essential.
The lack of financial support and limitation of credit facilities (due to the failure to meet EU
sanitary and health standards) would cause closing of enterprises and increased
unemployment rate. Furthermore, inability to meet the fresh-fish standards may cause further
degradation of the fishery sector. This would also hinder the development of coastal and
continental rural areas which significantly depend on this branch of agriculture. Thus, the
IPARD measures should provide necessary conditions for the regular supply of fresh fish and
raw materials for the market, processing and farming, ensuring highest quality and consumer
protection.
Overview of state aid schemes is given in Chapter 2.1.
2.3.4.7.1 Grains
Background and key information
Share of total agricultural production in total GDP of Croatia in the last few years was about 7%
(2002 – 2004). In total plant production in Croatia share of grain production has the most
important place.
In total structure of arable agricultural land, 1,09 million ha is cultivated with grains, which cover
approximately 70% of all land. Therefore, the grain production in Croatia is maintained, in
average, on 720.000 ha with total gross production of 3,6 to 3,8 million of tons of grains (see
annex 12.3, Table 12-3). In grain production was registered decrease; in 2000 (maize, in
particular) and also in 2003 (for all other grains), which was a direct implication of long term
drought.
In the structure of grains production, dominant culture is maize with 58%, wheat with 32%,
barley with 7%, oats with 2,6% and rye and the other grains in total with 0,4%.
Regarding production structure and areas, production of wheat is in steady decline (self-
sufficiency is 130%), and it is produced on 220.000 ha. Maize production shows slightly
increased trend (self – sufficiency of 101%), as well as barley production (self-sufficiency of
87%). Areas sown with other cereals do not show significant changes. All grains yields vary
from one year to another and they often mirror (un)favourable agro climate changes which
were present during the past years. In 2003, yield of all cultures was reduced (by 20 – 30%),
which was a direct implication of drought. An average yield is approximately 5,1 t/ha. Croatia in
a whole has very good conditions for grain production (soil fertility, climate benefits and
tradition).
Total balance need for grains in Croatia is about 3,2 million of tons (see Table 2-78). From that
amount, for cattle feeding is used 2,3 million tons; as a seed consumption about 85.000 tons;
for the industrial needs including maize and barley fodder grits in beer industry is spent about
70.000 tons. Market losses are quite high, and they are about 5%, mostly because of the way
of keeping maize on the farms. Human consumption is about 660.000 tons, and consumption
per capita is estimated on 165 kg. In average years, self – sufficiency in grain sector is on the
level of 110%, mostly because of the greater wheat production in comparison with total needs.
Producers
Total number of agricultural farms in Croatia, according to Agricultural Census from 2003, is
483.326, out of which 244.439 farms produce only grains (see annex 12.27, Table 12-17). 60%
of these farmers produce grains at the most 2 ha of, 5.5% produce grain on 10 to 20 ha, and
1,6% are bigger than 20 ha (these farmers can be assumed being competitive om the market)..
For the purpose of achieving the desired level of market competitiveness, it is necessary that
certain technical and technology preconditions are realized: increasing the size of land parcels,
appropriate agricultural mechanization and equipment, notable warehouses capacities and
drying facilities.
The uneven distribution of existing warehouses and insufficient capacities in certain areas
(counties) is a limiting factor for a great number of farms (see Graph 2-10).
148813
160000
140000
120000
100000
Number of
80000 55852
holdings
60000
26136
40000 9680 3958
20000
0
0>2 ha 2>5 ha 5>10 ha 10>20 ha >20 ha
Table 2-75: Situation in the Register of Agricultural Holdings regarding applications for
grain subsidies
Year 2003 2004 2005
Table 2-75 shows the trends in number of the agricultural farms (family farms, trade
companies, cooperatives, etc.) registered in Register of Agricultural Holdings regarding
realization of the state supports for grains. In 2005 there were 63.344 farms representing about
25% of total registered farms producing grains in Croatia (Table 2-78).
In Table 2-76 regional distribution of warehouse capacities per counties is presented, showing
that the areas with significant grain production lack warehouses capacities (for instance, Brod –
Posavina and Požega – Slavonia county where the warehouses of smaller capacities are
present in only 3 enterprises), what confirms investment justifiability in this sector.
Producers, registered as companies, are registered in the Croatian Chamber of Economy,
under National Classification of Economic Activities (NCEA): activity A0111, Grain production
and other sowings and plantation.
According to this evidence, for mentioned activity (A0111), there are registered 367 companies,
which submitted the final financial account for 2004, from which are 322 small companies, 32
medium and 13 large companies.
Processing industry
0 > 10.000 5
> 100.000 2
According to Register of millers, bakers, producers of mixtures and concentrate and flour
importers, those were enlisted until 31 December 2005, in total:
• 181 millers,
Table 2-78: Supply - demand balance sheet of cereals production (2000 - 2004)
Year 2000 2001 2002 2003 2004
wheat
1.032,09 965,15 988,18 609,26 920,61
(‘000 t)
maize
1.585,72 2.286,09 2.578,04 1.630,32 2.468,43
(‘000t)
Domestic production
barley
151,44 161,49 170,95 134,24 181,87
(‘000 t)
oats
51,14 47,63 50,00 34,12 48,78
(‘000 t)
others
14,72 14,64 14,15 9,19 14,52
(‘000 t)
Monitoring price system in Croatia is organized through the Market Information System in
Agriculture - TISUP, within the Ministry of Agriculture, Fisheries and Rural Development. Price
collecting is done by cooperants, independently; Ministry does not interfere in the system of
collecting, processing and publishing of price information.
Prices are collected on the level of agricultural farm in the season of buying in and selling.
Wholesale prices are collected during the whole year.
It can be seen that price trends of the main crops (maize and wheat) in the last few years have
been stable in average. Although they depend on market oscillations, farmers are enabled to
plan their production.
Great share of grains is sold right after the harvest by direct marketing in the field, in the case
of shortage of the great warehouses capacities in situation when there is a great number of
producers, and prices in such way of selling are considerably lower and they amount in
average of 60 – 70% of the before mentioned prices. As a result of a greater capacity of
warehouses, thereby storage of grains for a longer period of time, would contribute to the
achievement of a higher price in the market by selling in the optimal period.
There are no export subsidies for the grains, according to the Protocol of the Accession of
Croatia to the Marrakech Agreement Establishing the World Trade Organization (OG,
International Contract, No. 13/2000).
Preferential conditions for wheat trade were contracted with European Union, Bulgaria,
Albania, Serbia, Bosnia and Herzegovina, Macedonia, Moldova, Montenegro.
By Protocol of the Accession of Croatia to the Marrakech Agreement, Croatia gained obligation
of gradually decreasing of custom taxes for agricultural and food products during transition
period, which ends in 2007. According to mentioned Protocol, Croatia has no right to apply
export subventions. There are also defined preferential trade conditions with the countries
members of WTO.
Croatia does not apply import / export permissions as a model for tracking import and export.
Import licenses issuing is limited on an import situation in a framework of preferential quotas,
regulated by contract on free trade, what is within the competence of MAFRD.
Agriculture Act decrees Directorate for Market and Structural Support in Agriculture (DMSSA)
of MAFRD, as authorized unit for operative implementation of trade measures and structural
support in agriculture. That comprises implementation of market – price policy measures,
including trade measures (customs and custom quotas which are defined in accordance with
the obligations taken in the framework of World Trade Organization and others international
agreements which Republic of Croatia has ratified).
In Croatia, due to specific conditions upon wheat buy in, as main bread grain, for the last few
years regulation for wheat buy in has been adopted every year, defining:
• Guaranteed price,
• Interventional buy in and selling conditions,
• Wheat quality, subject to interventional buy in.
By adopting this regulation, state has disregarded the term “minimum price” and has released
wheat buying and selling to the market conditions and relationship between the seller and the
buyer.
For other grains, such a regulation in the form of CMO, has not been adopted yet. Regarding
harmonization of enterprises with the Community standards, in 2005 9 enterprises have got
ISO, 6 HACCP and 4 are preparing HACCP, there were no data for enterprises with export
permission.
There is a need to stress that existing equipment and technology in the most of the grain
processing enterprises are obsolete. Modernization is needed in order to achieve Community
standards, because at the moment only 12 enterprises do comply with these standards (some
of them only to a certain extent).
In total, share of these cultures in the production structure is still relatively small so there are
further possibilities for expanding areas covered with oil crops, as for total needs for raw oil and
also bio diesel production.
area (000
47,48 41,62 47,90 49,86 36,98 48,21
ha)
Soybean production
65,30 91,84 129,74 82,59 97,92 119,60
(000 t)
area (000
12,89 10,32 13,04 15,52 14,28 20,15
ha)
Oilseed
rape production
29,44 22,46 25,59 28,60 31,39 41,27
(000 t)
area (000
25,72 25,34 26,84 28,21 28,33 49,77
ha)
Sunflower production
53,95 42,98 62,96 69,25 68,97 78,00
(000 t)
area (000
86,08 77,27 87,77 93,59 79,58 118,12
ha)
Total
productio production
148,69 157,28 218,29 180,44 198,28 238,88
n (000 t)
Average
1,72 2,03 2,48 1,92 2,49 2,02
yield (t/ha)
Producers
Differences between numbers of farms appearing during the years are the result of fluctuation
of oil crop prices in the market and also unfavourable conditions for oil crop production, which
has influenced some producers. Approximately 8.500 farms used state support for the oil crop
production in 2005. This number will probably increase in the following years due to
possibilities for increase of production of all oil crops in Croatia. That especially refers to
oilseed rape production because of the production of bio diesel which has realistic conditions to
be increased (available land, requirement for bio diesel) and the necessity for orientation of
agricultural farms on the other types of production.
Table 2-81: Situation in Register of Agricultural Holdings regarding applications for oil
crops subsidies 2003 - 2005
Year 2003 2004 2005
3500
3000
2500
2000
1500
1000
500
0
0>2 ha 2>5 ha 5>10 ha 10>20 ha >20 ha
The greatest number of oil crops producers is situated in 5 Slavonian counties, although other
areas in continental parts of Croatia have very good conditions for oilseed rape production, so
increase in number of farms with this type of production is to be expected. This need to be
accompanied by assuring warehouses capacities for the oil crop storage.
From this table is also visible that in this sub - sector there are not so many problems existing
with the production in smaller units, as it is the case with grains.
Processing industry
According to NCEA for production of raw oil and fat production (activity: DA1541) are
registered 21 companies (with final financial account from 2004), out of which:
• 19 small enterprises,
• 1 medium and
• 1 large enterprise.
For the production of refined oils and fats (activity: DA1542) there were registered 9
enterprises, out of which:
• 5 small,
• 2 medium and
• 2 large enterprises.
Table 2-82: Supply - demand balance for oil crop production (2000 - 2004)
Year 2000 2001 2002 2003 2004
soybean
65,29 91,84 129,74 82,59 97,92
(000t)
oilseed
domestic production rape 29,43 22,45 25,58 28,59 31,39
(000t)
sunflower
53,95 42,98 62,96 69,25 68,97
(000t)
soybean
31,03 78,55 130,07 103,1 42,92
(000t)
oilseed
rape –
3,24 0,001 0,003 0,002 0,019
Import seed
(000t)
sunflower
seed 0,26 1,64 16,29 7,94 0,66
(000t)
soybean
1,19 2,47 16,71 27,93 14,03
(000t)
oilseed
export rape 22,04 9,76 3,95 15,62 5,45
(000t)
sunflower
5,53 5,82 6,87 12,66 25,24
(000t)
Import of oil crops shows slight increase (see Table 2-82) in observed period as well as export.
There is a free market economy in Croatia regarding oil crops trade. Some producers appear
on the market individually and a part of a trade is maintained over the legal persons,
contractors for the production.
Currently there are no registered organizations of oil crops producers in Croatia.
Table 2-83: Price fluctuations in the oil crop market (2001 - 2005)
An overview of state aid schemes in grains and oil crops sub sector is given in Chapter 2.1.
2.3.4.8.1 FRUITS
Background and key figures
version of 14. 12. 2007; 99
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Conditions for fruit production in Croatia, concerning climate and soil exist within the country,
except mountain areas with altitude above 1.000 m. Croatia is among rare EU countries in
which almost every type of fruit, from subtropical cultures of citrus fruit and olives, to all types of
inland pomiferous plants, drupes and soft fruit may be produced.
According to statistic data, land under fruit plantations occupies about 69.000 ha or 2,2% of
total agricultural land.
Fruit production in Croatia is mostly based on production located on agricultural farms and is
mostly not market directed. During previous years, especially from 2000, certain progress is
discernible concerning number of apple trees while conditions concerning other types are
merely unchanged. Structural production problems (raising plantations within the framework of
farms on smaller areas, insufficient knowledge and lack of knowledge of new technologies)
both concerning apples and other types of fruits lead to yield oscillations, visible from Table
2-84.
Table 2-84: Production of selected fruit types and number of planted fruit trees (2000 - 2005)
Fruit Unit 2000 2001 2002 2003 2004 2005
About 95% orchards are owned by family agricultural farms, and mostly the problem is
fragmentized and unproductive production with no function in market supply. The fruit statistics
comprises fruit sorts growing on the family farms' private plots or by hobby farmers, producing
mostly for their own home consumption, family farms' plantations, including entrepreneurs and
craftsmen and the trade companies' plantations. With regard to these growing types, there are
considerable differences in the production technologies.
As may be seen from data in Table 2-85 a share of organized plantation orchards makes 33%
of the total number of trees. On these plantations production is organized in modern
technological and economic principles and is mostly oriented to the markets for direct
consumption or processing. For some fruits sorts, the share of plantation growing is
considerably higher than the mentioned average, such as for apples 57% or peaches and
nectarines 47%, Production and offering of fruit in Croatia is smaller than potential options,
and in this sector is necessary to change the approach and encourage technological and
structural modernization of farms which find their existence source in fruit production.
Table 2-85: Total tree number of selected fruit kind and share of plantation orchards
plantation
FRUIT TYPE Total tree number
Tree number hectare
Current circumstances of home fruit production do not satisfy even 50% of domestic needs.
The reasons for it are mostly state inherited, i.e. disregard and lack of recognition of fruit-
growing in Croatia within the longer period before independence (then the valid unofficial
distribution of production in ex Yugoslavia in which the priority in fruit and vegetable production
was given outside Croatia (Macedonia, Serbia) and in Croatia was located the processing
based on raw materials from that area), war period (for almost 10 years), and later the shortage
of more stimulating agricultural policy measures which were no good for restructuring of
existing ones, mostly extensive and agricultural production, into working and capital intense
production in fruit growing, viticulture, olive growing, vegetable growing and floriculture.
Subsequently because of such unfavourable production structures, and lack of organization of
market, Croatia imports significant quantities of all types of fruit, apples more than 50% of
home consumption, pears 80% and peaches 70%.
Besides above stated problems related to production, problems also exist because of unsteady
and undeveloped market infrastructure. Namely, available capacities are insufficient, and
equipment is technologically outdated, in particular within the segment of storage, preparation
for processing (semi processed) and fruit processing. That is the reason that the major part of
produced fruit is stored in inadequate conditions, and because of that regularly a significant
part of the produced fruit quantities decay. At the same time undeveloped and not known
wholesale market infrastructure affect the orientation to import which becomes a sign of the
local market. In such circumstances local merchants usually do not contract production with
Croatian fruit producers, but are orientated exclusively to import, and because of that a
dependence on import has significant dimensions.
In 2000 - 2003 period in the Republic Croatia were imported total 1.408.393 tons of fresh and
processed fruits of total value 726.217.577 USD (see annex 12.24, Table 12-25 and Table
12-26)
As has already been said the reason for fruit import dependence is before all in insufficiency of
home fruit production. Namely, total fruit production according to statistical indicators
depending on the year, varies from 160.000 tons (2001 and 2002, and 2003 are atypical; frost
and bad weather destroyed a significant part of yield in 2001 and 2002 while in 2003 there was
a serious drought). Consumption varies from 70 kg/inhabitant which multiplied with 4,5 million
of inhabitants is 320.000 tons of fruit. According to that annually is about 160.000 tons of fruit
imported, and self-sufficiency in fruit production is around 50%.
Table 2-86: Fruit import share on the market of Croatia from 1997 - 2003
Import share
Total Consumption per
Import Export Available quantities in available
production inhabitant
quantities
At the same time for the purpose of realistic consideration it is necessary to separate fruit
import concerning exotic fruit which may not be grown in Croatia, and notably bananas,
pineapples, etc. These kinds of fruit are imported in quantity of 70.000 tons and the major part
regards import of bananas, about 50.000 tons (Equator, Columbia). So in the remaining 70.000
tons, as much is imported in Croatia, is the most direct competitor to the home production.
Producers
According to Agricultural Census 2003 there were 304.783 family farms producing fruits out of
which 13.311 (4,36%) are producing fruits in a modernized way (plantage). Only 5,54% of all
producers has orchards bigger than 10 ha (16.882). Distribution by size of family farms is
visible from the following graph.
Graph 2-12: Distribution of family farms by number, size and type of orchard, 2003
160000
140000
120000 orchards
100000 plantage
80000
60000
40000
20000
0
<1 1 to 3 3 to 10 10 to 20 >20
Also in 2003 there were 132 legal entities producing fruits in technologically advanced way.
Out of all legal entities 89,39% has more than 10 ha of plantage orchard (19,70% with more
than 100 ha) as shown in the following graph.
40
35
30
25
20
15 Orchards
10
5
0
<1 1 to 3 3 to 10 10 to 20 to 50 to >100
20 50 100
2.3.4.8.2 Vegetables
Background and key figures
A wide range of vegetable production in Croatia is possible in the whole country, thanks to
geographical and climate differences. According to statistical data, vegetables in Croatia
occupy around 135.000 ha, or 9,3% of total arable land and gardens. Potato production
represents 46% of mentioned vegetable production.
Other
68.083 68.908 70.476 71.645 72.433 69.177
vegetables22
22
cabbage, kali, tomato, paprika, cucumber, onion, carrot, melon
version of 14. 12. 2007; 103
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Accordingly, vegetables without potato are produced on around 70.000 ha. On this area, in
average more than 370.000 tones of different vegetables are produced, which is not sufficient
compared with total demand. There has been slight increase in vegetable production area from
2000 – 2003 but there was considerable decrease in production due to sevear drought in year
2003.
CBS does not make evidence of production of all vegetables types separately.
Producers
According to Agricultural Census 2003, there were 138.428 family farms producing vegetables
out of which 68,98% produce potato. Only 12,99% of all producers have production area larger
than 5 ha (17.994). It is also obvious from the following graph that beside potato and
leguminous vegetables, only 16,68% produce all other vegetables.
Graph 2-14: Distribution of family farms according to number, size and type of production,
2003
50000
40000
30000 Potato
Leguminose
20000
Other
10000
0
<1 1 to 5 5 to 20 >20
When looking at the structure of legal entities it can be noticed that most of the production is
orientated on other23 types of vegetables which is different to production on mentioned family
farms due to higher level of technology needed, costs and market of products. There are 300
legal entities producing vegetables out of which 42% have more than 30 ha under vegetables
(19% more than 100 ha = 59 producers) as shown in following graph.
23
Other vegetables – according to CBS, it includes all vegetables (fresh or chilled) other than potato and
leguminouse (i.e. – tomato, cabbage, kale etc.)
version of 14. 12. 2007; 105
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Graph 2-15: Distribution of legal entities by number, size and type of production, 2003
60
50
40
Potato
30
Leguminose
20 Other
10
0
<1 2 to 5 6 to 30 31 to 100 >100
Fragmented production, selling directly to the consumers through local green markets and own
consumption aggravate making accurate statistics of vegetable production and marketing.
Other sources of data about vegetable production quantity and value are not available.
Concerning greenhouse production there are available estimation data from CAEI presented in
following table.
Karlovac - - - - - - - -
Lika - Senj - - - - - - - -
Osijek - Baranja 5,67 1.020,60 5,9 206,32 4,8 864 10,01 238,76
City of Zagreb 18,2 182 14,6 102,2 6,2 40,3 43,05 699,3
According to CAEI estimation in 2006, there were approximately 200 ha under tomato, 136 ha
under paprika, 133 ha under cucumber and 241 ha under all other vegetables in greenhouses.
Due to rotation of crops within greenhouses it is hard to make estimation based on sum of all
acreage. Total production in greenhouses by this estimation was around 45.000 t. Also based
on this estimation all production area is inadequate and to small to satisfy needs of domestic
consumption. Average size of greenhouses of commercial bigger producers is from 2.000 m2
up to 10.000 m2.
Part of vegetable production comes from production in gardens for own consumption, which is
on low technology level, with low yields.
Average vegetables yields in Croatia are lower compared with European and world averages
(e.g. 8 times lower for tomato than the European average yield, 6 times lower for cucumber, 4
times for onion) (see Graph 2-16). However, there are also in Croatia bigger and specialized
vegetable producers who use modern technology and make very high yields and quality.
180
160
140
Croatia
120
Italy
100
Germany
80
Spain
60
Greece
40
20
0
Tomato Cucumber Onion Cabbage & Lettuce
kale
Table 2-91: Vegetables prices on the gross markets, 1998 - 2003 (EUR/kg)
Vegetables 1998 1999 2000 2001 2002 2003 Average
Potato 0,29 0,20 0,33 0,26 0,18 0,38 0,27
Tomato 1,01 0,99 0,91 0,98 1,21 1,13 1,04
Peppers 1,35 1,29 1,23 1,50 1,41 1,74 1,42
Cucumbers 0,87 0,85 0,77 0,83 0,95 1,18 0,91
Onions 0,56 0,45 0,46 0,42 0,39 0,52 0,47
Carrots 0,63 0,67 0,60 0,66 0,66 0,70 0,66
Cabbages and kale 0,45 0,44 0,46 0,38 0,49 0,55 0,46
Beans, dry 1,48 1,59 1,76 1,84 1,69 1,63 1,67
Source: TISUP, MAFWM, 2004
Table 2-92: Vegetables prices on the local green markets, 1998 - 2003 (EUR/kg)
Vegetables 1998 1999 2000 2001 2002 2003 Average
Potato 0,42 0,34 0,48 0,42 0,33 0,55 0,42
Tomato 1,50 1,48 1,43 1,50 1,78 1,63 1,55
Peppers 1,98 1,99 2,00 2,19 2,25 2,10 2,09
Cucumbers 1,28 1,36 1,33 1,33 1,52 1,51 1,39
Onions 0,82 0,70 0,69 0,69 0,66 0,78 0,72
Carrots 0,99 1,03 0,97 1,03 1,05 1,11 1,03
Cabbages and kale 0,73 0,72 0,74 0,64 0,84 0,87 0,76
Beans, dry 1,67 2,05 2,23 2,48 2,45 2,28 2,20
Source: TISUP, MAFWM, 2004
In average, prices on local markets are 34% higher than on gross markets.
Selling prices of selected vegetables in the European countries are lower than prices in
Croatia.
Vegetable prices in Croatia are higher than average in the European Union countries, in the
first place because of higher import duties on fresh vegetables. Namely, during the
negotiations with WTO the rate of regular and seasonal duties has been established to be paid
for vegetable import in the period of maximal local production offer. Consequently, imported
vegetables form the price at the level of extra duties.
Graph 2-17: Average selling gross market prices (excluding VAT, in HRK/kg)
9
8
7
Croatia
6
Italy
5
Germany
4
Hungary
3
Spain
2
1
0
Tomato Cucumber Onion Cabbage Lettuce
Source: DATIMA Sistema Informativo Statistiche Agricole, Italy; EUROSTAT, TISUP, MAFWM 2004
Yields in the Croatian vegetable production are in average 5 times lower than in the European
countries whereasthe total specific costs of the production are higher. Gross market prices of
vegetables are higher in Croatia than in EU countries. Croatian producers are not organized
into producers’ organizations. They lack facilities such as packing, sorting and grading
equipment as well as logistic for the marketing of their vegetables.
In order to organize modern vegetable production which would result in higher product quality
and popular market vegetable price it is necessary to solve land problems (concentration,
organization, irrigation), modernize production by modern mechanization and construct modern
storage spaces, construct storage and cooling capacities, and purchase processing, sorting
and vegetable packaging lines.
In regard to quality standards, Croatia is at the stage of taking over of standards resulting from
Commission Regulation 2200/96, and until then the Ordinance on fruit, vegetable and
mushroom quality (OG 53/91, 114/04) is valid. Therefore, majority of Croatian vegetable
producers at the moment could hardly compete with the European producers on the global
market.
From the Table 2-93 it can be seen that the value of import of vegetables (fresh, processed
and dried) is 6-12 times higher (depending on the year) than the value of exported vegetables
(resulting in a negative import-export balance.
Table 2-93: Trends in import - export balance of vegetables, 1999 – 2003, USD
1999 2000 2001 2002 2003
Total semi processed and dried vegetables - export 250.826 458.329 404.429 450.759 719.974
Total semi processed and dried vegetables - import 14.129.274 11.853.047 12.806.973 14.470.693 17.595.153
Balance - total semi processed and dried vegetables -13.878.448 -11.394.718 -12.402.544 -14.019.934 -16.875.179
Mushroom production
The sub-sector of mushroom growing is a bit more specific compared to other vegetable
production. This production has wide possibilities but for serious progress in production it is
necessary to ensure fundamental conditions. Nowadays the mushroom production in Croatia is
mostly oriented and connected to import. Even sterile grafted compost is imported mainly from
Hungary, Italy and Belgium (Maasmechelen).
Due to transport costs (import) of the reproduction material total production costs is increased
by approximately 15%. This situation (import) makes the whole sub sector of mushroom
growing extremely vulnerable, as besides transport load costs; there are problems of quality
reduction and complete ruin of compost. Still, there is a potential for mushroom production in
Croatia especially related to development and diversification of economic activities in rural
areas.
Compost and mushroom mycelium 12.605 1.778.825 11.907 1.887.463 13.327 2.266.765
Edible mushrooms fresh or cooled, dried preserved 2.293 3.615.708 2.387 3.948.762 2.638 3.491.032
Edible mushrooms fresh or cooled, dried preserved 192 1.340.885 365 3.876.819 430 2.981.030
In accordance to data 13.327 tons of compost is annually imported to Croatia and about 1.870
tons of fresh mushrooms. According to that, total home production of fresh mushrooms on
imported substrate is 4.000 tons. The total annual consumption of fresh mushroom in Croatia
is about 5.870 tons, for which in terms of production about 20.000 tons of compost is needed.
In order to improve the production it is necessary to ensure production of raw materials
(compost) through construction of new composting plant with minimum capacity of 20.000 tons.
version of 14. 12. 2007; 110
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
By such project preconditions for competitive home mushroom production will be made, and at
the same time chicken manure and straw disposal issue, (required raw material for compost
production) could be solved.
Producers’ organizations
Important preconditions for improving the economic efficiency of the fruit and vegetable
producers is establishment of the producer organizations. EU experiences and legal
regulations on the Common Market Organization (CMO) for fruits and vegetables indicates that
weakness regarding the producers' fragmentation and badly organized sale could be overcame
considerably by join supply through producer and marketing association.
Due to limited financial resourses available to Croatia under IPARD the establishment of
producers organizations in the fruit and vegetable sector along the conditions set out in the
respective EU CMO will be supported under national support schemes. It should also cover
specific training needs for fruit and vegetable producers and dissemination of information on
key concepts of the CMO, operational programmes and marketing standards.
Based on the Act on Agriculture, the legal act, i.e. theRegulation on Establishment of
Producers Organizations, will have to be adopted in April 2008 at latest. The regulation will be
elaborated in line with the EU rules and will define the legal status of the producers’
organizations (legal entity in compliance with national rules), minimum condition for recognition
of the Producers Organizations (annual turnover, minimum number of members), obligation
about marketing of products, etc.
Moreover a Register of Approved Producers Organizations will be established within the
MAFRD and updated annually.
Furthermore, a "structural support measuer" requires the elaboration of a Regulation on Co
financing of Producers Organizations’ Operational Fund Establishment, based on Act on State
Aid in Agriculture, Fishery and Forestry.
Producers organizations approved by MAFRD and listed in the Register will be entitled to
receive funds for up to 50% of the organization members’ contribution for the operational fund
for their operational programmes. In addition, MAFRD also intends to support the gross salary
for one professional employee in the producers’ organization.
The legal basis for the measure to support the setting up of producer organizations in the fruit
and vegetable sectore should be ready early 2008 with the objective to implement the measure
in the second half of 2008 or first half of 2009 at the latest depending on the funds available in
the State budget for 2008 and 2009.
Within the framework of PHARE 2005 project “„Institutional Capacity Building and Support for
Implementation of SAPARD/IPARD Programme in Croatia“ long-term technical assistance
related to CMO for fruits and vegetables will be made available. This will also cover the
preparation of the legislation and implementation of the CMOs as well as trade mechanisms,
the support of the setting up regular market and price monitoring systems, buying in of
agricultural produce, storage, sales, stock control, operation of control systems and control of
supply management instruments. Available technical assistance will be used for preparation of
described activities regarding establishment of producer organizations and preparation of legal
basis.
In the framework of “PSO business to business” programme, financed by EVD -The
Netherlands Government Agency, within the projects “Upgrading of the Croatian Vegetable
Production” (which was finished in 2005) and “Improving the Institutional and Commercial
Strength of the Croatian Fruit Sector” (which is still ongoing), importance and main
characteristics of producers organizations in EU were elaborated and presented to public on
several occasions (public presentations of projects results). Since main beneficiaries of
mentioned project have been umbrella producers associations (Croatian Union of Vegetables
Producers Associations and Croatian Fruit Association) important message regarding
producers organizations have already been communicated to the Croatian fruit and vegetable
producers, as well as to extension officers, processing industry and others.
MAFRD will continue, in cooperation with CAEI, with information dissemination on key
concepts of CMO, including producers’ organizations, operational programmes and marketing
standards for fruit and vegetables.
Table 2-97: Production, import and export of fruit products (2001 - 2004)
Import
Available Export share
share in
FRUIT Measure quantities in
Production Import Export available
PRODUCTS unit on market production
quantities
(t) (%)
(%)
Out of total available quantities of fruit products on Croatian market, 78,5% are imported
products.
Precondition for development of the fruit and vegetables processing sub-sector is production of
raw material for the food processing industry or for processing on farms. This requires
modernisation of production tehnology and processing itself.
Production of the following products needs to be increased:
• frozen fruits and vegetables,
• minimum processed fruits and vegetables and semi-processed products for fruit and
vegetable juices,
• processed products from potato and tomato, canned fruits and candied fruits,
• low pickled and pasteurized vegetables, including organic fruits and vegetables.
Graph 2-18: Storage (cooling) capacities for fruits and vegetables (in t)
Split-Dalmatia
Bjelovar-Bilogora
Karlovac
Dubrovnik-Neretva
Zadar
Primorje-Gorski Kotar
Vukovar-Srijem
Brod-Posavina
City of Zagreb
Virovitica-Podravina
Požega-Slavonia
Osijek-Baranja
Zagreb county
Sisak-Moslavina
Koprivnica-Križevci
Međimurje
Fruit and vegetable processing altogether represents the lowest share in total processing
industry. Croatia was during the nineties one of the exporters of these products and today is
prevailingly importer, and in total consumption needs of the imported goods its participation is
80%. In the existing conditions,there is a need for significant investments, before all into
modernization of existing and introduction of new processing technologies.
Also there is a lack of logistic centres for raw material preparation (receipt, cleaning, sorting,
storage, packing) in Croatia.
In the production segment, there is a need for investments in the modernization of fruit and
vegetable production, introduction of new technologies, investments in mechanization,
extension of production in protected areas in order to ensure production continuity and fill in the
present seasonal gaps in the domestic production.
Overview of state aid scheme for fruits and vegetables sub sector is given in Chapter 2.1.
According to climate conditions, the sub regions fall into following wine-growing production
zones:
• Zone B comprises sub regions: Moslavina, Prigorje-Bilogora, Plešivica, Pokuplje, and
Zagorje-Međimurje,
• Zone C1 comprises sub regions: Podunavlje, Slavonia,
• Zone C2 comprises sub regions: Istria, Hrvatsko Primorje, Dalmatinska Zagora,
• Zone C3 comprises sub regions: Northern Dalmatia, Central Dalmatia, and Southern
Dalmatia.
According to the Croatian CBS, total vineyard area in Croatia in 2004 amounts to 50.000 ha
but in year 2005 there is a significant decrease in vineyard area for almost 40% due to new
data collection system from CBS.
The most important grape varieties in Croatia are graševina (Welsch Riesling), malvazija Istria
(Istrian malvasia) and plavac mali. These three varieties represent 48,09% of the total and the
remaining 51,91% is comprised of 37 varieties with highest individual share of any variety lower
than 3,5%.
The grape production in 2004 was 236.807 tons or 1,5 million hectolitres of wine, respectively.
Total vineyard Vine stocks, mill. Yield per wine Grape production,
Year surface
plant, kg t
area,'000
Total Productive
24
Year 2004 – estimate by CBS
25
Year 2005 – estimation by CBS according to the wine cadastar that is not finished
version of 14. 12. 2007; 116
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Producers
Typical for Croatian viticulture are fragmented land parcels under vineyards. Most of the
vineyards are owned by family farms with an average vineyard size of less than 1 ha (see also
annexes Table 12-13 and Table 12-14).
From 2000 - 2004 total vineyard area decreased by 15,3%, as well as grape production which
increased from 2000 - 2002 and than sharply decreased by 33% compared with year 2000.
The decrease in wine growing acreage in 2005 is mostly due to different data collection and it
is considered to be more accurate. It is shown that Croatia has approximately 30.000 ha
covered with wine grape.
Total yield in kg per ha decreased from 2002 – 2004 by 25,8% and in the same period yield per
productive wine plant decreased also by 2,5%. Reasons of decrease in yields are huge
percentage of vineyards older than 25 years and bad climate conditions in 2003 and 2004. It
can also be seen that in 2005 average yield per ha has increased up to 6.304 kg/ha.
According to Croatian Institute for Viticulture and Wine (2005) 60,7% of vineyards are more
than 25 years old, 24,1% is 15–20 years old, 9,4% is 5 – 15 years old and 5,8% of vineyards is
up to 5 years old.
The number of wine-producing households in the sector is 154.116 (see Table 2-101). Out of
the total number of households in the sector owning vineyards, 148.564 (96,4%) households
own vineyards with total surface area below 0,5 ha and 5.698 (3,6%) households own
vineyards larger than 0,5 ha
Table 2-101: Number of households and legal entities with vineyards, by counties (2003)
Number of legal Number of
No COUNTY
entities households
4. Karlovac 2 4.331
5. Varaždin 3 4.331
7. Bjelovar–Bilogora 3 4.745
40.000
35.083
35.000 30.647
30.000
25.339
25.000
17.405 18.741
20.000 16.717
15.000
10.000 6.091
5.000 2.424 1.523
0
0 > 0,1 0,1 >0,5 0,5 > 1 1>2 2> 3 3>5 5 > 10 10 > 20 ≥ 20
According to evidence of Croatian Institute for Viticulture and Oenology, the number of
producers registered in the Register of Grape, Wine and Fruit Wine Producers in 2005, who
sell their wine on the market was 14.692 (see Table 2-102).
From 2003 - 2005 number of registered producers of wine increased by 7,8%.
Although the number of producers has increased, the number of productive wine plants
decreased by 18,6% and the total vineyard area by 12,3% decresed in 2003 and 2004
because of 61% vineyards older than 25 years and bad climate conditions in given period (see
Table 2-98).
Table 2-102: Number of producers (grape, wine and fruit wine) who sell their wine on the
market, by counties, 2003-2005
Number of producers
County
2003 2004 2005
Karlovac 52 57 65
Koprivnica - Križevci 59 67 73
Bjelovar - Bilogora 42 50 84
Lika - Senj 42 86 85
Virovitica - Podravina 21 26 35
Brod - Posavina 81 78 80
City of Zagreb 32 32 40
Source: Register of Producers of Grape, Wine and Fruit Wine, Croatian Institute for Viticulture and Oenology, 2006
10.000
9.066
9.000
8.000
7.000
6.000
5.000
4.000
2.914
3.000
1.912
2.000
1.000
110
0
Up to 0,5 ha 0,5 - 1 ha 1 – 5 ha More than 5 ha
Source: Register of Producers of Grape, Wine and Fruit Wine, Croatian Institute for Viticulture and Oenology, 2006
Wine production in
1.891 1.952 2.095 1.768 1.510 773
000’ hl
Croatia produces 60,6% of Quality wine (top-quality wines 3,7%, quality wines 56,9%) and
Table wines 39,4%.
According to Wine Act (OG 96/03 see page 317), wines are classified by quality categories
depending on the quality of processed grapes, yield per hectare, degree to which the grapes
are ripen, processed and tended, the content of natural alcohol and other constituents and the
organoleptic (sensory) characteristics.
By quality the still wines are classified as:
• table wines
• table wines without a geographical indication,
• table wines with a geographical indication,
• quality wines
• quality wines with a geographical indication,
• top-quality wines
• top-quality wines from specified and limited wine-growing districts,
• top-quality wines from specified and limited specific wine-growing districts,
• predicate wines with a geographical indication.
Quality and top-quality wines are kept in wine-cellar conditions for five or more years of which
at least three years in bottles, are entitled to bear the designation "archival wine".
Wines of higher quality comprise quality and top-quality wines.
Classification of quality wines on quality wines with a geographical indication and top quality
wines with a geographical indication has been a long tradition and because of consumers
protection it was not changed.
Based on the production consumption balance, the calculated annual consumption of wine per
inhabitant is 42 l (excluding stocks ).
According to the Croatian Institute for Viticulture and Oenology, in 2005, out of 14.692
producers only 940 producers (5,31%) sold their wine on the market. This was 86% of the total
annual production in 2005.
According to same source there were 50 big producers (see also Table 12-22) with an annual
production of more than 1.000 hl of wine which makes 85% of the total wine sold on the
market.
35
29
30
No of producers
25
20
15 11
10 7
5 3
0
1 to 5 5 to 10 10 to 50 >50
'000 hl
Out of 940 producers 95% (890) produce 14% of the wine sold on the market. Their annual
production volume is below 1.000 hl, with an average of 105 hl per producer.
The wine processing sector lacks of new and modern technologies to allow for wine processing
under improved sanitary conditions in wineries as well as the processing of high quality wine
which will help to better meet market demands and increase the market opportunities for the
Croatian Wine, in particular in the view of the country's EU accession ahead.
Imports of wine in terms of volume and value in the period beginning in 2000 up to 2005 were
quickly growing, so in 2004 the value of wine imports for the first time surpassed the value of
wine exports. According to the CBS, total wine imports in 2004 reached 13.592 tons worth 15,2
million USD, which represents year-on-year increase in volume of 46,6% and increase in value
of 40,6%.
The value of wine exports from 2000 to 2005 has continuously grown, whereas the volume of
exports has been shrinking since 2002. In 2004, total wine exports reached 5.515 t (12,6
million USD) which in comparison to 2003 represents a decrease of 39,8% in terms of volume
and an increase of 4,9% in terms of value (see Table 2-105).
Wine import in the last five years has been rapidly increasing because of the very low prices of
imported wine compared with domestic wines of the same quality (see Table 2-104). Croatian
wines have high market prices because of high production costs and outdated production
technology.
Authorized laboratories which carry out physical-chemical analysis of must, wine, other
products from grapes and wine, fruit wines and other products based on fruit wines in Croatia
are:
• the Croatian Institute for Viticulture and Oenology – Test Laboratory - Zagreb
version of 14. 12. 2007; 123
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
• the Institute for Adriatic Crops and Karst Reclamation – Oenology Laboratory - Split
• the Veterinarska stanica d.o.o. – Čakovec
• the Institute for Agriculture and Tourism, Wine laboratory - Poreč.
The laboratories are authorized pursuant to the Wine Act (OG 96/03 see page 317) and the
Ordinance on Conditions for Analysis of Must, Wine, Other Products from Grapes and Wine
and Fruit Wines and Other Products Based on Fruit Wines (OG 102/04).
The Wine Act and its implementing regulations are partly aligned with EU regulations. The
Wine Act does not prescribe the compulsory implementation of the HACCP to wineries. At the
moment, there are no official data available on the number of wineries with which already
implement the HACCP system.
Products for export must have a certificates issued by the Croatian Institute for Viticulture and
Grape. Grapes, crushed grapes, wine and other products from grapes and wine which do not
comply with EU regulations concerning viticulture and wine production, as well as the Wine Act
and regulations adopted on the basis thereof cannot be exported, imported or put into
circulation.
Imported grapes, crushed grapes, wine and other products from grapes and wine must comply
with requirements set out in the Wine Act and regulations adopted on the basis thereof. Such
products must have a quality certificate issued by a competent institution in the producing
(exporting) country, and if such products do not originate from EU Member States, they must
have additional quality certificate issued by the Institute. Import and control of wines originating
from EU Member States is carried out in accordance with the Additional Protocol on wine
adjusting the trade aspects of the Stabilisation and Association Agreement between Croatia
and the European Union.
An overview of state aid schemes for wine and viticulture sub sector is given in Chapter 2.1.
Table 2-106: Number of olive trees and area under olive trees per county (2003)
Olive trees Olive trees Plantation olive trees
number
total number total
of total Fruitful
County26 number of fruitful number
fruitful area, ha area, ha
of trees trees of trees
trees
Krapina -
407 405
Zagorje
Sisak -
164 157
Moslavina
Karlovac 25 21
Koprivnica-
65 53
Križevci
Bjelovar -
50 41
Bilogora
Primorje -
106.983 96.268 3.013 2.176 13,01 10,83
Gorski Kotar
Virovitica -
37 27
Podravina
Požega -
67 65
Slavonia
Brod - Posavina 54 52
Osijek - Baranja 41 31
Vukovar -
12 2
Srijem
Dubrovnik -
432.415 352.336 81.357 64.335 286,69 231,96
Neretva
26
In the Agricultural Census from 2003 data processing, home adress of the olive growers are taken as
relevant, therefore olive trees are in the counties where they can not be cultivated
version of 14. 12. 2007; 125
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
CROATIA
2.432.653 2.020.699 451.738 342.746 1.724,32 1.348,96
TOTAL
Producers
According to the Agricultural Census from 2003, there were 40.143 olive oil producers in
Croatia out of which 40.105 (99,9%) were family holdings and only 38 (0,1%) were legal
enterprises.
Zagreb County 33 0 33
Krapina - Zagorje 10 0 10
Sisak - Moslavina 18 0 18
Karlovac 6 0 6
Varaždin 14 0 14
Koprivnica - Križevci 25 0 25
Bjelovar - Bilogora 21 0 21
Virovitica - Podravina 16 0 16
Požega - Slavonia 15 0 15
Brod - Posavina 13 0 13
Osijek - Baranja 20 0 20
Vukovar - Srijem 2 0 2
Međimurje 15 0 15
Table 2-108: Size of olive varieties in ha and % of total area (2000 - 2005)
Olive varieties ha %
Table 2-109: Olive production trends, cultivated area and yield (2000 - 2005)
Year 2000 2001 2002 2003 2004 2005
Total number of olive trees, 000 3.365 3.413 3.460 3.524 3.743 2.935
Number of yielding olive trees, 000 3.078 2.993 3.101 3.092 3.238 2.239
Olive trees were cultivated on a total area of 15.616 ha in 2000 up to 16.980 ha in 2004 which
indicates a growth of 8,7%. As far as the size of the plantations is concerned, in 2004 most
farms (40%) occupy a small area between 0,5 – 2 ha. 37% of the olive tree plantations are
below 0,5 ha whereas plantations bigger than 2 ha make up only 23%. In 2004, 3,7 millions of
olive trees were planted on a total area of 16.980 ha out of which 86,5% (3,2 mil) were
productive trees (due to alternate bearings in the given period (1999 - 2005) the production of
olives varied (due to climate, support schemes, etc.).
The average yield per tree in the period from 2000 to 2004 ranged from 3,07 kg to 10,63 kg of
fruits, and total production of fruits was between 9.482 and 32.955.000 tons. In 2005 a great
boost was noticeable in production where the average yield was 16,3 kg/tree.
In 2005, CBS changed its methodology and collected for the first production data about olive
yields on family farms through interviewing a selected sample of farmers. The method of
collecting data through estimates provided by agricultural surveyors according to cadastral
information so far used was abandonded. Due to that, significant differences appeared in the
number of productive trees compared with those for previous years.
According to the Act on Associations, olive growers are associated in 38 associations
registered at the State offices in counties. However, most of the growers are still not organized
in such associations or producer organizations.
Processing industry
% of % of
total total
hl tons hl tons hl tons
produ produ
ction ction
Varying in oil production on the agricultural farms and in industrial production came from the
fact that olive tree has an alternate bearings. In 2003 an intensive drought has occurred which
influenced on olive yield as on all other crops (see Table 2-108).
In February 2005, olives were processed by 112 mills in Croatia, out of which 35 are
cooperatives with a capacities of 0,08 up to 2,5 tons/hour (see Table 2-111). According to a
questionnaire performed by CAEI in December 2006 and January 2007 9 additional mills were
opened for processing of olive fruits. Large percentage (42%) of the mills use outdated
technology which has a significant influences on the quality of the produced oil.
Modern technology used in oil processing plants can mitigate the risk of negative effects which
can occur during the extraction of oil and which could lead to chemically induced changes of
the composition of oil. Such processes concern mostly small quantities but have an important
impact on the oil quality, as well as are of great biological and nutritional value. In particular,
mechanical steps during olive processing can induce reactions between water and oil system
as well as solid ingredients (pulp colloids) could for example. make the extracting of the whole
quantity of oil from vacuoles (because of the creation of emulsion) impossible.
Table 2-112: Share of olive oil p–rocessing and table olives out of total production
year Total production of olives (t) % table olives % olive for oil
Olive oil has become an important economic potential in agricultural production of the
Mediterranean part of Croatia, yet the quality production and processing is still at a low stage
compared to the situation in the EU Member States.
The quality level of olive oil is affected, among other factors, by time passed from harvest to
process, i.e. abiding period before processing and storing of oil in quality decanters. The
largest number of quality oils is processed within 2 days from harvesting.
Oil mills are mostly service providers (olive growers handover olives, takeover oil and manage
sales by their own). It should be emphasised that Croatia has a basic process of olives into
olive oil whereas does not have raw oil processing, filtration, and refinery and there are no
facilities for oil extraction from pomace.
Taking into account that the EU criteria have increased, as it could be seen from SMK (free
acidity, max 2% for virgin olive oils) values, and according to some experiences there might be
a lot of lampante oil. It would be good to have a refinery plant that would refine that oil and
distribute it on the market as refined oil that would be used in production of olive oil made of
refined olive oil and virgin olive oils. This process would avoid import of refined olive oil. There
is also another product in virgin olive oil processing. It is olive pomace - residue. Its exploitation
either for compost or for heating should be arranged.
Also, there is a need to increase capacities of existing mills by introduction of new technologies
and better utilisation of the existing ones.
Furthermore equipping the laboratories for basic chemical analyses would encourage buying
out and sale of quality oil to the end-customer because:
• basic chemical analyses provide the first information on quality of oil,
• oil of higher quality may be stimulated by higher buy out price,
• immediate buy out after the mill processing ensures an authenticity of the product,
• subsequent unit costs are distributed on larger quantity of products
It is necessary to equip laboratories for sensor analyses at other independent institutions
because:
• sensor analyses are equal to chemical analyses in regard to determination of oil
quality;
• the work on education of sensor analysts and creation of panels has just begun in
Croatia;
• given the character of this analysis the panels should be independent, and laboratories
placed outside the production plants.
At the moment, only 12 mills in Split – Dalmatia county have the laboratories for basic chemical
analysis. Taking into account that olive growth has been increasing during the last couple of
years, processing of olives into olive oil has been accordingly increasing, the advancement of
version of 14. 12. 2007; 129
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
processing and marketing requires for building of new and adaptation of the existing facilities,
introduction of new technologies in the mills, equipment of laboratories for basic chemical
analyses in the mills and equipment of olive oil packaging facilities.
Table 2-113: Trends in olive oil production; import – export; consumption and self
sufficiency ratio (2000 – 2005)27
Total Total Self-
Import Export Consumption
YEAR productio consumptio sufficienc
(tons) (tons) kg/pc
n (tons) n (tons) y (%)
Table 2-113 shows variable and fluctuated yield between 1.747 tons in 2003, when it was the
lowest, up to the highest of 5.100 tons in 2005 corresponding with the yield fluctuations.
In the same period import was higher than export, but like the export, import was constantly
increasing during the period. Total consumption of olive oil was between 2.815 and 6.571 tons
per year (see Table 2-113). Consumption per capita varied from one year to another and in
average it is approximately 1 litre per capita. Some quantity of olive oil is spent in and sold to
manufacturing enterprises. The data in the table displays that Croatia is not self-sufficient
regarding the olive oil in most of the years.
Table 2-114: Table olives production, import - export; consumption and self - sufficiency
ratio (2000 - 2005)
Total Total Self-
Import Export Consumption
YEAR producti consumptio sufficienc
(tons) (tons) kg / pc
on (tons) n (tons) y (%)
27
Number of inhabitants according to last census in 2001 = 4.437.460; Consumption per capita (Apparent
consumption = production + import – export /per capita) is calculated excluding the data about reserves.
version of 14. 12. 2007; 130
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
The production of table olives in the period given in the table was variable and it fluctuated
from 2.619 to 475 tons (see Table 2-114). Import in most of the years was significantly higher
than export. Total consumption of table olives was also variable and in all years it was bigger
that production. Consumption per capita in the given period fluctuated from 0,10 to 0,84 kg.
Data in table displays that Croatia is not self-sufficient regarding the table olives i.e. it does not
meet its demand for olive oil.
Table 2-115: Average production prices (EUR/l) of raw and non - refined olive oil (2000 -
2005)
YEAR 2000 2001 2002 2003 2004 2005
Price in EUR/l olive oil 6,15 6,28 6,41 7,16 7,55 8,10
Source: CBS28.
The Ordinance on oils of olive fruits and pomace (OG No. 63/2006) issued on the basis of
Food Act under the competence of MAFRD determines the request for quality oils of olive fruits
and pomace, i.e. categories and nomenclature, labelling, physical - chemical and sensor
properties of olive oil, etc. in accordance with the EU regulations.
In regard to alignment of legal basics in olive oil and table olives sector with EU legislation in
Croatia there has not been issued a unique regulation that would set out market relationships
and no intervention measures in order to protect against disturbances on the olive oil and table
olives market have been brought up. Furthermore, Croatia does not apply a system of
monitoring of foreign trade via import licenses and deposits. The system of incentives in
Croatia for olive oil and table olives sector is different from incentive system of European
Union. In Croatian incentive system no multiple mutual conditionality is established, i.e. there
are no prescribes measures of good agricultural practice that would make a condition for
attaining incentives. Croatia does not have an olive register based on GIS system. The existing
association of producers can not be compared to producing organisation defined by Acquis,
28
The data on average production price of the raw, non-refined olive oil are taken from the survey
"Monthly report on buy in of agricultural, fishery, and forestry products from agricultural family holdings”
and "Monthly report on sale of agricultural, fishery, and forestry products from own production – legal
entities
version of 14. 12. 2007; 131
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
neither by their organisation or role, and there is no system for financing of their operational
programmes.
Ordinance on oils from olive fruits and pomace, that regulates the quality of olive oil
encompasses relevant EU regulations is aligned thereof with the categories, properties of olive
oils and labelling. It is not aligned concerning authorisation of olive oil packaging facilities and
authorisation of independent panel for sensor evaluation.
In accordance with the Food Act, the obligation of the HACCP system establishment has been
prescribed. At the moment HACCP system is implemented in 4 mills (3 in Primorje – Gorski
Kotar county and 1 in Split – Dalmatia county). ISO certificates are implemented in 4 mills (1 in
Primorje – Gorski Kotar county, 1 in Split – Dalmatia county and 2 in Zadar county) although
Community standards that determine olive oil industry do not prescribe for the exporters of
olive oil to have export ISO certificates.
Development of olive growing in Croatia is planned through:
• restoration of the old and burnt plantation,
• planting of new plantations,
• application of modern agro-technical technologies,
• building of modern olive processing facilities,
• introduction of modern technologies in a production of table olives to satisfy the
demand of growing tourist economy,
• organisation of self-sufficient production of olive seedling, in particular of indigenous
varieties in registered and new breeding grounds
The planned objectives may be reached only by maximum engagement of all expert institutions
that should secure enough stem material, surfaces and seedlings needed to organise
commercial production in breeding grounds, construction of modern olive processing facilities,
and continuous education of olive producers in the field of technological achievements in olive
growing and oil industry.
Olive oil production process in Croatia should follow the regulations set out by the EU. The
most important part in the process of olive oil production will be played by producer’s
organisations and their associations, authorised for incentive receiving and their distribution
among its members that will also monitor and control olive oil market.
In order to achieve development goals it is necessary to connect representatives of producers,
retailers and processors of oil, since their organisations have a role in the monitoring and
controlling of the market, as well as in the administration of olive oil sector.
Positive trend of olive growing development is influenced by:
• value of olive oil in regard to health,
• high price of the olive oil,
• relatively high incentives,
• sufficient number of processing facilities,
• new technology of seedling production,
• addition to tourist activities
Most of the new plantations were built by the State incentives of Croatia. The incentives serve
for a unique goal: restoration of olives and olive oil production as a development potential and
revival of islands and coastal areas. Increased incentives positively influence on a decision
process of increasing areas under the olive trees. Furthermore, planting of the new plantations
is also a preventive measure against fires.
The policy of State incentives in olive growing is aimed at increasing of olive oil quality.
By Croatian accession to European Union the number of olive trees will be controlled by GIS
(Geographic Information System), after the development and implementation of cadastral
system of olives.
Therefore, the future of Croatian olive growing and oil production is affected by Operational
programme for planting of new plantations that was enforced in June 2004 by the Croatian
Government on a proposal of Ministry of Agriculture, Forestry and Water Management; those
estimations are in the course of four following years (2004 - 2007), cultivation of at 5.500 ha
new plantations and achievement of self-sufficient production of olive oil. Croatian Agricultural
Extension Institute is also directly included in the carrying out of the programme due to more
efficient tracking of the programme implementation and continual education of agricultural
producers in the field of the latest technology achievements in olive growing and oil industry.
Policy of production of olive oil is aimed at the increase of quality by incentives for producers,
modernisation of process facilities due to production of quality oils. The solutions for
improvement of quality in olive growing are:
• The application of modern production technologies,
• The application of modern process technologies,
• Acquisition of new skills and knowledge from the field of marketing.
• Identification of Needs for Improvement and Additional Qualifications in the Sector
Improvement and additional qualification in the sector requires for the establishment of sensor
evaluation (analysis) of the products and, accordingly, carrying out of education, registration
and authorisation of tasters of olive oil in Croatia.
Further vocational training in the sector, for oil laboratories should encompass the qualification
of personnel to determine free acid fats according to ISO 660, 1983 methods.
There is a need for experts in agronomy and process technology that should undergo further
specialisation in olive growing industry but we do not have concrete data about their number
and needs.
An overview of state aid schemes for olive sector is given in Chapter 2.1.
It has been already foreseen that the dependency of Croatia upon energy imports will increase
from present 55% of import share up to 70% in 2030. Utilization of biomass can decrease
dependence upon import of energy, and contribute to the protection of economy stability of the
country, to the national income and entire prosperity of country and inhabitants.
Besides the increase of energy sustainability, by producing and utilizing biomass, other
ecological, economical and social effects can be achieved. It contributes to the increase of
biological and environmental diversity, to the protection of soil and water, enables more
efficient waste management, also concerning waste from agriculture, forestry and wood
industry. On this way domestic industry can be stimulated and also new workplaces created,
contributing to the development of rural areas.
Croatia became a member of the United Nations Framework Convention on Climate Change
(UNFCCC) in 1996, and of the Kyoto Protocol in 1999, which derives obligations for decrease
of green houses gasses emissions. According to the Kyoto protocol, Croatia needs to decrease
the emission of carbon dioxide (CO2) to 0,5% by 2010 in comparison with 1990 (year with the
highest emission) which would require a reduction of 4,8 t per capita.
For the period from 2006 to 2015 an amount of wood mass foreseen for utilization for energy,
is about 2,6 million m3 (from that amount, 2 million m3 per year is supposed to be obtained
from Hrvatske Šume Ltd, and from the private forests owners 0,6 million m3). Available
quantity of wood waste from the wood industry in 2005 was 1,7 million m3, with remark
concerning wood waste quantity to be increased. Beside already mentioned available
quantities, wood biomass from horticulture, viticulture, and also from maintenance of areas in
close vicinity of roads and watercourses, have a great potential.
The areas of local self government units where the available volume of biomass for 50% of the
inhabitants equals or exceeds 0.6 m3 per capita have high potentials for the use of biomass.
These areas cover the following counties: Zagreb, Krapina - Zagorje, Sisak - Moslavina,
Karlovac, Varaždin, Koprivnica - Križevci, Bjelovar - Bilogora, Primorje - Gorski Kotar, Lika -
Senj, Virovitica - Podravina, Požega - Slavonia, Brod - Posavina, Zadar, Osijek - Baranja,
Vukovar - Srijem, Međimurje, Istria and the City of Zagreb.
1698/2005 for RDP. It will enable Croatia to use these standards with as little adjustments as
necessary for the AE measure under post-accession RD programme for EU Member States.
Also, it will motivate Croatia, despite of a potentially close EU accession date, to start preparing
and implementing the AE measures as early as possible to fully profit from the experimental
approach taken under IPARD and to become sufficiently experienced in implementing the AE
measures which will become obligatory.
Detailed steps necessary to accredit and implement the AE measure are presented in the
following table:
st
Training of trainers (programme and materials)
1 quarter of 2008
Preparation of promotion and publicity campaign
Preparation of training methodology for potential beneficiaries
Training of trainers
th
4 quarter of 2008
Training of potential beneficiaries
st
1 quarter of 2009 National accreditation of the measure
nd
Conferral of management
2 quarter of 2009
Training of potential beneficiaries
rd
3 quarter of 2009 - Implementation of the pilot AE measure
A grassland pilot measure in Lonjsko Polje Nature Park with the objective of restoring and
maintaining wetland grassland as a habitat for endangered habitat types and species included
in the annexes of the Council Habitats (92/43/EEC) and Birds (79/409/EEC) Directives.
An arable farming pilot measure in Zagrebačka County aimed at the reduction of existing and
prevention of possible future negative environmental impacts arising from adverse agricultural
practices as well as increasing biodiversity value on arable land and preserving its
characteristic mosaic landscape.
includes some elements of CGAP, prescribes maximum allowed quantities of liquid manure
that can be spayed per year (60 m³/ha). It defines ban on liquid manure applicatrion in certain
conditions (i.e. on agricultural land covered by snow or frozen land, in coastal zone, at
watercourses up to 10 m distance, etc). The Law on Agricultural Land prescribes measures for
protecting land against adverse agricultural practice, regulates the application oh harmful
substance to the soil and enquires that agricultural land is well managed.
The transposition of EU nitrate directive into national legislation is planed for 2008.
kg N ha kg N ha
2001 (t) 2002 (t) 2003 (t) t %
UAA arable land
N inputs
Seeds and planting material 3.850 3.650 3.750 3.750 1,7 3,5 4,7
Organic fertilisers 0 0 0 0 0 0 0
N outputs
Harvested grass forage crops 22.496 25.485 17.352 21.778 24 20,2 27,2
N efficiency % 43 49 34 42 - - -
N surplus
Losses
regarding specific conditions upon green - house gasses emission before and after 1990, and
which is emerging from the power system structure within the borders of ex Yugoslavia.
Pursuant to that decision, Croatia has been allowed to increase an amount of 31,7 Mt of CO2
of total emissions of green house gasses in 1990 for additional 3,5 Mt of CO2, because of
establishing rate of the CO2 emissions in the basic year. Adoption of this decision shall have
enabled the beginning of the ratification procedure of Kyoto protocol in Croatian Parliament in
April 2007, by which the Republic of Croatia will have accepted an obligation task on
decreasing of green - house gasses emissions for 5% in the first period required from 2008 to
2012, concerning base year. Croatia in harmony with National Strategy for the Environmental
Protection and with National Plan for Interacting with the Environment (OG, 46/02) is
implementing measures for decreasing of emissions of the green - house gasses with the
purpose of fulfilling obligations established in Annex B of Kyoto Protocol.
The ammonia emissions originating from agriculture represent 60% of total ammonia emissions
in Croatia, while nitrous oxide makes up 53% and methane 21% of total emissions.
Livestock Breeding Law (OG 70/97) and amendments to Livestock Breeding Law (OG 132/06)
are stipulated obligation for proper procedure with stable manure. Therefore, Directorate for
Agricultre at MAFRD plans to adopt, during 2008, an Ordinance of Good Agricultural Practice
on Manure Use and stipulate Codes of Good Agricultural Practice which shall be respected by
all farmers. It will prescible tehnical-tehnological conditions that have to be fulfilled in objects for
collecting of manure (dunghill, manure pit, pits for manure and lagoons) and by equipment for
processing and handling of manure.These measure are expected to contribute to reduction of
ammonia emissions. In the IPARD measuer „ Investments in agricultural holdings to restructure
and to upgrade to Community standards“ investment will be allowed in milk, meat and egg
sector with the condition of manure management compliance with Community standards.
2.3.6.5. Water
Croatia lacks a comprehensive system of water quality monitoring, resulting in inconsistent and
poor data. While the quality of fresh water is monitored to a degree by state-owned company
Croatian Waters, there is no systematic monitoring of the coastal water - only some basic
testing is being practiced for the region of Dalmatia. A comprehensive database of information
on nitrogen levels in lakes is not yet available and systematic groundwater monitoring exists
only in the city of Zagreb. In addition, both Croatian surface and drinking water quality is
assessed using fewer parameters than recommended by the World Health Organization or
signed conventions. Statistics on the share of agriculture in total soil and water pollution are not
available.
Data from the Croatian Water Resources Management Plan indicate that agriculture accounts
for more than 90% of the total nitrogen pressure on Croatian water resources each year.
Croatian agriculture threatens water resources primarily through the use of atrazine and
nitrogen applications above 150 kg N/ha. Both atrazine and nitrates are regularly found in
excessive concentrations in Croatian water resources.
The nitrogen content of the major rivers of the Danube basin, which is also Croatia’s most
intensive agricultural area, fails to meet the prescribed quality for the rivers. The eutrophication
process has been enhanced in most Croatian lakes and their phosphorus content is far above
the prescribed parameters for the second water category, ranging from category III-V. In 2000
only 30% of Croatian spring water (largely reflecting the quality of the ground water) met
prescribed nutrient content standards. An earlier report from the World Bank, similarly to
Zessner, points out that 51% of the nitrogen loss to the surface water of the Danube Basin
area of Croatia is derived from agriculture. Vitale et al., performed a detailed survey of the
existing water quality analysis for the Drava river in the period 1992 - 2000. Both nitrates and
nitrates had been increasing over the time, with nitrates often exceeding the guideline values.
In the period 2000 - 2003, at the vast majority (in the range of 64 – 74%) of the monitored
locations the water exceeded the prescribed nutrient content for the given water category. A
particular concern is the situation with the first category water. This includes all groundwater,
as well as spring and surface water that should be drinkable in its natural state or after
disinfection. In the period 2000 - 2003, 82 - 95% of locations containing such water exceeded
version of 14. 12. 2007; 141
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
the MAC for nutrients. In a recent survey, 7 out of 20 water samples taken from the springs in
Velebit Nature Park (area that is believed to be virgin nature) were found not to meet drinking
water criteria.
Croatian Waters measures the presence of DDT and lindane but does hardly any herbicide
monitoring. Of the water samples tested in 2000, 41% contained DDT and 12% lindane in
higher than allowed concentrations, while other organochlorinated pesticides remained within
the prescribed limits. The situation in 2001 was much better: DDT was found in 14% of
samples and lindane in only 5% of samples, most probably due to its ban in mid 2001. The
reports for 2002 and 2003 do mention problems with both DDT and lindane, but unfortunately
do not present aggregated data at the national level.
Following the actions that are related to the implementation of the WFD (and other water
directives) existing water quality monitoring will be adjusted/improved following the
requirements of the related EU directives.
Existing water monitoring consist of the monitoring network to control surface waters, and
groundwater. Wastewater discharges are controlled (monitoring) based on the water permits
(for discharging of the waste waters). Water permit is issued by Hrvatske vode (water
management agency) for each facility that is obliged (specified under the Water Act). In water
permit water quality parameters, MAQ29 and frequency of sampling is defined. Sampling and
analyzing is done by authorized laboratories (authorization is give by ministry of Agriculture,
Forestry and Water Management).
2.3.6.6. Soil
More than 90% of Croatian soils are subject to various degrees of erosion, but on
approximately 70% of the area this process is still within “tolerable limits”. The most critical
situation is in the region of central Istria where erosion rates as high as 100 - 200 tons of soil
per hectare of agricultural land have been recorded. The soil erosion from agricultural land in
Croatia is estimated from 3,8 million tons to 4,3 million tons.
The most fertile Croatian soil types (chernozem and eutric brown soil) have in the last hundred
years of cultivation lost 50 - 70% of soil organic matter and the humus content has dropped
from 4 – 6% to 1 - 2% on average. The most important Croatian agricultural soils have lost 2,1
– 2,8% of soil organic matter in the last 50 years or 2,5% of the SOM over the last thirty years.
Reclaimed soils have in the period of about 20 years lost humus levels from 6 – 10% to 4 – 5%
and most Croatian agricultural soils currently have a humus level of 1,5 – 2,5%.
Soil compaction is another pronounced problem in Croatian soils and the reported loss of
air/water porosity is in the range of 3 – 9%. Data on soil pollution with pesticides is scarce,
while heavy metals are reported to be within tolerable limits.
29
MAQ - Maximum Allowoble Quantity
version of 14. 12. 2007; 142
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
According to the article 4. of the Agricultural Land Law (OG 66/01, 87/02, 48/05 and 90/05 see
page 313) in order to protect agricultural land from contamination, controlling and permanent
monitoring of the level of contamination of agricultural land with noxious substances
(hereinafter refered as: permanent monitoring) has to be implemented including establishing of
the level of contamination of agricultural land ,permanent monitoring of the condition of
agricultural land, and establishing of information system for contaminated agricultural land and
establishment of the permanent monitoring has to be performed by Institute for Soil, there is an
intention to start the development through the EU funded (LIFE III PROGRAM) project
„Development of the Croatian soil monitoring programme with a pilot project“ (LIFE05
TCY/CRO/000105). The Project has to be implemented by the Croatian Eviroment Agency and
Faculty of Agronomy in close cooperation with the Ministry of Agriculture, Forestry and Water
Management, Institute for Soil and others.
2.3.6.7. Biodiversity
Croatia is famous for its nature and is among the biologically richest countries in Europe. At the
European level, it ranks second for the number of fish species, third for the estimated number
of invertebrates, fifth for number of reptiles and seventh for the number of vascular plants and
mammals. When the number of species is expressed in relation to land area, Croatia ranks
third for the number of plant species per area and fourth for the number of vertebrates per
area. Croatia has an unusually high concentration of endemic species, particularly in the Karst
(calcium carbonate limestone) region. Approximately 6% of the taxa of flower plants and algae
(of a total of four hundred and thirty nine) are endemic to Croatia. Out of 4.924 known plant
species in Croatia, 514 (10,4%) are endangered. But in spite of this, there are only 44
protected plant species, while an additional 92 deserve strict protection because they are
seriously threatened. It is estimated that Croatia harbours some 56.121 animal species (808
are endemic), of which only 39% have been identified.
The high biodiversity in Croatia is enhanced by its location in quite different climatic, (geo)
morphological and hydrological zones: the Danube floodplain, the Karst limestone zone, the
Dinaric Alps and the Mediterranean Coast with its unique islands. A substantial part of Croatian
biodiversity and many protected natural areas were devastated during the recent war and are
still suffering from this destruction.
Although many valuable species are in decline, some of these can still be found in agricultural
habitats. According to the Biodiversity Strategy, agricultural habitats harbour many rare and
threatened species. The wild plants include the Corn Cockle (Agrostemma githago) that has
disappeared from the areas of intensive agriculture (Slavonia and Baranja) and the Tulip
(Tulipa praecox), which is locally limited to vineyards of the island of Korčula. Oriental Knight’s
Spur (Conosolida orientalis) and the White Poppy (Papaver dubium ssp. lecoquii var.
albifolium) can be found only in the eastern part of Croatia. Croatian arable land and grassland
still host some birds of important European conservation status such as Corncrake (Crex crex),
Partridges (Perdix perdix) and Quails (Coturnix coturnix), Stone-Curlews (Burhinus
oedicnemus) (Krk and Pag islands), Shrike (Lanius minor) and Calandra Lark (Melanocorypha
calangra) (Mediterranean areas). Furthermore, some of the rarest Croatian breeding birds,
such as the Imperial Eagle (Aqueila heliaca), Lesser Kestrel (Falco naumanni), Redfooted
Falcon (Falco vespertinus) and Saker Falcon (Falco cherrug), as well as the Common
Redshank (Tringa totanus) which nests only in two places in Croatia also live in agricultural
habitats.
Croatian grasslands are habitats for numerous endangered plants, among which the most
important are the whole family of orchids (Orchidaceae) and exemplars of diverse other
families or genera such as Anemone, Arnica, Daphne, Dianthus, Edraianthus, Eryngium,
Gentiana, Iris, Lilium, Ligularia, Linum, Narcissus, Primula, Scilla, Veratrum, etc. The most
important rare mammals living on Croatian grasslands are hamsters (Cricateus cricateus) and
mound-building mice (Mus spicilegus) and among endangered species, the European ground
squirrel (Citellus citellus) and lesser mole rat (Nannospalax leucodon). Grassland habitats in
Croatia have a rich fauna of grasshoppers and butterflies. The majority of its 187 species of
daily butterflies can be found in meadow habitats. Two genera are particularly important: the
endemic subspecies and species of the arguses (genus Erebia) and the myrmecophyllous
version of 14. 12. 2007; 143
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
genus of large blue Maculinea. These are either endemic taxa or species endangered at the
European level.
During the last 50 years, a major part of Croatia's lowland grassland has been converted into
arable land. Extensive land reclamation and regulation of watercourses has left hardly any
marshy and wet grassland. They are now very extensively and only temporarily used for
grazing and mowing. If this trend continues, lowland grassland in Croatia will entirely
disappear. Formerly diverse swampy and wet grasslands (communities Caricetum,
Deschampsietum, Molinietum) are turning into less wet areas, predominantly communities of
tall oat grass (Arrhenatheretum). This results in a significant decline in biodiversity.
Croatian karst ecosystems are widely acknowledged not only because of their plant and animal
biodiversity, but also because their fragile hydrological and geological features (caves, lakes,
waterfalls, “underground rivers”, limestone phenomena, etc.). These subterranean and
terrestrial karst ecosystems are interconnected and dependent upon the maintenance of a
delicate balance between relief, hydrology, climate and vegetation. Karst regions account for
more than half of Croatia's territory.
The major cause of Karst grassland degradation is depopulation and changes in traditional
agricultural practices in mountainous regions of Croatia (Gorski Kotar, Lika, Velebit, etc.) where
cattle breeding used to be much more developed. Without grazing and regular mowing large
areas are increasingly overgrown by woodland. Similar processes are ongoing in
Mediterranean karst areas on littoral dry grassland and rocky pastures. Although due to the dry
and hot climate the natural succession here is rather slow, the long-term result is the same:
shrubby vegetation is suppressing valuable grassland species adapted to survive on sparse
soil or in holes between rocks with a shortage of water.
Protected natural areas in Croatia cover approximately 10% of the country (excluding territorial
seas) and are made-up of 450 protected sites. The best known among these are the eight
national parks (IUCN category II): Plitvice Lakes, Paklenica, Risnjak, Mljet, Kornati, Brijuni,
North Velebit and Krka and 2 strict nature reserves (IUCN category I): Hajdučki and Rosanski
Kukovi and Bijele and Samarske stijene. Several of these have been listed as internationally
valuable natural areas. The Plitvice Lakes are included in the UNESCO World Natural Heritage
List and the Velebit Mountain is in the UNESCO MaB (Man and the Biosphere) scientific
programme. Four areas are included in the Ramsar Convention List (Kopački rit, Lonjsko polje,
the lower Neretva and Crna Mlaka).
Appropriate agricultural management is essential for the biodiversity and wildlife of many
Croatian protected natural areas. However, most of these areas either are without significant
agricultural production or depopulated (or sometimes both). Therefore, agriculture-dependent
biodiversity is in decline. A particular threat is the absence of moving and grazing operations in
protected natural areas. Shrubs and other pioneering vegetation take over vast areas and thus
diminish the biodiversity of the rich meadows and pastures. Neglected or abandoned land or
land that has become afforested or overgrown by scrub decreases the biodiversity value of
grassland. Besides, such land is at risk of fire that can arise if excess biomass is not subject to
grazing pressure. Therefore, the forest area in Croatia has been gradually and continuously
increasing at the expense of species-rich grassland. This trend is worrying and has to be
stopped. The encouraging news is that the remaining (agricultural) population in protected
areas is becoming increasingly aware of the problem. The same goes for the management
teams in protected areas of nature. These have started to work on management plans and
prescriptions for specific agricultural measures.
Although the existing Croatian regulations limit the application of agricultural inputs, notably
pesticides and fertilisers, as well as some other agricultural practices in nature-protected areas,
they are not precise enough. Thus, their interpretation is quite liberal and monitoring and
control over farming protected areas is moderate.
Farmland, especially grassland and meadow orchards are very biodiversity rich habitats,
hosting numerous valuable species. Agriculture also shapes the landscape and influences its
quality and character.
The changes in farming practice that have taken place during the last decades are mainly a
result of intensification of farming. These comprise the specialization of production, a decrease
version of 14. 12. 2007; 144
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
in traditional farming, the use of high quantities of industrial fertilisers and plant protection
preparations, narrow crop rotations, changes in the types of crops grown, loss of field
boundaries, etc. Intensive farming increases environmental pressures including soil erosion,
loss of organic content, water pollution and a decreased number of wildlife species. In Croatia
both intensive and extensive agriculture have an adverse impact on landscape, habitat,
species and genetic diversity. Intensive use of agri-chemicals, as well as reduction of the
genetic pool caused by narrow crop rotations, lack of mixed-cropping and the use of limited
number of breeds and varieties have had a significant negative impact on biodiversity.
Drainage of wetlands (among most important in Europe) and their conversion to arable land, as
well as removal of hedges and trees from agricultural land has had a negative biodiversity
impact, too. Although Croatia has numerous local breeds and crop varieties, these have been
replaced by modern stock that is likely to better suit the demands of the modern market. Some
less favoured areas and less-productive breeds, and crop varieties have been neglected or left
out from production all together. All this has resulted in monotonous landscapes, and a
decrease in genetic, species and habitat biodiversity.
The narrow crop rotation that is practised by most Croatian farmers and co-operatives is
considered to have a negative impact on soil fertility and biodiversity, although small farms with
fragmented plots provide a good starting position for nature protection. In the period 1945 -
1990, huge grassland and wetland areas were reclaimed and converted to arable land. During
this operation a thousand kilometres of hedgerows, stonewalls and farm woodlands were
removed, that used to be part of the traditional Croatian landscape. Unfortunately, many
private farmers have also lost touch with nature and have eradicated valuable habitats and
landscape elements from their farms, too. Besides, some less favoured areas (e.g. terraces
and steep slopes), less-productive breeds, and crop varieties have been neglected or left out
from production all together. All this has resulted in monotonous landscapes of some regions,
and a decrease in genetic, species, habitat and landscape biodiversity.
Land use has been strongly influenced by the process of economic transition and the exodus
of the rural population caused by the war. The dissolution of a number of large state co-
operatives and the failure of the state-planned economy resulted in the abandonment of vast
areas of land.
Due to the lack of livestock both organic soil matter and grassland biodiversity is in decline in
Croatia. The stocking density is particularly low in areas of high natural value. This results in
reforestation and the loss of species-rich grasslands and the open landscape important for
migratory birds and many other species. Under-grazing also prevents the beneficial influence
of animals on biodiversity, such as species selective grazing, seed dissemination, re-rooting of
pasture flora, maintenance of soil organic matter, pest and disease control, etc. According to
some estimates, in the period 1992 - 2002, bush re-encroachment has taken place on
approximately 300.000 ha. However, this figure seems to be severely underestimated, as in the
same period more than 400.000 ha of arable land alone remained uncultivated and exposed to
invasion by bushes. Most animals in Croatia (with the exception of sheep) are kept in stables
all year round. This practice together with decline in the number of animals does not allow for
efficient utilisation of grassland. This has impoverished biological and landscape diversity,
threatening the existence of numerous plant and animal species associated with grassland
ecosystems and/or management practices. This problem is particularly pronounced in the
biodiversity-rich karst and mountainous regions.
Both globally and in Croatia, the period between 1991 and 2000 was the warmest decade of
the 20th century. Among ten warmest years five were recorded in Zagreb - Grič, three in Osijek
and Hvar and two in Gospić and Crikvenica. Including data for 2000 - 2004 it may be noted that
2002 falls under the 10 warmest years across the entire area of Croatia, the years 2001 and
2003 in all parts of Croatia excepting eastern lowland part, and the year 2004 on the island of
Hvar. In the period 1901 - 2000 the rise in the mean annual temperature recorded on the coast
was higher than on the mainland. The only exception is Zagreb - Grič where heat island effects
of urban environment cannot be excluded. The greatest contribution to warming in the coastal
part is from temperatures of the warm season: autumn on the island of Hvar and summer in
Crikvenica, while in the mainland areas the winter temperatures increased most.
Agriculture is an activity generally suffering most from the climate change. Given the natural
and geographical special features and diversity of Croatia, in climate change scenarios
account should be taken of the predominant way of using space in certain parts of Croatia.
The predicted increase in the annual number of active vegetation days (temperature above
5°C) in lowland areas of Croatia by 35 - 84 days and the extension of the period with a
temperature above 20°C by 45 - 73 days will have a positive effect on the increase in yields
and quality of agricultural crops.
The total amount, distribution, form and intensity of precipitation are highly important for the soil
water balance. If the soil is not irrigated during a dry period, the yields of crops grown will drop.
In Croatia droughts occurs every three to five years on average, and may, depending on the
intensity and duration, cut the yields of various crops by 20 - 92%. Severe droughts were
recorded in 1992, 1995 and 1998, and those of the years 2000 and 2003 were proclaimed
natural disasters.
Climate changes affect the physiology and interactions between plants causing changes in
their distribution areas (areals) in terms of increasing or decreasing the area of a species or a
community and shifting the areal (horizontal and vertical migration). The migrating speed of
areals is estimated at 2,1 km/year under a milder and 3,9 km/year under the extremer scenario.
The shift of vegetation belts of specific climate zones is expected to be accompanied by the
disappearance of poorly adaptable species, while the invasion dynamics of allochthonous
species may increase and those more aggressive may force the autochthonous taxa out of
their natural habitats.
The success of adapting to life in new habitats resulting from climate changes is hardly
predictable. The ideal case of the species survival, including a migratory shift, is only
sometimes realistic due to isolated ecological niches (insular populations, types of
watercourses, etc.), and natural and artificial barriers.
Aquatic and wetland habitats are especially important at the national and international level.
They provide and/or participate in a number of critical ecological functions such as water
regime regulation and creation of the habitat for a number of stenovalent plant and animal
species. Since particularly dependent upon the water regime, wetland habitats will be
vulnerable to changes in the amount and distribution of precipitation, including secondary
effects on related species.
On the basis of Air Protection Act (NN 178/04), the Government of Croatia has enacted
Regulation on Monitoring of Greenhouse Gas Emissions in Republic of Croatia (OG 1/07), in
December of 2006. Regulation regulates establishment of the National system for the
estimation and reporting on anthropogenic gas emissions by sources and removal of
greenhouse gas chasms which are not being monitored on the basis of Montreal Protocol.
Monitoring of greenhouse gas emissions is conducted through the following components:
National system according to the Decision 19/CMP.1; National registry of greenhouse gas
emissions; Report on policy and measure for mitigation of climatic change effects
implementation; Report on projections of greenhouse gas emissions and National report
according to the United Nations Framework Convention on Climate Change (UNFCCC).
On the basis of Air Protection Act, in October 2007, a proposal of Greenhouse Gas Emissions
Trading Scheme Regulation was created. By this Regulation shall be established trading
system rights on greenhouse gas emissions in Croatia, in accordance with the Directive
version of 14. 12. 2007; 146
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
2003/87/EU. Regulation will be applied starting from 2010, when the system will be connected
with trading system rights on greenhouse gas emissions of European Union.
Croatian Parliament has adopted the Kyoto Protocol Validation Act with to the United Nations
Framework Convention on Climate Change (OG - International Agreements, No. 5/07) on April
27, 2007. By Kyoto Protocol Ratification the Republic of Croatia has as a party from Protocol
Appendix B accepted the obligation to limitate quantitatively greenhouse gas emissions in the
period from 2008 to 2012 to 95% from the emission quantity in the basic 1990.
In January 2007, the National Strategy for UNFCCC and Kyoto Protocol Implementation with
the Action Plan draft has been finished and issued in June of 2007. This document is integral
part of the Plan for air protection and air quality improvement in the Republic of Croatia for the
period of 2008-2011, and its enactment is planned for the other half of 2007.
Main goals of the implementation of project LIFE04 TCY/CRO/029 „Qualification for
implementing the United Nations Framework Convention on Climate Change and Kyoto
protocol in the Republic of Croatia (January 2005-October 2007) were establishment of
institutional, legislative and organizational qualifications, and improvement of upbringing,
education and public awareness of climate changes.
development will commence in the course of this year and the next year (the nature parks the
Lonjsko polje and Vransko Lake, possibly other nature parks as well). The sources of funding
for all the aforementioned management plans will be co-funded by international projects
(GEF/WB, EK-LIFE and PHARE). It is envisaged that management plans will be in place in
respect of all 18 national parks and nature parks by the year 2010. Management plans have
also being developed in respect of two small potential NATURA 2000 sites, which have been
financed by the European Commission's CARDS programme.
Article 36 of the Nature Protection Act (OG 70/05, see page 319) prescribes obligatory
assessment of acceptability of planned projects to nature in respect of the sites of the National
ecological network, which also includes potential NATURA 2000 sites. The mechanism will be
prescribed in detail by the Ordinance on assessment of acceptability of planned projects to
nature, which is now in the final stage of adoption.
this stage to make sound estimates for the AE premiums. A set of agricultural GM calculations
is available in a publication of the Croatian Agricultural Extension Service (CAEI). These
calculations are not the result of FADN (Farm Accountancy Data Network) or systematic
surveys but of a theoretical assumption of the economic results that could be obtained if
Croatian farmers implemented good management practices and applied optimally agricultural
inputs. However, their value is in existing methodology of calculating incomes and costs of
agricultural production, which can be adjusted and used for the purpose of AE premiums
calculations. Trained experts of CAEI will be engaged in the process of establishment of GM
calculations and premiums regarding specific locations (pilot areas) and AE measures included
in IPARD programme.
The Faculty of Veterinary Medicine (FVM) performs scientific and educational activities, as well
as clinical and terrain diagnostic tasks, certain laboratory analyses for the official veterinary
control, it also evaluates health correctness and quality of the food and of other products of
animal origin.
The Centre for Reproduction in Livestock Breeding (CRLB) of the Republic of Croatia is a body
responsible for the transfer of knowledge and technology in the field of reproduction, breeding
and increasing the animal fertility, as well as for the distribution of animal markings needed for
animal identification and registration.
Croatian Veterinary Chamber (CVC) is a professional veterinary association made up by the
veterinary medicine doctors; it is responsible for issuance and extension of work permits
(licenses), planning and surveillance of the systematic and continuous professional training of
its members.
Authorized veterinary organizations are legal persons with public authorities. In Croatia there
are 161 authorized veterinary organizations. Such organizations perform animal health
protection, as well as veterinary health checks and controls in accordance with the Veterinary
Act.
Veterinary inspection of the Republic of Croatia is organized by the principle of vertical
subordination. Inspections at the central level are performed by the state veterinary inspection
of the Inspection Department of the Veterinary Directorate within the MAFRD.
At the local level the inspections are performed by the county veterinary inspectors, i.e. by the
city veterinary inspectors. The organization of the county veterinary inspection follows the
administrative division of the Republic of Croatia in a way that a Veterinary office has been
established in each county having, as a rule, one or more branch offices. The City of Zagreb,
as a separate administrative unit, has its own separate Veterinary office. Veterinary and health
checks and controls in facilities under veterinary-health surveillance are performed by
authorized veterinarians. All inspectors (state, county/city, border inspectors) are civil servants,
while the authorized veterinarians are employees of authorized veterinary organizations in
private ownership.
30
Regulation of the Government of the Republic of Croatia concerning the establishment of the Croatian
Livestock Centre, Official Gazette number 64/94, 11/97, 47/99 and 78/03
version of 14. 12. 2007; 150
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
testing of all breeds and species of domestic animals; breeding and selection data processing
and registered animals breeding values assessment; issuance of certificates of origin for all
bred animals on the market; management and coordination of the breeding programme for
each breed; protection and preservation of all domestic and protected breeds and species in
the Republic of Croatia; support to establishment of livestock breeder associations; bred animal
trade organization; livestock services organization; production of certain species and breeds
with the aim of breeding programme implementation and breeding results and selection
measures control; cooperation with scientific institutions in promotion of breeding and selection
measures and in improvement of genetic quality of all breeds and species; processing of
applications for stimulation of the livestock production and administrative control of the
implementation; quality testing of livestock products, i.e. fresh uncooked milk in the central
laboratory in Križevci, and the assessment of bodies and halves in slaughter houses.
sugar to special types of wines; bring decisions about circulation of grape, must and other
grape and wine products and fruit wines; issuing certificates about wine and other grape and
wine products, and fruit wine quality imported or exported; issuing certificates and opinions
about wine and other grape and wine products, and fruit wine quality in inspection.
For the purpose of monitoring efficiency and state in viticulture and oenology the Institute is
obliged to submit reports about performed activities at least twice a year to the Ministry and
registration working body of the Croatian Parliament.
Wine and other grape and wine products in circulation at home market and during import and
export, have to have control stamps, i.e. ribbons issued by the Institute.
Croatian Institute of Viticulture and Oenology is a reference laboratory for physical and
chemical analysis of must, wine, fruit wine and other grape and wine products which are made
because of the inspection. It is also authorized for implementation of organoleptic evaluation of
must and wine.
breeding, fruit growing, vineyard farming and gardening, plant protection, crop husbandry,
agro-economics, agricultural mechanisation, fish farming, rural development, food and organic
agricultural production), and employees who deal with economy, finances, informatics, legal,
publishing and other administrative affairs.
CAEI has its sections in all counties and in the City of Zagreb. Each section has several offices
(branch offices) and employs from 4 to 17 agronomic experts.
From the very beginnings of the existence of the Council for Applied Agricultural Research the
CAEI employees have participated in the conduction of such researches. Implementation
bearers are scientific and other institutions and subjects which have also participated in the
proposals and evaluation of projects proposed for a particular research.
At the same time, CAEI organizes lectures, presentations and courses for the education of
farmers and its other clients throughout the year.
CAEI has very important role in informing, organizing promotional activities and providing
assistance to agricultural producers, and other subjects in agricultural business, in
implementation of agricultural policy measures in Croatia. It also conducts promotional
activities related to adjustment of agricultural sector in pre-accession period (pre-accession
programmes) for Croatia. Therefore, it was actively included in informing, promotion and
implementation of SAPARD programme in the following way:
- Training of trainers – education of CAEI employees as trainers who took over dissemination
of information to potential beneficiaries;
- Workshops / lectures – were organized at county and local levels, designed for local self-
government representatives and potential beneficiaries.
- Events (round tables, workshops, lectures, etc.) on invitation;
- Media – advertising and informing public through press, radio and television
- Website of CAEI
- Promotional material – promotion and distribution of promotional materials to final
beneficiaries.
CAEI departments according to their specialties, directly cooperate with MAFRD in organizing
and implementation of information activities related to national agricultural policy measures,
and to preacession programmes.
agricultural- food products and inputs in agriculture for the needs of European Commission and
other international institutions; cooperates with international institutions in implementation of
projects for improvement of market information system in agriculture.
(iii) Data on the level of educational attainment, which represents a significant factor for
regional development, additionally reveal the level of disparities within the country. Whereas
the Croatian labour force is relatively well educated and trained, very significant disparities
exist at the level of counties. The City of Zagreb has the highest proportion of inhabitants with
higher education compared to total population (16,8%); this proportion is five times higher than
in the county with the worst ranking i.e. the smallest share of people with higher education
(Krapina - Zagorje county, 3,2%). Most people with higher education live in larger cities, which
offer more possibilities for them in terms of employment. The concentration of educated people
in the City of Zagreb is outstanding; it attracts almost twice as many highly educated people
than any other county.
(iv) The unemployment rate across counties differs significantly. On the one hand there are the
most developed counties which show relatively low unemployment rates compared to the
Croatian average (which in 2004 amounted to 16,8%), whereas on the other hand the least
developed counties show high unemployment rates. The range lies between the Istria county
(6,6%) and the City of Zagreb (10,3%) with the lowest unemployment rates on one side, and
the Vukovar - Srijem county (28,4%) with the highest unemployment rate on the other side.
change
GDP per capita PPP in 2003,
Share of population
with high education
GDP per capita PPP
In 2004 Unemployment
Population
Population density
education
census education
County
2001/1991 (%)
Inter-census
(%)
Census
census
census
(km2)
=100)
2001
2001
2001
2001
EUR
(RH
(%)
Zagreb
3.060 309.696 101,2 7.172 74,1 110,58 4,9 12.379 4,3 13.463 10,3
County
Krapina -
1.229 142.432 115,9 6.976 72 96,45 3,2 3.816 1,3 5.852 10,7
Zagorje
Sisak -
4.468 185.387 41,5 7.670 79,2 74,79 4,6 7.084 2,5 18.789 24,9
Moslavina
Karlovac 3.626 141.787 39,1 7.596 78,4 79,08 5,1 6.095 2,1 13.104 22,4
Varaždin 1.262 184.769 146,4 9.037 93,3 98,76 4,9 7.522 2,6 10.419 13,5
Koprivnica
1.748 124.467 71,2 9.595 99,1 96,99 4,1 4.235 1,5 7.899 17,2
- Križevci
Bjelovar -
2.640 133.084 50,4 7.451 76,9 93,37 4 4.330 1,5 11.395 22,8
Bilogora
Primorje -
Gorski 3.588 305.505 85,1 11.285 116,5 95,47 9,9 25.927 9 17.626 12,5
Kotar
Lika - Senj 5.353 53.677 10 10.172 105 65,06 3,8 1.701 0,6 3.468 16,8
Virovitica -
2.024 93.389 46,1 7.356 76 90,84 3,5 2.678 0,9 9.706 26,8
Podravina
Požega -
1.823 85.831 47,1 7.051 72,8 87,49 4 2.765 1 5.494 17,5
Slavonia
Brod -
2.030 176.765 87,1 5.620 58 102,56 4,2 5.987 2,1 15.864 25,9
Posavina
Zadar 3.646 162.045 44,4 7.795 80,5 76,78 6,7 8.840 3,1 11.818 18,2
Osijek -
4.155 330.506 79,5 7.402 76,4 91,62 6,3 17.051 5,9 32.397 23,9
Baranja
Šibenik -
2.984 112.891 37,8 6.766 69,9 76,79 5,6 5.273 1,8 10.850 24,7
Knin
Vukovar -
2.454 204.768 83,4 5.742 59,3 90,28 3,9 6.439 2,2 20.175 28,4
Srijem
Split -
4.540 463.676 102,1 7.253 74,9 98,48 8,5 32.028 11,1 40.712 20,9
Dalmatia
Istria 2.813 206.344 73,4 12.863 132,8 101,4 7,3 12.663 4,4 6.313 6,6
Dubrovnik
1.781 122.870 69 8.584 88,6 98,56 8,2 8.195 2,8 8.200 15,7
- Neretva
Međimurje 729 118.426 162,2 7.699 79,5 100,97 3,7 3.536 1,2 7.257 15,3
City of
641 779.145 1.215,50 17.301 178,7 100,82 16,8 109.323 38 38.936 11
Zagreb
TOTAL 56.594 4.437.460 78,4 9.684 100 93,89 7,9 287.867 100 309.735 16,8
Source: CBS, 2003 - 2004
31
Year 2003 – great drought
version of 14. 12. 2007; 156
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Employment in agriculture/Total
% 4,0 5,2 7,3
employment
tons per
Wheat 5,3 4,8 2,9
ha
tons per
Potatoes 33,9 26,4 5,9
ha
tons per
Sugar beat 57,7 53,9 24,8
ha
tons per
Rape 2,9 2,6 1,8
ha
Sources, DZS, EUROstat, FAOstat Analysis: MAFWM, 2004; Average exchange rate HRK/euro in 2003: 7,56
Data in above table show that where inequities are present they are quite extreme (2 – 3 times
higher or lower compared with EU) and elsewhere they are minor or not existing.
Inequities between Croatia and EU member states are mostly expressed regarding GDP per
capita and unemployment rate which is almost doubled in Croatia compared with EU. Also
population density in EU is almost twice as high than in Croatia as well as waste generation.
Water resources is one of the few comparative strength for Croatia where is shown that Croatia
has three times more renewable water resources than EU-25.
Significant inequities can be also seen in the agricultural production, where the average farm
size and average yields in plant and milk production are much lower in Croatia.
Same applies for used agricultural area in total area where Croatia has 19% where in EU-25,
42% can be seen.
and participation in decision making process, lobbying, organization of local community), age
and educational structure of the population (the percentage of the old people who are not
prone to change compared to the young entrepreneurs), the consciousness of cultural heritage
and traditional values;
Economic factors – e.g. distance to the market, especially larger city centres, structure and
organization of local markets, access to the basic infrastructure, financial strength of local
budgets, economic efficiency of enterprises, entrepreneurship, etc.;
Institutional factors – e.g. laws and regulations (including local taxation) and their enforcement,
degree of local participation in a decision-making, efficiency of local administration, etc.
Strengths Weaknesses Opportunities Threats
Development of diverse
Many abandoned rural and Renewable energy Lack of reliable statistical
systems of agricultural
agricultural areas resources availability data on rural areas.
production
Underdeveloped treatment
Low labour cost of waste water and waste
management
Croatia has
adopted/ratified major AE is not a primary interest Lack of understanding and
Creation of brands from AE
international conventions and top priority for the support for AE by influential
managed farms/regions
on environment and stakeholders societal groups
biodiversity
Management requirements of
Agriculture getting more
Determination of NATURA Decades old cadastre data NATURA 2000 sites favour
specialised and
2000 sites in progress and Land Books implementation of AE
industrialised
measures
No tradition of on-farm
Many local varieties and
nature management
breeds
practices
Source: MAFWM – DSDRA, 2007
BEEF
Strengths Weaknesses Opportunities Threat
Appearance of diseases
Unutilized capacities on Unfavourable farm structure Potential for the increase of
which can influence
family holdings for fattening (economy of value) and competitiveness and quality
domestic consumption and
of beef insufficient specialization improvement
export
Meat is product which can Insufficient level of
obtain high prices, which compliance with Use of unutilized grass Quality supply at lower
can influence total income environmental and hygiene resources prices from foreign markets
on farm standards
Non-compliance with
(great) potential for further
Significant grain production Insufficient level of manure relevant Community
differentiation of products to
for production of fodder management and manure standards at the date of
offer a wider assortment to
concentrate storage capacity Croatian accession to the
consumers
EU
Croatia already exports Short production cycle in
Expected increase in
baby beef, which achieves a intensive fattening resulting slow land consolidation
consumption of domestic
high prices on foreign in too early slaughtering of process
beef products
markets animals at lower weight
Significant grain production Increased market Due to higher yields per cow
Insufficient level of extra
for production of fodder opportunities if Community and restructuring the sector,
quality milk
concentrate standards are met there are less cows
Non-compliance with
Insufficient compliance with relevant Community
Existance of expert support Regionally recognised dairy
animal welfare and rearing standards at the date of
for dairy farmers products (cheese)
methods Croatian accession to the
EU
Producers non - Possible increased income
Consumer preference for
competitiveness on small due to decrease in
domestic dairy products
production units production costs.
Unfavourable farm structure
Foreign direct investments
and insufficient
in the dairy industry
specialization
Insufficient use of grassing
and low quality of Professional training for
voluminous, winter fodder dairy producers is available
(hay and silage)
Readily available
Low competitiveness on the
labourforce at affordable
open market
costs
Lack of raw milk in a quality
needed by the processing
sector
Insufficient level of
education of small sized
farmers in the field of
production and
management)
FRUITS
Strengths Weaknesses Opportunities Threat
VEGETABLES
Strengths Weaknesses Opportunities Threat
Insufficient level of
Experience and tradition in Potential for the increase of Lower level of quality due to
cooperation between
the production of grapes competitiveness and quality outdated processing
producers, processors and
and wine improvement equipment
tradesman
Non-compliance with
Potential for maintainance of
High level of knowledge on High market prices of relevant Community
viable middle sized
modern equipment and domestic wine due to high standards at the date of
producers in compliance
technology production costs Croatian accession to the
with Community standards
EU
Potential for the decrease of
Certain number of quality Lack of producer
production costs trough
wine producers organizations
modernization of wineries
Clean environment Weak infrastructure Increase product quality Insufficient producer skills
slow development of
Sector attracts foreign
High market demand Unorganised market required infrastructure on
investments
islands
Long tradition and Feed for marine fish farming Employment of island
Insufficient bank support
experience exclusively from import population
Availability of competent Low unit yields in freshwater Increase of domestic Slow development of
manpower aquaculture consumption marketing strategy
3.1. N ATIONAL
AID SYSTEM FOR
AGRICULTURE AND RURAL DEVELOPMENT
The legal basis for the allocation of the state aid in agriculture includes various provisions and
their financing is determined by the state budget and local budgets of the regional (counties)
and local (municipality and cities) self-governments. The Croatian Government does not have
the legal basis for monitoring aid to agriculture financed from local budgets.
The majority of the national agricultural policy is implemented through two Acts – the
Agriculture Act and the Act on the State Aid in Agriculture, Fisheries and Forestry. MAFRD is
the body responsible for their implementation.
The Agriculture Act (OG, 66/01, 83/02) is the umbrella act that governs the overall field of
agriculture by incorporation the existing legislation and areas that have not yet been directly
regulated. The Act sets out the objectives and measures of agricultural policy, defines
beneficiaries, institutional aid, agricultural policy makers, monitoring and reporting in agriculture
as well as administrative and inspection control.
The Act on State Aid in Agriculture, Fisheries and Forestry (OG, 87/02, 117/03, 82/04, 12/05,
85/06, 141/06) provides for four different state aid schemes intended for different target groups
or aid beneficiaries. The schemes are:
The said models have the following key goals of the agricultural and rural development
policies:
restructuring of the agricultural aid towards the work-intensive production and a further
strengthening of the role of livestock farming, wine-growing and fruit-growing;
better and more diversified promotion of income aid as the main type of support to numerous
non-commercial farms;
more dynamic strengthening of the share of aid to rural development investments and
programmes within the overall aid system, which shall influence a more transparent and
efficient aid, especially to the commercially most important farms, as well as the sustainable
development of the entire agricultural area;
a strict compliance with budget limitations, the adopted international obligations (in particular,
those within the WTO system) and a further gradual harmonisation with the CAP.
This Act distinguishes commercial and non-commercial agricultural farms. Commercial farms
fulfil the conditions of models: direct payments, support to capital investment and rural
development scheme, while non-commercial farms fulfil the conditions for models: income
support scheme and rural development scheme.
The aid system is strictly related to the creation of the Register of Agricultural Holdings. The
said Register shall be the central statistical database for agricultural farms. The creation of this
Register, which shall have to include all agricultural farms that sell their products on the market
and lodge requests for aid to agriculture, shall lay the basis for the introduction of different
measures for different kinds of users. The following step shall be a further development and
harmonisation of the Register with the Integrated Administration and Control System (IACS)
which is the control system related to direct payments for agriculture in the EU and that the EU
member states apply in managing the Common Agricultural Policy (CAP).
MAFRD is also responsible for the allocation of state aid for certain programmes based on
secured funds in the state budget and special decisions of the minister.
Special agencies of the Croatian Government (Croatian Bank for Reconstruction and
Development - CBRD, Croatian Agency for Small Business - CASB) allocate aid to the
economy in general, therefore including agriculture, under special programmes in accordance
with the several horizontal regulations (Investment Support Act, Act on State Support for Small
Entrepreneurship, Islands Act, Act on Areas of Special State Concern, Act on Mountainous
Areas, Regional Development Fund Act). It concerns crediting infrastructure and economic
projects and the issuance of guarantees.
There are also specific programmes adopted by the Croatian Government (beef, pigs,
permanent crops, vegetables) and implemented by CBRD and CASB. These programs consist
of financing investments through loans with interest rates lower than commercial ones.
All aid to agriculture stemming from measures of the national policy is financed from the state
budget, which is adopted each year by the Croatian parliament. The state budget determines
revenues and expenditures by budget users and particular activities (aid programmes). The
MAFRD budget is constantly increasing (see Table 3-1)
Pursuant to the Act, the Government is to determine quotas (maximum aid amounts) for the
monetary support model in the current year. In 2004 the Government determined quotas for the
first time as one of the instruments limiting the excessive budget spending, taking into account
the distribution priorities within each model and the timely and just distribution of finances in
cases in which the initially envisaged finances exceed the reported users’ needs. Furthermore,
the Croatian Government and the competent institutions shall conduct an additional check-up
of budget spending for aid to agriculture, in order to apply gradually the Community standards.
It is necessary to establish an administrative structure that will be responsible for the
authorisation and monitoring of state aid in agriculture in the Republic of Croatia in accordance
with EU regulations, notwithstanding the legal basis for their implementation or financial
sources (state or local budgets). As such, it is necessary to establish a special Unit for State
Aid within the MAFRD. Such an office would represent a liaison between the Republic of
Croatia and the European Commission (EC) in the area of state aid in agriculture.
In addition to establishing the administrative structure, it is necessary to standardise the
conditions for allocation of different types of aid in agriculture with those of the EU, which
results in a need to amend the Agriculture Act and Act on State Aid in Agriculture, Fisheries
and Forestry.
When looking at certain production types, it can be noticed that cereals and oil crops had the
highest share in total amount of direct payments from 2001 – 2005, although it has been
continuously decreasing. Milk and dairy cows sector had the highest growth (3,6 times higher
in 2005 compared with 2001). Continuous growth can be also noticed in the fruit, viticulture and
olive sectors in the last two years (see Table 3-3).
Increased amount of paid subsidies through production subsidy scheme in mentioned sectors
can be explained by the Government agricultural policy whose objective is development of
these sectors in order to become more competitive on the global market.
The aid to organic production is part of the production subsidy scheme. As a rule, the subsidies
for organic production are about 30% higher than the same subsidies in conventional
production. Their amount has also been increasing and almost doubled in 2005 compared with
2001 (see Table 3-4).
Payments for organic production account for 0,16% of all direct payments.
version of 14. 12. 2007; 170
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Plant
1.887.343 257.834 3.109.198 424.754 3.605.750 492.589
production
Cereals (wheat,
12.181 1.664 986.712 134.797 1.199.137 163.817
rye, triticale)
Other fodder
0 244.099 33.347 214.301 29.276
cereals
Other industrial
0 0 0 0 21 3
plants
Oil plants
(sunflower, oil 5.187 709 9.373 1.280 316.332 43.215
rape)
Tobacco 0 0 0 0 0 0
Agricultural
0 40 5 38.484 5.257
seeds
Planting
0 0 0 0 0 0
material
Vineyards -
11.642 1.590 12.198 1.666 9.909 1.354
annually
Orchards I, II
group and hop - 57.915 7.912 107.928 14.744 92.368 12.619
annually
Strawberry -
0 0 0 0 3.545 484
annually
Lavender -
1.638 224 330 45 0
annually / oil
Livestock
0 0 319.528 43.651 76.588 10.463
farming
Institutions responsible for the implementation of the production subsidy scheme are listed in
Table 12-8 according to the type of aid.
and Rural Development awards investment grants to farmers to whom a commercial bank has
granted a commercial loan for investments in agriculture. This model is one of the pillars of the
agricultural policy reform, which aims at developing the commercial private agricultural sector.
The aid to capital investments is granted for medium-term loans (minimum two years) and
long-term loans in agriculture. The minimum loan amount, for which a capital investment is
granted, accounts for 10.928 EUR (80.000 HRK).
The investment aid may be granted to both physical and legal persons: commercial agricultural
farms, users of fishing licences or subjects registered for forestry-related activities.
The request for aid for capital investment may be submitted after the applicant has already
carried out the investment during the year in which he received the loan, not later than 28
February of the following year for loans obtained in the previous year.
The maximum support per agricultural producer may amount to 34.153 EUR (250.000 HRK) in
the year the loan was used, with the exception of investments done according to the Operative
plan for the implementation of the programme for cattle-breeding (see chapter 3.1.5.1), where
the maximum support may amount to 68.306 EUR (500.000 HRK) annually per agricultural
producer.
Investment aid may be granted for:
• the purchase of young female breeding animals and other breeding animals in
livestock farming;
• the purchase of male breeding animals in livestock farming and registered fish species
for breeding or aquaculture selection;
• investments for the cultivation of permanent plantations;
• the cultivation of forests;
• building and equipment of facilities for agricultural production and aquaculture;
• restoration of agricultural land;
• the purchase of fishing boats and machines for agriculture, fishery and forestry;
• building and equipment of warehouses and facilities for the processing of agricultural
products and fish;
• the purchase of private agricultural land for the purpose of land consolidation.
Table 3-5: Overview of the implementation of the model of capital investments in 2003
No. Amount of the requested
Purpose Amount of the loan granted
of investment aid
requ
HRK EUR HRK EUR
ests
Purchase of
the basic
flock/herd in 444 40.810.014,39 5.575.138,58 7.112.002,88 971.585,093
livestock-
farming
Cultivation of
permanent 19 3.795.375,09 518.493,86 645.213,77 88.143,9577
plantations
Cultivation of
0 0 0,00 0 0
forests[1]
Building and
equipment of
facilities for
295 119.230.683,88 16.288.344,79 15.721.510,87 2.147.747,39
agricultural
production and
aquaculture
Restoration of
agricultural 33 6.114.909,33 835.370,13 1.357.589,59 185.463,059
land
Purchase of
fishing boats
and new
equipment and
721 178.902.373,64 24.440.214,98 29.062.600,89 3.970.300,67
machines for
agriculture,
fishery and
forestry
Building and
equipment of
facilities for
storing and
86 1.600.000,00 218.579,23 6.643.494,66 907.581,238
processing of
agricultural
products and
fish
Purchase of
private
agricultural
land for the 18 1.723.814,60 235.493,80 430.853,65 58.859,7883
purpose of
land de-
fragmentation
Combined
274 64.377.017,35 8.794.674,50 14.719.093,17 2.010.805,08
uses
In 2003, 1.890 requests were lodged for this benefit model. According to the given requests,
the total value of used loans amounted to 56,91 milion EUR (416,55 million HRK), for which
10,35 milion EUR (75,69 million HRK) of aid have been requested.
Other requests were processed, approved and paid in 2003 and during 2004. The total amount
of aid of 8,75 milion EUR (64,07 million HRK) has been distributed among 1.521 applicants.
National measures for capital investments are oriented towards the increase of the production
profitability, efficiency and competitiveness. They apply only to commercial agricultural farms
(mostly small family farms), which have used the possibility of obtaining a commercial loan for
farm investments.
at least one member is retired and receives the agricultural pension, or is unemployed,
or makes contributions to the agricultural pension fund, but does not fulfil the
conditions for the first group, that is the age criterion,
the beneficiary receives 683 EUR (5.000 HRK) annually per farm as a lump sum.
The request for income aid is submitted to the local state administration offices in single
counties (including the City of Zagreb), which are directly included in the administration of this
model, starting from 1 December to 31 December of the following year. The said offices collect
the requests, process them and decide whether an applicant is eligible for support or not. In
2003, 2.500 individuals lodged 2.262 requests for agricultural farms and 1.625 farms, that is
1.945 individuals were granted the right to income aid in the total amount of 1,9 milion EUR
(13,93 million HRK).
Table 3-6: Overview of request for income aid in 2003 per county
No. of No. of Amount
No. of
County reque perso
farms
sts ns HRK EUR
Primorje - Gorski
110 52 45 369.000 50.410
Kotar
Sisak - Moslavina 2 0 0 0 0
Virovitica -
269 202 173 1.454.400 198.689
Podravina
No of applications 27 42 78 61
Except above mentioned funds for agricultural associations, additional funds were allocated
through public bidding for specific programmes:
• co financing associations of producers and/or processors of autochthons Croatian food
(11 programmes, 305.000 HRK total funds, aprox. 41.667 EUR)
• co financing machinery rings associations (4 programmes, 1.500.000 HRK, aprox.
204.918 EUR).
In 2006, through public bidding funds were awarded to the agricultural cooperatives as well:
• establishment of new agricultural cooperatives (28 programmes, 1.746.500 HRK total
funds, aprox. 238.593 EUR)
• development of existing cooperatives (77 programmes, 1.650.000 HRK total funds,
aprox. 225.409 EUR)
• co financing of salary for the professional cooperative managers (17 requests,
1.449.100 HRK total funds, aprox. 197.964 EUR)
Table 3-8: Overview of aid for agricultural secondary schools, 2001 - 2005
Year 2001 2002 2003 2004 2005
No of applications 5 6 12 17 16
Table 3-9: Overview of autochthon and protected breeds aid request, 2001 - 2004
Year 1999 2000 2001 2002 2003 2004
Buša - cattle 2 17
Turopolje pig 1 1 1 1 1 4
Istrian sheep 27 21 33
Lika Pramenka 4 36 23
Dubrovnik Ruda 20 17 16
Cigaja sheep 2 19 28
Međimurje horse 19 12
In period 2001 – 2004 total 4,43 milion EUR (32,4 million HRK) was paid for autochthon and
protected breeds (see Table 3-10).
Table 3-10: Overview of subsidies paid for autochthon and protected breeds, 2001 - 2004 in
HRK and EUR
Year Total paid per year
HRK EUR
Table 3-11: Overview of aid for marketing preparation of agricultural food products, 2001 -
2006
Total amount of aid No of Average amount per project
Year project
HRK EUR s HRK EUR
The programme “Marketing preparation of agricultural food products is mostly oriented towards
research, while it has very limited practical effects. Furthermore, it encompasses a small part of
marketing activities and it has a low number of users.
The MAFRD, DRD manages and is responsible for the implementation of this programme.
favourable loans with a 10-year payback period, 4% interest rate and 2 years before the first
instalment, which is guaranteed by the CBRD. CASB shall give guarantees for 50% of the loan,
while the remaining part of the guarantee shall be investment itself. MAFWM shall participate
with a subvention accounting for 25% of the loans which shall be granted by banks. The
subvention may amount to a maximum of 68.306 EUR (500.000 HRK). The CAEI is in charge
of the implementation of the programme.
In most modern agricultural countries the livestock farming is the most developed agricultural
sector and is often used as a development measure, while in the Croatian agriculture livestock
rearing and dairy production have a strategic importance.
The current situation in the livestock rearing sector shall not provide for a sufficient
development level in the following period. Small production units (in average 3 cows per farm)
and a low milk production level (around 2.600 litres per cow) may not ensure competitiveness
of the livestock farming sector on the open market.
The MAFRD shall provide for 25% of the investment up to a maximum amount of 136.612 EUR
(1.000.000 HRK) from the budget intended for capital investments scheme.
Currently, the programme is fully operative through local offices of the Croatian Livestock
Centre.
provide for, which was therefore compensated by import. The consequences thereof are still
visible today since Croatia imports a large part of the required quantity of fresh and tinned
vegetables.
Therefore the Government of the Republic of Croatia aims at initiating a long-term strategic re-
orientation towards a significant increase of land used for vegetable-growing in order to ensure
a vegetable production in open and closed areas which would satisfy the country’s needs and
even export, with a contemporary modernisation of technologies for production, packaging and
warehousing of vegetables, as well as a higher product quality. In accordance with the said
goals, the Government of the Republic of Croatia during the session of 22 January 2004
adopted the Conclusion entrusting the MAFRD with the task of creating and delivering to the
Government the Operative programme for the development of the vegetable-growing sector.
During the previous period the creation of irrigation plans has began in 19 out of 21 Counties,
four of which have been approved, seven are in the adoption process, while the rest is still in
the creation phase. All plans should be completed during 2007.
On the basis of the National project of irrigation and management of agricultural land and water
four national pilot projects have been devised. The creation of project documentation on the
level of ideational and main projects and the procurement of appropriate location and
construction permits have been started on behalf of known users and irrigation locations. The
restoration of the existing irrigation systems began before the completion of the required
technical documentation and the procurement of necessary permits.
Within 2010 the planned investment in irrigation systems shall amount to 318.500.000 EUR
and within 2020 591.500.000 EUR. The construction of the water-supply and the distribution
network shall be financed by the Croatian Government, while the financing of the irrigation
system shall befall on the final user. In that manner, the total state investment within 2010
should amount to 213,4 million EUR, or 396 million EUR within 2020.
It is important to define the end users of the National project of irrigation and management of
agricultural land and water, since they must guarantee to make use of the constructed systems
and assume rights and obligations arising from it, which shall also be regulated by the Act.
Table 3-12: Overview of the aid to insurance per years and counties (2003 - 2005)
Aid to insurance
Fish-breeders
began in 2004, while the total value of the project amounts to 105,45 million EUR (769.814.000
HRK). The Council of European Development Bank has contributed with 26,5 million EUR
(193.364.371 HRK). The main goal of this project is the improvement of the overall life quality
on islands and the creation of prerequisites for a sustainable development on small, scarcely
inhabited and remote islands, as well as on large and developed islands.
The unsatisfactory living conditions, that is, the main identified problems on islands are the
non-existent or underdeveloped water-supply and sewage system, inappropriate care for the
elderly, inappropriate health protection and the inappropriate education system.
The project has established the following four components, the implementation of which should
improve the living conditions on the islands:
Communal infrastructure – with two components:
o Water supply – improvement of water safety, reliability and supply to small or
remote islands through the reconstruction of old and the construction of new
water-tanks of the appropriate capacity and water-supply system. Drinking
water is delivered by fishing boats or supplied through a water desalinisation
plant, especially on islands with more than 2000 residents and on islands with
a large number of visitors and tourists during the tourist season.
o Sewage system – it shall reduce the pollution of the environment by regulating
waste water discharges in sensitive areas covered by the project, in
accordance with the standards of the Republic of Croatia and the European
Union.
Social welfare
Health protection
Education process on smaller islands
rural development on the basis of specific local needs through their own budget finances.
However, there are no state mechanisms which may harmonise, coordinate or monitor such
aid models, while the local authorities do not have the obligation to register at the MAFRD the
type and the amount of aid granted. According to a Ministry’s research, in 2004 the average
amount of such aid amounted to 1,3 million EUR (10 million HRK) in agriculture-oriented
counties. Nevertheless, the amount of the aid granted depends highly on the counties’
economic power; in other words, poorer counties have fewer resources available for such aid.
The MAFRD is well aware of the problem, which may cause production and market distortions
in Croatia. It would be therefore required to establish a legal framework for regulating aid on
regional and local level concerning agriculture and rural development, in order to ensure a
balanced development of all regions.
3.2.2. Negotiations
After submitting the application for membership (21 February 2003, Athens), the Republic of
Croatia received a questionnaire consisting of 4744 questions in June 2003. The answers were
presented to Romano Prodi, President of the European Commission in October 2003. On the
basis of the answers given and the information received from other sources, the European
Commission evaluated Croatia’s achievements in introducing reforms. The conclusion was that
Croatia was a solid democracy with market economy and the country that made most progress
regarding the implementation of the Copenhagen criteria and political conditions contained in
the Stabilisation and Association Agreement.
After the European Commission presented its avis, in June 2004 Croatia received the status of
a candidate country and the negotiations began on 3 October 2005.
The European Commission issued its first Progress Report (COM (2005) 561 final) on Croatia
on 9 November 2005 and the second Progress Report for 2006 (COM (2006) 649 final) on 8
November 2006. The Progress Report contains a very detailed and updated overview and
evaluation of Croatia regarding its compliance with political and economic criteria for
membership and its ability to adopt and implement the EU acquis communitaire. The report is
an important instrument for the implementation of further reforms, especially concerning those
segments and issues related to the need to fully reach the European standards.
With regard to agriculture and rural development, in the Progress Report for 2006 European
Commission concluded that Croatia has made reasonable progress related to the
implementation of the Special Pre-accession Programme for Agriculture and Rural
Development (SAPARD), quality policy and organic farming. Preparations need to be
intensified as regards horizontal issues and the common market organizations. In particular,
due attention should be given to the establishment of the Integrated Administration and Control
System and Land Parcel Identification System.
Some progress has been made in the field of food safety, veterinary and phyto sanitary policy,
but efforts are required in order to accelerate the preparations.
In the field of fisheries, Croatia has reached a satisfactory level of alignment in its preparations
for accession. Important gaps remain in the areas of fleet management, inspection and control,
structural actions and state aid.
It is expected that Croatia shall adopt a plan with a timetable and details regarding the manner
it intends to pursue in order to approach the European Partnership priorities. The plan should
also contain the manner of continuing the works in accordance with the Thessalonica Agenda,
priorities regarding the struggle against organised crime and corruption and measures for an
integrated management of borders, all of which were presented during the meeting of the
ministers of justice and internal affairs held on 28 November 2003 in Brussels in the framework
of the EU-Western Balkans Forum.
Fisheries
Strengthen administrative and, in particular, inspection structures for fisheries policy.
Start establishing a computerised fishing vessel register.
With regard to the protected ecological and fishing zone, unilaterally declared by
Croatia, continue the implementation of the trilateral agreement reached in June 2004.
Fisheries
Substantially improve administrative structures and equipment to ensure effective
implementation of the common fisheries policy, including management of resources,
inspection and control of fishing activities, market policy, structural programmes and a
management plan for the fleet capacity in accordance with available fish resources.
Complete the establishment of a computerised fishing vessel register and of a satellite-
based vessel monitoring system.
On November 6, 2007 EC has published proposal for Council Decision on principles, priorities
and conditions contained in the Accession Partnership with Croatia and repealing Decision
2006/145/EC.
In the proposal are listed priorities selected on the basis that it is realistic to expect that Croatia
can complete them or take them substantially forward over the next few years.
Regarding Chapter 11 - Agriculture and Rural Development following three priorities are listed:
Strengthen the administrative structures and capacity needed to implement market and
rural development policies, including collection and processing of agricultural data.
Establish a vineyard register in line with EU standards.
Continue preparations to establish effective and financially sound paying bodies for the
management and control of agricultural funds, in line with EU requirements and
international auditing standards.
mechanisms and actions that must be undertaken in order to fulfil the obligations assumed
within the process of association to the European Union.
The National Programme of the Republic of Croatia for Joining the European Union for 2007
and 2008 aims at reaching the combination of all goals and tasks of the Republic of Croatia in
the implementation of the Stabilisation and Association Agreement, as well as implementing
the procedure required for continuing the integration in the European Union.
In the National Programme for Joining the European Union (NPPEU) for 2007 the agriculture
and rural development are dealt with in Chapter 3.11 and fishery in Chapter 3.13.
The new NPPEU for 2008 is under preparation. Under that document it is envisaged to have
fully operational structure for implementation of IPARD programme including the new
Ordinance on IPARD implementation, accreditation of structures and promotional campaign.
of Croatia
Establishment of the
Markovec SPG and
farmers’ leasing centre for 519.140
KOK Bakkeveen BV
agricultural machines
DEADLINE
FOR
COMPL.
Holstein association of
Development of the
the Croatian breeders 450.000 2005
Croatian dairy industry
and Farmco
Association of the
Upgrading of the Croatian
Croatian vegetable 446.108 2005
vegetable production
growers and Agriplan
Development of the
network for formulation of State Water
regional water Directorate and DHV 287.000 2005
management plan in the Water B.V
coastal municipalities
Bajkmont d.o.o.
Construction of stables for
Sesvete and The December
development of dairy 545.000
Friesian Agro 2006
industry
Consultancy BV
Ministry of Agriculture,
Improving the Institutional Forestry and Water
and Commercial Strength Management of the December
PPA05/CR/190 350.000
of the Croatian Fruit Republic of Croatia/ 2007
Sector HVZ (Croatian Fruit
Association)
Amount,
Project Title
million USD
The Renewable Energy Resources Project for Croatia aims at reducing greenhouse gas
emissions on a continuous basis by overcoming barriers to implementation of renewable
energy. Performance indicators for the global objective include: Reductions in carbon dioxide
emissions at the national and project levels; and Increased share of new Renewable Energy
Resources (RER) in national energy supply. The project will achieve the objectives by: (i)
Overcoming the barriers to market development, including: (a) legal (e.g., lack of enabling
policy and legal framework, inadequate planning capacity, unclear permitting and licensing
procedures, unclear land ownership); (b) financial (e.g., lack of understanding of renewable
energy in banking and business community, lack of risk capital); and (c) technical (e.g.,
potential strain on transmission system), (ii) Providing assistance to confirm market potential,
version of 14. 12. 2007; 198
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
build knowledge and implementation capacity, streamline procedures, monitor compliance with
minimum share targets, and inform the public.
Depopulation of rural areas and unfavourable age and gender structure of rural
population (18,9% of population in rural areas is older than 60 – women, and 65 years
– men),
Low level of education of rural population,
Weak activity or non – existence of regional and local institutions competent for rural
development,
Inadequate coordination of program and activities directed towards different economic
activities in rural areas.
MAFWM has an important role in implementation of rural development policy. Priorities,
programmes and measures within the competence of MAFWM have to be coordinated and
integrated into general activities for support of rural development, conducted by other ministries
and bodies of local and regional self - government. At this moment, programmes of particular
ministries in the Republic of Croatia which have the impact on rural areas development, are not
adequately harmonized and coordinated. Taking into account the level of integration of
agriculture, forestry and fishery within other sectors of economy, the close cooperation of
various entities of government administration, economic subjects, professional services,
agricultural producers and other inhabitants in rural areas is inevitable for qualitative
implementation and realization of rural development policy.
Rural development includes multifunctional concept, where a certain number of important
activities, directed towards accelerating the process of rural areas development, develop at the
level of certain government bodies. Besides MAFWM, the most important are:
Ministry of Economy, Labour and Entrepreneurship (development of small and middle
enterprises in rural areas)
Ministry of Sea, Tourism, Traffic and Development (regional development policy,
development of tourism, traffic connections, telecommunications, infrastructure)
Ministry of Environmental Protection, Physical and Construction (issues relating to
environment protection, natural resources, infrastructure, physical planning)
Ministry of Science, Education and Sports (strengthening of educational system in rural
areas, with emphasis on informal education)
Ministry of Culture (preservation and monitoring of biodiversity and completeness of
ecosystem and landscape within and outside protected areas)
Ministry of Health and Social Welfare (strengthening of the system of health and social
welfare in rural areas).
Also, within the context of self – government scope of work in counties, towns and
municipalities exist administrative bodies (administrative departments or services) competent
for development issues, including rural development. Thereto, most counties have one or more
development institutions like: county development agencies, entrepreneurial centres (county
and local centres for support of middle and small firms by credit and consultant services, and
for entrepreneurs for informing, professional education and promotion of entrepreneurship) and
other development institutions dealing with economic and other development issues at county
and local level. Those institutions have, in large or small extent, developed a certain degree of
partnership and cooperation with central administrative bodies. As a rule, establishers of these
bodies/institutions are counties, cities and municipalities.
Due to its complexity and long duration, rural development process also requires multi sectoral
approach, where besides the public sector, business and civil sector have important roles,
especially at local level. Local development initiatives will be more efficient and lasting, if they
are established upon complementary cooperation of all three sectors. Civil society
organizations have established themselves through their activities in the area of informing and
informal education – education and training, directly or indirectly related to rural development
(issues like strategic planning, writing projects in accordance with the requirements of EU
funds, managing of the project cycle, organizing community, etc.) and by promoting, assisting
and participating in different activities on the field. Business sector has been established as
version of 14. 12. 2007; 200
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
unavoidable participant in development projects at all levels. It usually has the role of investor
established on new models of private – public partnership, introduction of innovative business
approach, support of good practices, starting of cooperation for development, etc.
For the purpose of administrative integration of institutional structures included in the
implementation of rural development policy, it is needed to conduct activities such as:
Defining priority areas of rural development at national, regional and local level (taking
into account county Regional operation programme (ROP) and Projects of total
development (PUR) of cities and municipalities),
Strengthening of financial and human resources available at central level for
implementation of policy and rural development programme,
Better coordination of the roles of existing institutions for the purpose of implementing
new programmes and measures having influence on rural areas,
Coordination of implementation of regional and rural development policy,
Applying of EU principles in programming programmes of rural development at
regional and local rural development policy,
Strengthening of local and regional self – government bodies concerning efficient use
of available financial and human resources,
Strengthening of regional and local organizations and institutions (associations, non –
governmental organizations, social and economic partners), regarding inclusion in
preparation and implementation of programme and rural development measures at
local level.
The lesson learnt during SAPARD implementation will certainly contribute to avoid same
obstacles in IPARD implementation and resulting in more efficient operational and
administrative structure.
Particular attention should be focused on training of beneficiaries including:
what documentation do they need
where to obtain it
how to successfully prepare a project
Of course, these steps are to be prepared and thought about in details and well timed in order
to solve the problems and ensure better uptake.
Modification of criteria and procedures are a result of problem analysis noted during first call for
applications and through constant communication with final beneficiaries.
32
C(2007)2566
33
EC 718/2007
version of 14. 12. 2007; 204
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
intervention. Therefore, the specific objectives of the IPARD Programme will only partly cover
the difficulties illustrated in the SWOT analysis of the agricultural sector and the rural areas in
Croatia.
The IPARD measures will complement the implementation of the National Agricultural and
Fishery Strategy. Based on Act of State Aid for Agriculture, Fishery and Forestry, Croatian
Government supports development of agricultural sector and rural areas through national
support schemmes. National support is focused on wide range of beneficiares (farmers, non-
commercial producers, local self-government, associations and cooperatives, etc.) and wide
range of investments.
On the other hand, IPARD founds are targeted to limited number of sectors, eligible
investments and final beneficiaries. They are focused at viable producers, with clear priority
objective to support them in upgrading to Community standards and facilitate their
competitiveness. National schemes and IPARD funds in that way complement each other by
providing necessary support to different beneficiaries with division of objectives.
The IPARD assistance will also contribute to a sustainable and social coherent rural
development process consistent with international environmental practices by developing the
rural economy, enhancing income and providing and securing employment opportunities in the
rural areas to counterbalance disparities between regions and compared to urban areas, as
well as to develop and rehabilitee basic rural infrastructure, also in war effected areas.
Therefore, one specific objective per priority area has been defined and will be made
operational through corresponding measures:
These priorities with supporting measures will be implemented as the main instruments of the
IPARD Programme. Within the IPARD 2007-2013 Plan for agricultural and rural development
the whole area of the Republic of Croatia will be eligible unless otherwise defined in the
specific conditions set out in the technical fiches for each measure in Chapter 5 of this plan.
5. E LIGIBLE MEASURES
According to the sector analysis presented above (chapter 2.3.4.1), dairy sector in Croatia has
a dual aspect:
more than 76% of the family farms keep on average up to three dairy cows (reff.
Agricultural Census 2003), these very small farms have a low level of milking
technology, which cause a low level of raw milk production in terms of quantity and
quality. Around 50% of raw milk delivered to dairies does not meet Community
standards yet.
On the other hand Croatia has a share of 4 to 5 % (2007, CLC) of dairy farms with
more than 15 cows which are already specialized, open to market and close to or
above the viability level.
On the perspective of future accession of Croatia to the EU it is of key importance to support
the specialized, viable sector to prepare for future respect of Community standards and
competition on the open market. IPARD interventions under this measure should be aimed at
helping the milk production sector to achieve relevant Community standards, in particular for
raw milk quality34 as well as animal welfare and environmental conditions.
At the same time some of the smaller farms should be encouraged to cross above the viability
level.
Specific sector objectives under this measure for the milk sector are the following ones:
to help in priority medium sized (20 to 50 cows), viable farms to upgrade to milk
production quality standards as well as animal-keeping conditions and environmental
standards as well to improve production infrastructure and farm equipment to achieve
better sustainability and competitiveness in the future open EU market. Also larger
specialized dairy farm (50 to 100 and more cows) will be able to benefit from the
34
plate count and somatic cells in raw milk - Regulation (EC) 853/2004 Annex, Section IX, Chapter I, part
III, point 3
version of 14. 12. 2007; 209
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
support but farms above 100 cows will be limited for support related to animal manure
handling standards
farms below sustainability level will also be able to benefit from support if they can
prove that they will reach the minimum 20 cows level after the investment period.
Eligible investments for this sector will be:
Investment in construction and/or in reconstruction and/or in equipment of facilities of
stables for milk cows, including equipment facilities for milk production like milking
machines, on-farm milk cooling and storage facilities on farm premises; in construction
and/or in reconstruction of manure storage capacities including specific equipment of
facilities for handling and usage of animal manure like manure reservoirs, specialized
manure transportation equipment
BEEF SECTOR
Cattle breeding still face enormous structural problems where one of the reasons was the
decrease by 58,5% (cattle), respectively by 63,4% (breeding cows and heifers) during the war
period, which has obviously reduced the production volume and slowed down the necessary
adjustments to make in a market system. Today, most of the cattle are held on small family
farms, which, as well as the specialized cattle breeding farms do not comply with the EU
minimum hygiene, animal welfare and environmental standards, which require investments.
IPARD funds should in particular be focused on investments to help the sector to meet
Community standards in contrary to the national operational programme to develop the beef
sector which is especially focused on increase of the production.
Also, within beef production sector it is obvious a clear distinction between:
small scale farms keep less than 10 cattle and they represent for more than 90% of all
cattle (see sector analysis, page 62) and are under sustainability threshold
medium and bigger producers which represents less than 10% of total number of cattle
o family farm with between 10 and more than 20 cows which are near
sustainable level
o legal entities with more than 50 cattle which are viable and sustainable
On the perspective of future accession of Croatia to the EU it is of key importance to support
the specialized, viable sector to prepare for future respect of Community standards and
competition on the open market. IPARD interventions under this measure should be aimed at
helping the beef production sector to achieve relevant Community standards, in particular
animal welfare and environmental conditions
At the same time some of the smaller farms should be encouraged to cross above the viability
level.
Specific sector objectives under this measure for the beef sector are the following ones:
to help in priority medium sized (40 to 150 cattle), viable farms to upgrade to animal-
keeping conditions and environmental standards as well to improve production
infrastructure and farm equipment to achieve better sustainability and competitiveness
in the future open EU market. Also bigger specialized beef farms (150 and more) will
be able to benefit from the support related to Community standards on animal manure
handling
farms below sustainability level will also be able to benefit from support if they can
prove that they will reach the minimum 40 cows level after the investment period.
Eligible investments in this sector will be:
Investment in construction and/or in reconstruction and/or in equipment of facilities of
stables for cattle within farm premises, in construction and/or in reconstruction of
manure storage capacities including specific equipment of facilities for handling and
PIG SECTOR
According to the sector analysis (see page 54) 90% of the pig production is performed in family
holdings with an average size of 8 pigs. Only 1,5% of family holdings possess a capacity bigger
than 50 pigs. 10% of the total pig production is provided by legal entities which have an
average size of 464 pigs. Only 9% of the legal entities have a capacity of over 400 pigs. Animal
housing and equipment is outdated.
To obtain sustainability of production we recognized as a priority those with a capacity reaching
viability or exceeding it.
Specific objectives of this sector are:
to help in priority medium sized (20 to 100 sows or 400 to 2.000 pigs), viable farms to
upgrade to animal-keeping conditions and environmental standards as well to improve
production infrastructure and farm equipment to achieve better sustainability and
competitiveness in the future open EU market. Also bigger specialized pig farms (100
sows and more or 2.000 pigs or more) will be able to benefit from the support related to
Community standards on animal manure handling
farms below sustainability level will also be able to benefit from support if they can
prove that they will reach the minimum 20 sows or 400 pigs level after the investment
period.
Eligible investments for this sector will be:
Investment in construction and/or in reconstruction and/or in equipment of facilities of
stables for pigs within farm premises, in construction and/or in reconstruction of
manure storage capacities including specific equipment of facilities for handling and
usage of animal manure like manure reservoirs, specialized manure transportation
equipment
P O U LT RY SECTOR
Specific sector objectives under this measure for the poultry sector are the following ones:
to help in priority medium sized producers with more than 5.000 to 30.000 broilers per
production cycle to be able to upgrade to quality standards as well as animal-keeping
conditions and environmental standards as well to improve production infrastructure
and farm equipment to achieve better sustainability and competitiveness in the future
open EU market. Also larger specialized poultry farms (30.000 and more per
production cycle at the beginning of investment) will be able to benefit from the support
for handling and usage of animal manure
farms below sustainability level will also be able to benefit from support if they can
prove that they will reach the minimum of 5.000 broilers per production cycle after the
investment period.
Eligible investments for this sector will be:
Investment in construction and/or in reconstruction and/or in equipment of facilities
including bio security equipment of poultry houses within farm premises, in
construction and/or in reconstruction of manure storage capacities including specific
equipment of facilities for handling and usage of animal manure like manure
reservoirs, specialized manure transportation equipment
EGG SECTOR
farms below sustainability level will also be able to benefit from support if they can
prove that they will reach the minimum of 10.000 laying hens after the investment
period.
Eligible investments for this sector will be:
Investment in construction and/or in reconstruction and/or in equipment of facilities
including bio security equipment of stables for eggs production, in construction and/or
in reconstruction of manure storage capacities including specific equipment of facilities
for handling and usage of animal manure like manure reservoirs, specialized manure
transportation equipment
FRUITS A N D V E G E TA B L E S S E C T O R
As seen in sector analysis (see chapter 2.3.4.8) both vegetable and fruit production is mainly
preformed by family farms, which makes the production fragmented and lowers the productivity
and quality. 5,5% of the fruit producers’ family holdings own more than 10 ha, while 89,4% of
legal entities has more than 10 ha of orchards. 13% of family holdings have more than 5 ha
under vegetables while 42% of legal entities has more than 30 ha under vegetables. Total
production of vegetables (mainly tomato, paprika and cucumber) under greenhouses is around
45.000 tons. So, the production can also be looked dually:
Small, fragmented farms with low productivity, low technology and representing for
more than 80% of all producers
Larger or more specialized farms with near, or over viability and sustainability level
representing for 20% of producers
In order to organize modern vegetable and fruit production which would result in higher product
quality and competitiveness of the sector, it is necessary to increase production under
protected areas, to modernize production by investing in new technology in harvesting, storage
and cooling capacities, processing, sorting and packaging lines.
On the perspective of future accession of Croatia to the EU it is of key importance to support
the specialized, viable sector to prepare for future respect of Community standards and
competition on the open market. IPARD interventions under this measure should be aimed at
helping the fruits and vegetables sector to achieve relevant Community standards, in particular
environmental conditions.
Specific objectives of this sector are the following ones:
To help in priority medium sized:
o vegetable producers (500 m2 to 2.000 m2 of greenhouses or 0,5 – 30 ha of
open-space production) to be able to upgrade to quality standards and
environmental standards as well to improve production infrastructure and farm
equipment to achieve better sustainability and competitiveness in the future
open EU market.
o fruit producers (2 ha to 50 ha; 0,5 ha up to 5 ha of table grapes) to be able to
upgrade to quality standards and environmental standards as well to improve
production infrastructure and farm equipment to achieve better sustainability
and competitiveness in the future open EU market.
Eligible investments for this sector will be:
Investment in construction and/or in reconstruction and/or in equipment of facilities for
greenhouses (covered by glass or plastic) for fruits and vegetables
Investment in equipment of facilities for specialized harvesting, sorting and packaging
of fruit and vegetables, including table grapes
Investment in construction and/or in reconstruction and/or in equipment of facilities for
storage facilities for fruits and vegetables; excluding ULO capacities
Cereals and oil crops production is dominant in Croatian agriculture, concerning utilized
agricultural land and number of producers. It is closely linked to livestock production, providing
quality and cheaper fodder for domestic animals, therefore investments in storage and drying
facilities on farm are recognized as most important one (see sector analysis, chapter 2.3.4.7)
Production of cereals and oil crops can also be seen as dual:
more than 83% of the family farms utilize on average less than 5 ha under cereals and
oil crops and(reff. Agricultural Census 2003), these very small farms have a low level
of technology, which cause a low level production in terms of quantity and quality. They
utilize 507.000 ha.
On the other hand Croatia has a share of 16 % (CBS, 2003) of farms with more than 5
ha which are more or less specialized, open to market and close to or above the
viability level. They utilize 111.000 ha.
In order to achieve objectives set under this measure especially regarding the upgrading to
Community standards and competitiveness, IPARD funds will be focused on two main groups
of beneficiaries which represent sector specific objectives under this measure:
to help in priority medium sized (20 to 50 ha), viable farms to upgrade to environmental
standards as well to improve production infrastructure and farm equipment to achieve
better sustainability and competitiveness in the future open EU market.
Eligible investments for this sector will be:
Investment in construction and/or in reconstruction and/or in equipment of facilities for
storage and drying of grains and oil seeds
All agricultural holdings must demonstrate that manure management is in compliance with the
Community standards at the end of the investment.
As regards the investments in the milk sector, the agricultural holding must comply with
relevant Community standards and in particular those specified in Regulation (EC) No
853/2004, Annex III, Section IX, Chapter I raw milk – primary production at the end of the
investment if the project concern construction/reconstruction.
Level of production Eligible investments
From minimum 20 and up to maximum 100 milking All eligible investments for this sector (see chapter
cows at the end of investment 5.1.1.3)
BEEF SECTOR
All agricultural holdings must demonstrate that manure management is in compliance with the
Community standards at the end of the investment.
Level of production Eligible investments
From minimum 40 and up to maximum 150 heads at All eligible investments for this sector (see chapter
the end of the investment 5.1.1.3)
From minimum 20 sows or 400 pigs per year up to All eligible investments for this sector (see chapter
maximum 100 sows or 2.000 pigs per year at the end
of investment 5.1.1.3)
POULTRY S E C TOR
All agricultural holdings must demonstrate that manure management is in compliance with the
Community standards at the end of the investment.
Level of production Eligible investments
From minimum 5.000 up to maximum 30.000 broilers All eligible investments for this sector (see chapter
per production cycle at the end of investment 5.1.1.3)
EGG SECTOR
All agricultural holdings must demonstrate that manure management is in compliance with the
Community standards at the end of the investment.
From minimum 10.000 up to 50.000 laying hens at the All eligible investments for this sector (see chapter
end of investment 5.1.1.3)
35
Detailed provisions on priority criteria is explained under chapter 6
version of 14. 12. 2007; 217
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
TOTAL 100
2007 17.000.000 8.500.000 50% 6.375.000 75% 2.125.000 25% 8.500.000 50%
2008 16.384.000 8.192.000 50% 6.144.000 75% 2.048.000 25% 8.192.000 50%
2009 16.512.000 8.256.000 50% 6.192.000 75% 2.064.000 25% 8.256.000 50%
2010 15.946.667 7.973.333 50% 5.980.000 75% 1.993.333 25% 7.973.333 50%
2011 16.253.333 8.126.667 50% 6.095.000 75% 2.031.667 25% 8.126.667 50%
2012 n.a. 36 n.a. 50% n.a. 75% n.a. 25% n.a. 50%
2013 n.a. n.a. 50% n.a. 75% n.a. 25% n.a. 50%
Total 65.842.667 32.921.333 50% 24.691.000 75% 8.230.333 25% 32.921.333 50%
36
N.a. – not applicable at the time of drafting the programme – the figures will be included after the
publication of the MIFF by the EC
version of 14. 12. 2007; 219
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Sector Milk Meat Eggs Fruits and vegetables Grains and oil seeds Total
5.1.1.13. Indicators
Output indicators
Number of farm holdings supported (division per size, per county) 309
OUTPUT
Total volume of investment per project 270.000 EUR
The majority of the micro, small and medium milk and dairy processing companies do not yet
comply with the relevant Community standards, nor do they have the necessary technologies
to diversify their dairy products in order to meet the local consumer demands for high-quality
dairy products. In the milk and dairy sector there is altogether 58 dairy establishments, from
which 47 are milk processing plants and 11 of them are mostly cold storages. According to the
process of assessment, 17 establishments are placed as EU compliant and 31 of them are
placed in EU – non compliant category. IPARD funds under this measure should focus on non-
compliant small and medium sized dairies with a processing capacity between 1.800.000 and
50.000.000 litres per year. Investments will also cover cooling tanks owned and provided by
dairies on sufficient big farms to collect milk from. Smaller farmers are supposed to bring their
milk to such collection points
Eligible investments for milk and dairy sector under this measure will be:
Investment in reconstruction and/or in equipment of facilities of existing milk and dairy
plants, including cooling equipment for the raw milk at collection points.
Investments in specialised transport vehicles for raw milk.
The measure aims to upgrade the technological standards of micro, small and medium
processing plants in the dairy sub-sectors to comply with Community standards related to
hygiene, animal welfare, and environmental conditions at the date of Croatia's accession to the
EU. Furthermore support provided under this measure will help to improve the competitiveness
of SMEs on the national and international market and improve the marketing access for
producers of agricultural primary produces. All SMEs processing products of animal origin and
funded under IPARD will have to be listed according to the national plan for upgrading
processing establishments to Community standards.
M E AT SECTOR
Concerning the meat sector, after the categorisation of establishments, a total number of
slaughterhouses amounts to 203, from which 156 are for red meat and 47 are for poultry and
lagomorphs. There are 10 slaughterhouses approved for export to EU countries, 5 for red meat
and 5 for poultry. The majority of slaughterhouses operate with outdated technologies and at a
low capacity-level. It is essential to encourage investment in viable slaughterhouses that have
the potential to upgrade their buildings and technologies in order to comply with the relevant
Community standards on e.g. hygiene, animal welfare and environment.
On the basis of the slaughterhouse classification in the category in compliance with EU
standards and category non compliant with EU standards, it is established that 56
slaughterhouses of red meat is compliant and 100 non compliant with EU standards from the
total number of 156 slaughterhouses in the Republic of Croatia (as presented in table 2-55).
The Republic of Croatia has uneven meat consumption during the year due to the tourist
season and increased number of guests, so the local slaughterhouses do not work with the
same capacity all of the time. Due to the geographical structure of Republic of Croatia (very
long and well-indented coast and the high number of islands) it must also taken into account to
maintain the necessary number of existing slaughterhouses and allow them to upgrade in order
to comply with EU standards.
The minimum capacity as presented on page 223, allows thereby those local slaughterhouses
to be eligible under IPARD and consequently gives them opportunity to comply with EU
standards.
Regarding the rest of the slaughterhouses that may not apply for IPARD programme funds as a
result of defined criteria the Republic of Croatia will help them from national funds in order to
upgrade in compliance with EU standards due to the reason presented above.
There is one Croatian rendering plant which has enough capacities for Croatian needs and
which was contracted to receive SAPARD funds in 2007 with the aim of upgrading buildings
and technologies to meet relevant Community standards. However there is still a need to invest
in at least five intermediate plants to bring them in line with the respective Community
standards.
Eligible investments for meat processing sector will be:
Investment in reconstruction and or in equipment of facilities of existing
slaughterhouses including equipment of facilities for cooling and packaging of meat
and waste management. Cutting plants which constitute one single establishment,
together with a slaughterhouse, are also eligible.
Investment in construction and/or in reconstruction and/or in equipment of facilities of
intermediate plants
The measure aims to upgrade the technological standards of micro, small and medium
processing plants in the meat processing sector to comply with Community standards related
to hygiene, animal welfare, and environmental conditions at the date of Croatia's accession to
the EU. Furthermore support provided under this measure will help to improve the
competitiveness of SMEs on the national and international market and improve the marketing
access for producers of agricultural primary produces. All SMEs processing products of animal
origin and funded under IPARD will have to be listed according to the national plan for
upgrading processing establishments to Community standards.
FISHERIES
The structure of the fish farming and processing which is one of the rare segments of the agri-
food industry in Croatia with a positive export-import balance, is characterized by 5 medium
sized and a number of small and micro sized enterprises. The equipment and technology used
in most enterprises is outdated - not meeting relevant Community standards on e.g. hygiene,
animal welfare and environmental requirements - and does not allow for the diversification of
the products. None of the shellfish distribution or purification centres in Croatia operates with
modern technologies. Thus investment in the construction and updating of the technologies is
needed to ensure the quality of the products and to obtain minimum EU. Investments
supported by IPARD under this measure will help to increase the quality of the final products
and enhance the competitiveness of the processing plants on the national and international
market.
Eligible investments for fisheries sector under this measure will be:
Investment in construction and/or in reconstruction and/or in equipment of facilities of
fish, mussels and shellfish processing plants for cooling, slicing, drying, fuming and
packaging of products and waste reduction, including software
Investment in construction and/or in reconstruction and/or in equipment of facilities of
distribution centres and/or purification centres for shells
The measure aims to upgrade the technological standards of micro, small and medium
processing plants in the fisheries sectors (including shellfish) to comply with Community
standards related to hygiene, animal welfare, and environmental conditions at the date of
Croatia's accession to the EU. Furthermore support provided under this measure will help to
improve the competitiveness of SMEs on the national and international market and improve the
marketing access for producers of agricultural primary produces. All SMEs processing products
of animal origin and funded under IPARD will have to be listed according to the national plan
for upgrading processing establishments to Community standards.
version of 14. 12. 2007; 223
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
FRUIT A N D V E G E TA B L E S P R O C E S S I N G I N D U S T RY
During the transition process and war period, the fruit and vegetable processing sectors faced
a sharp decline in terms of quantity and quality criteria of the processed products. Today, these
sub-sectors have not yet recovered and are characterized by distorted processing and
marketing structures. The quality of production of the frozen fruits and vegetables, minimum
processed fruits and vegetables and semi-processed products for fruit and vegetable juices,
processed products from potato and tomato, canned fruits and candied fruits, low pickled and
pasteurized vegetables, including organic fruits and vegetables should be improved to meet
relevant Community standards.
However, the low organizational degree of the fruit and vegetable production sector, in
particular the lack of producer groups, was identified as the sector's weakest link in the
marketing chain as the delivered quantity and quality of the raw material does not yet satisfy
the needs of the processing industry. Therefore, and before IPARD support under this measure
will be made available to the fruit and vegetable processing sector Croatia will prepare and
implement a national measure supporting the establishment of producers groups along the
requirements set out in the EU's CMO for fruits and vegetables. The measure will support
activities such as training and information dissemination on key concepts of the CMO,
operational programmes and marketing standards.
Eligible investments for fruits and vegetables sector under this measure will be:
Investment in construction and/or in reconstruction and/or in equipment of facilities of
fruit and vegetable processing plants, including mushrooms
The measure aims to upgrade the technological standards of micro, small and medium
processing plants in the fruit and vegetable sector (including mushrooms) to comply with
Community standards related to hygiene and environmental conditions at the date of Croatia's
accession to the EU. Furthermore support provided under this measure will help to improve the
competitiveness of SMEs on the national and international market and improve the marketing
access for producers of agricultural primary produces.
WINE SECTOR
In 2005 Croatia's wine production was 1,5 million hectolitres out of which 667.865 hl was
released on the market. The majority of the 940 producers who sell their wine on the market
are small (less than 1000 hl, per year) and only 9 of them produced more than 20.000 hl.
IPARD support will focus on investments to improve the quality control in field of oenology.
Eligible investments for wine sector under this measure will be:
Investment in equipment of facilities (equipment for filtration, stabilization, bottling lines,
automatic labelling and packaging lines) of wineries
The measure aims to upgrade the technological standards of micro, small and medium
processing plants in the wine sector to comply with Community standards related to hygiene,
and environmental conditions at the date of Croatia's accession to the EU. Furthermore
support provided under this measure will help to improve the competitiveness of SMEs on the
national and international market and improve the marketing access for producers of
agricultural primary produces.
The processing of olive fruits into olive oil is currently made by 112 mills 47 of which have
outdated equipment and 65 were modernized in last recent years. At the moment the HACCP
system is implemented in 4 mills as well as 4 mills are certified according to ISO. IPARD funds
will focus on investments for laboratory equipment to perform chemical analyses on the quality
of the olive oil. Moreover it will provide support for equipment to further utilize olive pomace, a
by-product of the olive processing, to produce compost.
Eligible investments for olive oil sector under this measure will be:
Investment in laboratory equipment for basic chemical analysis of olive oil
version of 14. 12. 2007; 224
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Investment in equipment for utilization of olive pomace for processing into compost
The measure aims to upgrade the technological standards of micro, small and medium
processing plants in the olive oil sectors to comply with Community standards related to
hygiene and environmental conditions at the date of Croatia's accession to the EU.
Furthermore support provided under this measure will help to improve the competitiveness of
SMEs on the national and international market and improve the marketing access for
producers of agricultural primary produces.
37
Article 2(c) of the Regulation 852/2004
version of 14. 12. 2007; 225
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Enterprise must comply with national minimum standards (see annex 12.11, Table
12-12) regarding environmental protection, public health, animal and plant health,
animal welfare and occupational safety at the time when the decision to grant support
is taken. Where national minimum standards based on Community standards have
been newly introduced at the time when the application is received, assistance may be
granted regardless of non – compliance with those standards on the condition that the
enterprise shall meet the new standards by the end of the realisation of the investment.
A prior assessment from environmental national authorities on project must be
submitted together with the project/business plan. For projects of certain size an
Environmental Impact Assessment is to be carried out prior to investment according to
the Act on Assessment of the Impact on the Environment (compliant with EU directives
85/337/EEC and 97/11/EC, including Annex I and II).
Enterprise must provide the list of the necessary investments to upgrade to Community
standards from the veterinary services subsequent to their assessment and include it
in the business plan proving the targeting of investment.
Entire establishments in the enterprises must comply with relevant Community
standards at the end of the investment realization.
The enterprise must demonstrate (in the business plan) economic viability (see annex
12.10) at the end of the realization of the investment. Business plan must be made
according to the standard requirements of banks. If the main objective of the
investment is increase of production, the business plan must demonstrate existing
market.
Beneficiary must not have any outstanding liabilities against the State at the moment of
applying.
Investments at retail level shall be excluded from support.
If the investment concerns reconstruction and/or equipment facilities of existing
establishments in the case of investments in the milk and dairy, meat and fisheries
sector, establishment must be listed in the National Programme for Upgrading
Establishments to Community Standards elaborated by MAFRD Veterinary Directorate.
To ensure traceability, the registration number provided to the establishment during the
assessment process should be kept or referred to during the IPARD project phase as
well as linked to the EU export number if subsequently awarded.
Actions co-financed under Component III should be excluded from support under this
measure
M E AT SECTOR
Investments in intermediate plants: priority will be given to investments situated in places listed
in Chapter 2.3.4.5 (See page 77)
Investments in slaughterhouses:
Investments in construction are eligible only if existing capacity is closed down due to no
possibility for upgrading to Community standards and only if there is an Order for Removal of
the Plant issued by the Ministry of Environment Protection, Spatial Planning and Construction
according to Spatial Planning Act (OG 76/07, 38/09) and Ordinance on Simple Construction
Works (OG 21/09).
Investments in slaughterhouses with a minimum capacity per 8 working hours of: 20 cattle or
50 pigs or 50 sheep and goats or 5.000 poultry shall be eligible
F ISH ER IES S EC TO R
investments in fish processing plants of at least 18t capacity per year are eligible
investment implemented must comply with the Council Regulation (EC) No 1198/2006 of 27
July 2006 on the European Fisheries Fund and the Council Regulation (EC) No 2371/2002 of
20 December 2002 on the conservation and sustainable exploitation of fisheries resources
under the Common Fisheries Policy
W IN E SECTOR
beneficiary must be registered in the Register of Producers of Grape, Wine and Fruit Wine at
the Croatian Institute for Viticulture and Grape
beneficiaries who produce at least 200 hl up to maximum 20.000 hl per year and produces
Quality wine according to Wine Act (see page 317) are eligible
Investment is implemented on the Less Favoured Areas as defined by If "yes" than 30, if
30
Act on Agriculture (OG 66/01, 83/02) "no" than 0
38
Detailed provisions on priority criteria is explained under chapter 6.1.2.1
version of 14. 12. 2007; 227
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
TOTAL 100
39
Small and medium sized enterprises are excluded from measure 3.2. Diversification of rural economic
acctivities
40
Beneficiary has stated in business plan that one of the project objectives is „extension of product
range“
version of 14. 12. 2007; 228
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
The amount of public aid shall be up to 50% of total eligible investments in projects.
A maximum of five eligible investments per beneficiary are allowed. The application for the next
investment can be brought in only after finalisation (final payment) of the previous investment.
The payments for the investments shall be received in one instalment according to the details
agreed in the contract signed between the beneficiary and the Directorate for Market and
Structural Support in Agriculture (DMSSA).
Sector Milk Meat Fruits and vegetables Fishery Wine Olive oil Total
5.1.2.13. Indicators
Output indicators
A ranking system will be applied and a ranking list formed and priority given to investments with
higher points.
Detailed administrative setup and procedures are explained under chapter 6.1.2.1
5.2.1.2. Background
Agriculture is by far the biggest single influence on the Croatian environment and countryside.
Currently, Croatia practices bipolar agriculture: high-input in regions with intensive arable
farming and low-input farming in less favoured areas, most of which are karst regions. Agri-
chemicals are applied only on arable land and permanent crops. Most Croatian farms practice
very narrow crop rotation, resulting in a number of environmental problems and a decline in
biodiversity. Soil erosion is a significant problem, although the biggest one seems to be land
abandonment. Shrubs and forest-like vegetation are rapidly invading a vast area of Croatian
agricultural land, notably species-rich grassland. Consequently the pilot agri-environment
programme should be designed to address two major problems that Croatia faces concerning
agriculture and environmental/nature protection:
Decline of landscape, habitats and species diversity due to loss of agricultural land,
notably grassland
Environmental degradation caused by inappropriate agriculture practices including high
consumption of fertilisers and pesticides, notably on arable and permanent crops.
Taking this into account it seems to be justified to design pilot agri-environment measures
aiming at the:
Maintenance of the positive role of agriculture in creating and preserving semi-natural habitats
and mosaic landscapes. Grasslands in Croatian karst areas are the prime potential sites for
such measures.
Reduction of existing and prevention of possible future negative environmental impacts arising
from adverse agricultural practices. Intensive arable production in Pannonian Croatia should be
targeted by these measures.
Grazing
1 Velebit Nature Park
Mowing
Grazing
Corncrake protection
Green covering
Field stripes
Hedgerows
Geographical area
All agricultural land within the Velebit Nature Park territory.
Environment/biodiversity features
The greatest wealth of the Park’s natural value lies in the karst phenomena and the biodiversity
of the mountain flora, which owes its existence to the fact that the mountain is actually a border
between the two huge climatic regions - Mediterranean and continental.
The location and structure of the mountain enable the development of highly diverse habitats
and wildlife. Velebit is the most important centre of endemism in Croatia. Due to the fact that
the mountain has been inhabited for centuries various cultural landscapes are still present.
Most of Mount Velebit is covered with forests (more then 63%). Rocky habitats with exposed
cliffs are also present. Different grassland types cover around 33% of the total area of Velebit
Nature Park. Grasslands are common in the vicinity of villages, as well as in the high mountain
region as a result of the natural conditions or, more often extensive seasonal livestock
breeding in the past.
According to the Habitats map of Croatia (DZZP, 2004) there are 18 different habitat types
listed in Annex I. of the Habitats (92/43/EEC) Directive in Velebit Nature Park. All of the
recorded grasslands belong to one of the NATURA 2000 grassland habitats types.
To date, around 2700 plant taxa, of which 78 endemic, have been recorded on Mount Velebit.
Some of the plant species are endangered on the national or international level. According to
available data there are 8 critically endangered (CR), 21 endangered (EN) and 42 vulnerable
(VU) species. Seven of the recorded species are listed in the Annexes of the Habitat Directive.
53 of those nationally and internationally endangered species are grassland species.
A great number of caves and pits with highly endemic underground fauna are a prominent
valuable feature of this mountain. Especially rich is the mammal fauna. All three European
large carnivore species (wolf, brown bear and lynx) are also present on the Velebit Mountain,
as well as 20 species of bats (large carnivores and all bat species listed in the Annexes of the
Habitat Directive). According to available data, Velebit is home to 35 bird species endangered
in Croatia and 53 species listed in the Birds (79/409/EEC) Directive. 40 of those nationally or
internationally endangered species are dependent on grasslands.
The Velebit Nature Park area, with its diverse habitats, is an important bird site and therefore a
potential SPA (Special Protection Area) according to the Birds Directive. Intensified forest
management, changes in traditional farming, excessive or illegal hunting and unregulated
recreational activities and tourism threatens birds. Mount Velebit harbours isolated nests of
griffons. Their existence is endangered and threatened by human activities, notably the lack of
sheep - their important food supply source.
Socio-economic situation
Small-scale semi-subsistence private farming prevails and the area does not have any
significant agricultural companies. The population in the Park is quite old and not well
educated. However, there are a few vital villages with relatively young farmers, with the villages
of Kuterevo and Krasno being the flagship examples. Krasno is particularly interesting as it is
one of the very few (if not the only) villages in Croatia with no unemployed inhabitants. It runs
several small-scale businesses, including the only dairy (family-run) factory in Croatia
producing milk from mountainous grasslands. This factory provides for the survival of some
120 farms in the Park and its border areas.
Agricultural practices
The latest estimates suggest that Velebit Nature Park has approximately 5.000 ha of utilised
grassland and about 65.000 ha of non-utilised grassland. The current grassland management
practice favours the usage of better yielding (but usually less biodiversity rich grasslands) as
well as plots that are nearer to the settlements and more accessible for cultivation/grazing.
The problem
As a result of depopulation and changes in the local economy (abandonment of extensive
seasonal livestock breeding practices) all grasslands are exposed to natural succession. Due
to the diminishing farming activities most of the grassland has been out of production for years
and substantial areas have been completely or partly overgrown by forest-like vegetation.
Shrubby vegetation is suppressing valuable grassland species adapted to survive on sparse
soil or in holes between rocks with a shortage of water.
Consequently the biodiversity value of the area has been rapidly declining.
Objective
To prevent further natural succession on species-rich grasslands
To preserve or enhance the current amount of valuable grassland habitats listed in the
annexes of the Council Habitats (92/43/EEC) Directive
To prevent landscape value declining by losing open landscapes
To protect karst biodiversity and fragile underground ecosystems
Description of measures to be undertaken
Objective:
Practise extensive grassland management consisting of mowing or/and grazing.
Management requirements
According to management practice, grassland could be mowed or predominantly grazed. A
distinction is to be made between the Mowing Package, including additional compensation for
the mowing of steep slopes, and the Grazing Package.
Geographical area
All grasslands (about 8.300 ha) within the Lonjsko Polje Nature Park territory.
Environment/biodiversity features
The landscape of Lonjsko Polje Nature Park is a mosaic of traditional villages, orchards,
hedges, meadows, common pastureland, ox-bows, ponds, rivers, untouched tributaries and
riparian forests and depends on flooding dynamics.
The Park is home to seven important habitats and 89 species mentioned in the EU Habitats
Directive (92/43/EEC). The fauna of Lonjsko Polje Nature Park consists of 250 species of birds
(134 nest in the area), 58 mammals, 16 amphibians, 10 reptile and 45 fish species and 550
species of plants. Its pastures and mezophile grasslands are a feeding area for many birds
endangered on the national and international level.
Socio-economic situation
Small-scale semi-subsistence private farming prevails and the area does not have any
significant agricultural companies. The population in the Park is quite old and not well
educated. However, there are few more vital villages with relatively young farmers.
Agricultural practices
Pasturing in the Posavina region is a dynamic system, which, depending on needs, involves
areas that in other parts of the year or under changed conditions are excluded from the system.
Traditional land use preserves some autochthonous domestic breeds - the Posavina horse, the
version of 14. 12. 2007; 236
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Turopolje pig, the Posavina pointer and the Posavina goose. The Public service is the owner of
a herd of Slavonian-podolian grey cattle, which has a very important role in the restoration of
the Park area affected by Amorpha fruticosa. Three basic types of pasturing can be
distinguished in the area:
Commons: It is practised by villages whose pastures are owned by the former public
sector. These pastures are managed jointly.
Hay-field pasturing: The villages have large haymaking complexes. Up to 1st May, or
after mowing, the meadows are managed in common. Here it is not essential whether
the meadow is privately or publicly owned. In the event of high water during the
summer, the commons type of management is abandoned in favour of the hay-making
type.
Poloj: Some villages practice a pasturing system that is based on the intensive use of
grass growing along dikes, road edges, groves and the inundation area between the
old dike and the Sava (the so-called poloj). This is common for the villages which are
short of both private and common pasture land.
Pasturing begins when the snow has melted or when the pastures are dried enough (after the
spring floods) for the animals to walk on them. The state of the turf is not a criterion, and the
animals are often driven to the pastures when the grass has not grown enough. In the event of
a high spring water level, the animals first of all graze on the meadows, until 1st May at the
latest. Then the meadows have to be left, so that the grass can recover until hay-making. Hay-
making begins on 1st July and lasts until 15th August, but even after this period there can be un-
mown areas, because apart from stock driving and floods, it is sometimes necessary to pay
more urgent attention to other jobs (e.g., late or temporarily-restricted harvests of crops
because of floods), which is an adequate reason for the haymaking time to be postponed. Late
mowing makes possible, among other things, self-sowing in the meadows.
Many of the meadows, for this reason, are mown only once a year. Hay is rarely made for the
second time. Meadows for mowing that are inundated and muddy are mowed last, because the
hay is used only as feed for horses. This kind of hay is not used for dairy cattle. Large animals
are on the pastures all summer long, right until late autumn (the first frosts) or until the new
floods (October/November).
The stocking density in the Park is 0,5 LU/ha, consisting of about 2.300 cows, 1.100 horses
and 1.400 pigs.
The problem
As a result of depopulation and changes in the local economy farming activities are diminishing
and lot of the grassland has been out of production. Due to the abandonment and low number
of cattle, but also because of the recent war (1991 - 1995) grazing and hay-making activities
have been terminated on large parts of the less productive but species-rich grassland. As a
consequence, large complexes of meadows and pastureland are now covered by the invasive
species Amorpha fruticosa. Consequently the biodiversity value of the area has been rapidly
declining.
Objective
To restore and maintain grassland biodiversity
To preserve or enhance the current number of plant and bird species listed in the
annexes of the Council Habitats (92/43/EEC) and Birds (79/409/EEC) Directives
Action 1: Grazing
Objective
Restore and maintain wetland grassland as a habitat for endangered habitat types and species
included in the annexes of the Council Habitats (92/43/EEC) and Birds (79/409/EEC) Directives
(especially Hydrocharition and Chlidonias hybrida).
version of 14. 12. 2007; 237
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Description of measure
Practise extensive grassland management through grazing of pastures.
Management requirements
Grazing of at least of 3 ha
Clearance of shrubs and small trees to enable regular grazing
Application of herbicides, pesticides and mineral fertilizers is not allowed
Compulsory stocking rate between 0,5 and 1,5 LU
Grazing period: minimum 180 days (April - November)
Grazing requires supervision by shepherd
Action 2: Mowing
Objective
Restore and maintain grassland as a habitat for endangered habitat types and species
included in the annexes of the Council Habitats (92/43/EEC) and Birds (79/409/EEC) Directives
(especially Aythya nyroca)
Description of measure
Practise extensive grassland management through mowing of meadows.
Objective
To protect and possibly increase the Corncrake population by providing grassland habitats
managed in a way favouring the Corncrake’s specific needs.
Management requirements
The Corncrake favours hay fields with tall vegetation. Its breeding season is from late May to
early August and it nests on the ground in well-hidden locations among tall vegetation in hay
fields. Therefore the management involves:
Delayed hay cutting: not until July 20, with the farmer agreeing to postpone the mowing where
birds are present on the site. This will allow the Corncrake to rear its offspring
Minimum plot surface 0,15 ha
Application of pesticides and mineral fertilizers is not allowed. The Corncrake’s diet depends on
insects, snails, earthworms and other pesticide-sensitive organisms
Keeping field borders (2 - 3 m wide) uncut. These strips provide shelter, as the Corncrake
needs these for ease of movement. The strips should be cut once in three years in order to
prevent shrub encroachment. Cutting should alternate between different sides of the field
The stocking rate should not exceed 0,3 LU per hectare. Grazing is forbidden in the period 15th
May - 31st August
Grass cutting must take place in a spiral form from the centre out towards the edges. It is
important to cut slowly since this will give the birds the chance to escape to the field margins.
Geographical area
All arable land within the territory of Zagreb County.
The problem
The changes in farming practice that have taken place during the last decades in Zagreb
County are mainly the result of intensification of farming. These comprise the specialization of
production, a decrease in traditional farming, the use of high quantities of industrial fertilisers
and plant protection preparations, narrow crop rotations, changes in the types of crops grown,
loss of field boundaries, etc.
version of 14. 12. 2007; 239
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Cereals are planted on more than 80% of arable land in Zagreb County. This cropping pattern
results in a very narrow crop rotation with a small proportion of legumes and grass-clover
mixtures. The most common crop rotation pattern is a three-year rotation consisting of winter
wheat, maize and potatoes. However, many farmers have only two-year (maize/wheat) or have
no crop rotation at all.
With an average use of 233 kg N/ha of UAA, Zagreb County ranks as the second highest
nitrogen input region in Croatia and is well above the national average of 164 kg N/ha of UAA.
The water quality has been worsening and in 2004 has significantly decreased in comparison
with 2002. The excessive use of pesticides has caused soil pollution. The land reclamation and
intensive arable production has resulted in removal of hedges and other landscape features,
leading to the loss of valuable wildlife habitats.
Objective
The objective of this scheme is to stimulate agricultural measures that will prevent the
environmental degradation of soil and water and increase biological diversity on arable land.
Objectives
to reduce nutrient losses
to reduce the need for agrochemical inputs
to improve soil fertility
to increase overall farm biodiversity
Description of measure
Introduction of wider crop rotation on arable land
Management requirements
Cultivation of at least 4 different crops
Minimum share of each crop 15%
Share of maize should not exceed 40%
Share of cereals should not exceed 65%
Minimum share or grass-clover mixtures 15%
Objectives
to improve soil structure and fertility
to reduce soil erosion
to reduce nutrient losses
to reduce the need for agrochemical inputs
version of 14. 12. 2007; 240
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Description of measure
Sowing of crops with legumes, grass/legume mixtures or other crops
Management requirements
minimum 0,5 ha must be sown
sowing latest 3 weeks after harvesting of main crop
harvesting of green cover crops is prohibited
green cover crops must not be worked into the soil before 15th February the following
year
Objectives
To establish habitats for wildlife species
To increase overall biodiversity on arable farms
To improve the landscape identity of arable farms
Description of measure
Establishment of appropriate flowering strips on arable fields
Management requirements
Establish at least 3 m wide strips along the entire length or across fields
The minimum length eligible for payment is 200 m
Maximum surface area under hedges up to 15% of arable field
Use seed mixtures containing at least 5 flowering species, preferably adjusted to flower all year
round
The distance between strips should be at least 50 m
Application of pesticides and mineral fertilizers is not allowed
Practice non-chemical weed control only
Action 4: Hedgerows
The parcels separated by natural hedges contribute not only to the biological, but also
considerably to the landscape diversity. Hedgerows improve the landscape's value and are
efficient windbreaks. They host a myriad of insects, and provide habitats for a range of birds
and mammals. They are also a rich source of food for wildlife species throughout the year and
can be consumed by domestic animals, too. The best hedges have a variety of woody species
and a rich weedy flora at the base.
Objectives
Preserve the mosaic landscape structure as a part of Croatia's natural and cultural
heritage
Provide habitats for a range of wildlife species and allow migration and recolonisation
of species
version of 14. 12. 2007; 241
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Description of measure
Establishment and maintenance of hedgerows
Management requirements
The hedgerow should be at least 50 m long
The hedgerow should contain at least five different autochthones or domesticated plant
species
One tree should be planted every 25 m in the hedge
No use of mineral fertilisers or pesticides within 3 m of either side of the hedge
Regular trimming in order to keep hedges in shape
Maximum surface area under hedges up to 15% of arable field
2007 0
2008 0
2009 0
5.2.1.9. Indicators
Output indicators
Result indicators
percentage of uptake as compared to estimations and targets
area of proposed NATURA 2000 areas participating in the scheme
NP Velebit, NP Lonjsko polje – increase of recultivated abandoned land
preservation of endangered bird and plant species
Zagreb county – increase of crop rotation
Impact indicators
Reversing biodiversity decline – changes in trend in biodiversity decline as measured
by farmland bird species population
Improvement in water quality – changes in gross nutrient balance
Preservation of appearance of new endangered species
information and promotion activities. These activities will be supported under the sub-measure
1: “Acquisition of skills, animating the inhabitants of LAG territories.”
The implementation of the Local Development Strategy (LDS) under the Leader approach
under IPARD is limited to actions eligible and supported under the measures under Axis 3
within the IPARD programme.
The LEADER method will, until the Measure 501 on ‘Preparation and implementation of local
rural development strategies’ is accredited, be financed through the TA measure.
The LEADER approach for Croatia has been developed in cooperation with the relevant
stakeholders in order to ensure that the design of the LEADER approach matches the
demands and needs experienced in rural Croatia. This has been achieved by having MAFWM
staff participating in training workshops organised by stakeholders as speakers and by inviting
stakeholders to information sharing meetings within the MAFWM. This process is expected to
be ongoing in order to ensure a successful preparation and implementation of the LEADER
approach.
5.2.2.3. Objectives
The overall objective for the LEADER approach is ‘to promote rural development through local
initiatives and partnerships’. The rationale is that rural development through local initiatives will
contribute to the IPARD programme objectives being
to improve rural living and working conditions, including welfare,
to create new, sustainable income earning opportunities,
to preserve and create jobs,
to diversify economic activities
More specifically the objectives are:
to encourage and develop capacities of rural population to act together also through
cooperation projects,
to develop integrated local development strategies and to prepare the implementation
of those,
to promote local initiatives and partnership through involvement of local communities
as well as representatives of business and local government,
to transfer achievements, experiences and expertise and to make available information
and conclusions through networking
The operational objectives are as follows:
to enhance capacity among rural inhabitants and LAG members through training and
education,
to develop, organize and run LAGs,
to prepare and - if possible - begin implementing local development strategies in a
limited number,
to implement cooperation projects
Managing Authority,
Information, promotion NGOs and different Training, lectures,
and training activities for Month 1-4 associations /experts workshops,
forming LAGs contracted for this promotions etc.
activity
Managing Authority,
potential LAGs,
Preparation and drafting
technical support
of local development Training, workshops,
Month 6-18 (NGOs and different
strategies including studies, analysis etc
associations /experts
technical support
contracted for this
activity)
Pre-selection
process based on
the application
submitted.
Evaluation
Evaluation of proposals Committee will
Month 19-24 Evaluation
from LAGs. Preselection evaluate the
Committee
of potential LAGs submitted proposals
and makes it
recommendation to
the IPARD Agency
for
selection/approval
Implementation of
After selection of LAGs IPARD agency after
Implementation of local projects under axis
and approval of local recommendation of
development strategies 3 and cooperatives
development strategies LAGs
projects
2007 0
2008 0
2009 0
The eligible expenditure for covering running cost of the LAG will be available to the LAGs after
they have been successfully selected and contracted accordingly by the IPARD agency.
Activities
The following activities will be eligible under this sub measure:
Awareness and promotion activities
Defining and setting up LAGs
Advisory and experts services related to establish a LAG
Technical assistance for rural studies, regional analysis
Technical assistance for preparation of local development strategies including
training/education sessions and training-of-trainers
Eligible expenditure
Eligible expenditures for the Acquisition of skills and animating the local partners for
establishment a LAGs are:
Communicators/experts to inform about the LEADER approach and to assist in
developing local development strategies
Information and promotional events and seminars promoting the local development
strategies;
Workshops and information events for encouraging the active participation of the
population in the local development process;
Training and skills acquisition of the staff/team involved with the preparation and the
implementation of the local development strategy;
Training of leaders (local informal leaders living or working in the area);
Organizing other training necessary for the preparation or implementation of local
development strategies;
Elaboration and release/delivery of information materials necessary for the preparation
and publicity of the local development strategies (including Internet sites, brochures,
etc.);
Studies of the rural area concerned: (territorial, socio-economic analyses, etc.) for the
purposes of preparing a local development strategy;
The Managing Authority can chose to prepare information, promotion and training activities for
forming LAGs in cooperation with NGOs, municipalities, associations, etc.
Experts can be hired to assist the potential LAGs with preparing and drafting local development
strategies.
Final beneficiaries
The beneficiary will be the Managing Authority and potential LAGs.
Indicators
Table 5-15: Output, result and impact indicators for sub - measure 1
Sub measure 1
Type of
Indicators Targets
indicator
- Change in the knowledge level among - 50% of the beneficiaries find the promotion and
rural inhabitants about LEADER information activities useful and relevant (could
be based on statements from beneficiaries)
- Gross No. of jobs created or - 5-15 jobs created in LAG areas per year
The baseline data for this measure is zero in terms of the output and result indicators since this
is a new approach in Croatia. The baseline for impact indicators is estimated to be above zero
since work is already done in rural Croatia in order to build up capacity. The impact of theses
activities have however not been measured and it is therefore problematic to identity a
quantified baseline for the impact indicator.
Financial allocation
It is expected that approximately 30% of the Technical Assistance measure annually will
beallocated for this sub - measure (see Table 5-22). Allocation of funds for Measure 202 is
presented in the table 5-14.
Demarcation
Support for building up capacity within the MAFRD concerning LEADER will be a part of a
PHARE 2005 project on ‘Institutional capacity Building and Support for Implementation of
SAPARD/IPA-RD Programme in Croatia’. The project will also include study trips for relevant
staff and key stakeholders in order to exchange know how on implementation of LEADER
programmes. It is considered the LEADER activities supported under the IPARD programme
and the PHARE project is complementary and not overlapping.
It will be a task for the Managing Authority to define a demarcation line to the ROPs strategy
developed at county level. This should be clarified in the guidelines. The objectives and
priorities of the ROPs will have to be taken into consideration.
The aim of this sub measure is to ensure that local needs and demands are covered through
implementation of projects, which are in line with the local development strategies on the one
hand, and which also contribute to the fulfilment of the objectives hierarchy defined for the
IPARD Programme.
Activities
The activities of this measure will be to develop projects to be implemented in accordance with
the local development strategies.
The projects are to follow the objectives set out in Article 171(1) of Commission Regulation
(EU) No 718/2007 and correspond to the eligibility conditions established in the measures
under priority axis 3 (measures 4.3.1 and 4.3.2).
In addition hereto support will be given to run the LAGs, which include support for
administration, a LAG coordinator and other LAG employees, costs for keeping up premises for
the LAG activities, purchase of equipments, publicity activities, etc.
Eligible expenditures
The eligible expenditures for running costs under this sub measure are:
Co-financing of salary for a LAG manager and/or other employees,
Training activities,
Publicity and promotion activities,
Office rent, purchase of equipments,
Purchase of services (specialists, accountants, advisors, facilitator),
Studies of the area, marketing studies, exhibitions, social activities, workshops,
meetings etc.
Running costs of local action groups shall be eligible within a limit of 20% of the total public
expenditure of the local development strategy.
The implementation of the local development strategy is limited to those measures accredited
under axis 3 within the IPARD programme.
Administration
The local development strategies prepared by the LAGs and approved by the IPARD Agency
constitutes the frame of the local actions to be taken. The content of the individual projects will
be defined locally by the local applicants and will be in compliance with the local development
strategy. This recalls for an administrative procedure that includes a local recommendation
from the LAG. The administration procedure for the Leader will therefore be as follows:
Local project applicant will submit his/her application to the IPARD Agency in accordance with
the eligibility conditions established under the relevant measure (Measure 501.3.1 or 4.3.2). As
a part of the application, the applicant will include a letter of recommendation from the LAG
saying that the project is consistent with the local development strategy.
IPARD Agency will conduct the eligibility evaluation and ranking of the application in
accordance with the provisions under the measure concerned,
Approval or rejection letter will be submitted to the beneficiary by the IPARD Agency with a
copy to the LAG,
Project implementation begins,
The IPARD Agency will undertake scheduled and random on-the-spot checking of the strategy
and projects in progress,
Payments claims are submitted to the IPARD Agency,
Project finalization,
The steps are illustrated in the figure below.
Approval or
rejection letter will
be submitted to the Project
beneficiary by the finalization
IPARD Agency and
copy to the LAG
Final beneficiaries
Established LAGs whose local development strategy has been approved by the IPARD Agency
are final beneficiaries of this sub-measure.
Financial allocation
It is expected that the implementation of the local development strategies will begin 2010
indicating that no funds are allocated for 2007 – 2009. Allocation of funds for Measure 202
presented in the table 5-14.
Demarcation
Support for building up capacity within the MAFRD concerning LEADER will be a part of a
PHARE 2005 project on ‘Institutional capacity Building and Support for Implementation of
SAPARD/IPA-RD Programme in Croatia’. The project will also include study trips for relevant
staff and key stakeholders in order to exchange know how on implementation of LEADER
programmes. It is considered the LEADER activities supported under the IPARD programme
and the PHARE project is complementary and not overlapping.
It will be a task for the Managing Authority to define a demarcation line to the ROPs strategy
developed at county level. This should be clarified in the guidelines. The objectives and
priorities of the ROPs will have to be taken into consideration.
Eligible expenditure
Preparatory technical support e.g. studies, travel expenses, lodging/accomodation;
Joint actions e.g. exhibitions, seminars, meetings, workshops;
Running common organisational structures;
Animation activities;
Publicity concerning the project.
Final beneficiary
LAGs whose local development strategy has been approved by the IPARD Agency are final
beneficiaries of this sub-measure.
Indicators
Table 5-16: Output, result and impact indicators for sub – measure 3
Sub-measure 3
Type of
Indicator Target
indicator
Financial allocation
The implementation this sub-measure on cooperation projects is planned for 2010 under the
LEADER measure. Therefore no funds are allocated for this sub measure in 2007, 2008 and
2009. Allocation of funds for Measure 202 is presented in the table 5-14.
Fostering the development and improvement of the basic infrastructure is one of preconditions
for the development of a balanced economic growth in the rural area and for the enhancement
of the socio-economic living conditions of the rural population in Croatia. Major regional
differences as well as urban-rural disparities prevail in terms of quantity and quality aspects of
the existing local infrastructure, which is also partly due to war effects. The main discrepancies
between rural and urban areas are in sewerage and water supply system. In some counties
(e.g. Brod - Posavina) up to 28% of dwellings located in rural areas are not connected to a
sewerage system and 23% of rural households do not have running water supply. Eligibility for
investments in sewerage system and waste water treatment plant is given to local self-
government units within counties with ROP in place in which such investments are recognized
as needed. At the moment there are 19 counties with adopted ROPs (see Table 2-2). Creating
links between existing local strategies, such as ROPs, is contribution for future local planning
as regards preparation of local development strategies by local action groups on the Leader
approach basis.
Eligible investments for this sector will be:
investment in the construction and/or reconstruction of sewage system and/or
wastewaters treatment plants
A further obstacle for socio-economic development is the poor conditions of the local road
network. There are 10.535 km of local roads, of witch 10% are unclassified roads. Of all local
roads just 18% are in good condition. According the spatial planning, local self-government
units recently often designating areas for livestock farms outside the settlement, which should
be connected with the local roads.
Eligible investments for this sector will be:
investment in the construction and/or reconstruction of public local unclassified roads
H E AT I N G PLANTS
The increase of the energy usage of biomasses is defined in the strategic activities of the
National Forest Policy and Strategy. One priority is to use the organic waste from agriculture
and forestry as a heating source to improve the living conditions of the rural population and to
improve the environmental situation. In 2001, only 29,3% (according to OECD criterion),
respectively 18,1% (according to EU criterion), of the rural buildings were connected to the
central heating system. Investment in heating plants which use bio mass will improve this
situation in public institutions such as kindergartens, schools, ambulance, etc.
Eligible investments for this sector will be:
investment in the construction and/or reconstruction of heating systems which use
organic waste from agriculture and forestry (biomass)
F I R E P R E V E N T I O N PA S S A G E W I T H E L E M E N T S O F F O R E S T R O A D AS DEFINED BY
O R D I N A N C E O N P R O T E C T I O N O F F O R E S T F R O M F I R E (OG 25 /03)
In the coastal parts, forest fires present a large problem and risk for rural households and the
rural economy because every year they destroy approximately 14.300 ha of forested and other
land (the average refers to forest fires that occurred in the period 1992 - 2005). The least of the
surface areas taken by fire was in 2005 3.135 ha. The main reason for the large karst surface
affected is the inaccessibility of the terrain and insufficient number of fire-prevention roads,
which prevents fast and efficient intervention. Having an efficient fire-protection system
requires construction and maintenance of firebreak access roads. Additionally, in the
version of 14. 12. 2007; 257
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Mediterranean region agricultural land is very fragmented and dispersed in forests. One of the
reasons for the abandonment of agricultural land is the difficulty of approaching agricultural
land, because of lack of those multifunctional firebreak roads.
Eligible investments for this sector will be:
investment in construction and/or reconstruction of fire-prevention roads with elements
of forest road
local self-government units which have designated in the municipality/city spatial plan and in
the General Act, public local unclassified roads in the agricultural zones are eligible for support
H E AT I N G PLANTS
F I R E P R E V E N T I O N PA S S A G E W I T H E L E M E N T S O F F O R E S T R O A D AS DEFINED BY
O R D I N A N C E O N P R O T E C T I O N O F F O R E S T F R O M F I R E (OG 25 /03)
investments in the areas of I and II level of fire danger are eligible
version of 14. 12. 2007; 258
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Investment in sewerage system and waste water treatment If "yes" than 30 if "no" than 0 30
Additional ranking criteria in case where there are more projects for one sector
TOTAL 100
Source: MAFWM, DSDRA, 2007
5.3.1.13. Indicators
Output indicators
Number of villages with development actions (division per type of action, per
195
county)
OUTPUT
5.3.2.2. Objectives
This measure aims at contributing to the implementation of CAP and other related policies
within the scope of investments in rural areas, in particular to:
Increased income of the beneficiary rural population through the development and
diversification of on-farm and/or off-farm rural activities
Creation of new employment opportunities through the development and diversification
of on-farm and/or off-farm rural activities
Preservation of existing working places
Increased the volume of services for rural inhabitants and improve the quality of the
services provided
Improvement of social structure in the rural areas
RURAL TOURISM
Rural tourism is important for the economic, social and cultural development of the rural areas.
In 2005 in Croatia there were 310 farm tourism units with 756 total bed number and only 238 of
them have conditions to serve food. In order to provide Community standards in the tourism
and further development it is important to invest in new and existing tourism capacities. One of
the models how to develop rural tourism is to improve the outdoor activities like horse-riding,
mountain biking or sport fishing.
In the line with the sub-sector analysis and the objectives set in the IPARD strategy for Croatia,
the following investments will be eligible:
Investment in construction and/or reconstruction and/or equipment facilities of tourist
services, like rooms, toilets and other premises including objects for keeping animals
intended for tourism purposes, recreation facilities, tourist camps, improvement of
outdoor areas (for horse-riding, sports fishing on inland waters, mountain biking, eco-
paths), renovation of old buildings (old cellars, mills and others)
TRADITIONAL CRAFTS
Crafts have long tradition in rural areas of Croatia and also contribute to the diversification of
activities and gaining additional profits. One of the main problems are marketing and packaging
of finale products.
In the line with the sub-sector analysis and the objectives set in the IPARD strategy for Croatia,
the following investments will be eligible:
Investment in construction and/or reconstruction and/or equipment facilities for
traditional craft establishment, including facilities for packaging and marketing of
products
version of 14. 12. 2007; 262
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
DIRECT MARKETING
Diversification is also possible through direct marketing of agricultural products. In that case all
conditions and standards of animal and plant health must be satisfied. Small on-farm
processing plants for meat, dairy, fruit and vegetables products contribute both to the tourist
offer in the area and to additional income for farmers. Freshwater aquaculture as well as
mushroom production has the same role – additional activities and source of income.
In the line with the sub-sector analysis and the objectives set in the IPARD strategy for Croatia,
the following investments will be eligible:
Investments in construction and/or reconstruction and/or equipment facilities for setting
up selling points on farms for direct marketing of farm products, (for the individual or
joint (group of farm producers) interest
SERVICES
Way to keep young and educated people in the rural areas is setting up services in rural areas,
as additional source of income for private entrepreneurs and available services for population.
In the line with the sub-sector analysis and the objectives set in the IPARD strategy for Croatia,
the following investments will be eligible:
Investment in setting up (construction and/or reconstruction and/or equipment facilities)
of non-agricultural services in rural areas, like IT centres and workshops for machinery
reparation
O N - FA R M PROCESSING PLANTS
On farm processing plant are significant opportunity for diversification of activities on family
farms and source of additional income as well as for employment of family members. They are
also in close relation to rural tourism development through offer of wide range of products.
In the line with the sub-sector analysis and the objectives set in the IPARD strategy for Croatia,
the following investments will be eligible:
Investment in construction and/or reconstruction and/or equipment facilities of micro
processing plants on farms producing dairy and meat and fruit and vegetable products,
including facilities for packaging and marketing of products
MUSHROOM PRODUCTION
F R E S H W AT E R A Q U A C U LT U R E
RENEWABLE ENERGY
Nowadays, at the time of global warming, renewable energy resources are important for the
environment. Except large hydro centrals, the greatest contribution in the nearest future is
expected from biomass or bio fuels, as important economic activities for sustainability of rural
areas. Renewable energy resources contributes to the increase of biological and
environmental diversity, to the protection of soil and water, enables more efficient waste
management, also concerning waste from agriculture, forestry and wood industry. On this way
domestic industry can be stimulated and also new workplaces created, contributing to the
development of rural areas.
In the line with the sub-sector analysis and the objectives set in the IPARD strategy for Croatia,
the following investments will be eligible:
Investments in construction and/or reconstruction and/or equipment facilities of plants
for renewable energy resources usage (like bio diesel, biogas and others) on
agricultural holding
If the local rural development strategies, defined in Article 171 (3) (b) of IPA
Implementing Regulation (EC) No. 718/2007, have been established, investment must
be in line with those strategies;
Actions co-financed under Component III will be excluded from support under this
measure.
TRADITIONAL CRAFTS
• beneficiary must be registered according to the provisions of Craft Act (OG 49/03 see
page 321)
• investments are only eligible in the areas where there is an adopted PURs and/or
ROPs and/or CDSs which defines traditional crafts as priority development sector,
otherwise area is excluded
• investment must be in line with investments identified in related PURs and/or ROPs
and/or CDSs
• Traditional crafts, eligible for the support, are those in accordance with Ordinance on
traditional and artistic crafts (OG 112/07, 31st of October 2007) and listed in annex
Table 12-15
DIRECT MARKETING
ON – FA R M P R O C E S S I N G P L A N T S
F R E S H W AT E R A Q U A C U LT U R E
• Maximum capacity is limited to 150 t for trout production and 500 t for cyprinids
production
MUSHROOM PRODUCTION
Additional ranking criteria in case where there are more projects for one sector
TOTAL 100
Source: MAFRD, DRD, 2007
• Equipment, provided that their depreciation period is more than 1 year which has to be
shown in the business plan.
Detailed provisions shall be set out in sectoral agreements as defined in Article 7 of EC
Regulation No. 718/2007.
Rural tourism 25% 2.210.000 25% 2.389.333 25% 2.580.000 25% 9.013.333 25% 9.186.667 25.379.333
Crafts 10% 884.000 10% 955.733 10% 1.032.000 10% 901.333 10% 918.667 4.691.733
Direct marketing 10% 884.000 10% 955.733 10% 1.032.000 10% 901.333 10% 918.667 4.691.733
Processing plants 15% 1.326.000 15% 1.433.600 15% 1.548.000 15% 1.352.000 15% 1.378.000 7.037.600
Rural services 10% 884.000 10% 955.733 10% 1.032.000 10% 901.333 10% 918.667 4.691.733
Renewable energy resources 20% 1.768.000 20% 1.911.467 20% 2.064.000 20% 1.802.667 20% 1.837.333 9.383.467
Total 100% 8.840.000 100% 9.557.333 100% 10.320.000 100% 9.013.333 100% 9.186.667 46.917.333
5.3.2.13. Indicators
Table 5-23: Expected number of eligible investments per sector
Sector 2007 2008 2009 2010 2011 2012 2013 Total
5%
IMPACT Economic growth (increase in GVA)
5%
Employment creation (division per age/ gender)
5.4.1.2. Objective
The objectives of this measure are to assist in particular in implementation and monitoring of
the programme and its possible subsequent modification. In support of these aims, the
objectives include:
• to provide support for the monitoring of the programme
• to ensure an adequate flow of information and publicity
• to support studies, visits and seminars
• to provide support for external expertise
• to provide support for the evaluation of the programme
• to provide support for the future implementation of a national rural development
network
5.4.1.9. Indicators
Table 5-25: List of indicators for Measure 501
Activities/indicators
OUTPUT 2007 2008 2009 2010
TA
Number of MC meetings 2 2
Activities related to
1. the functioning of Number of events for MC working
MC groups (meetings, seminars, 3 6
workshops during the year)
Seminars,
workshops Number of trainings for the adoption
(including 4 10
of skills in IPARD area
2. functioning of
National Rural
Development
Network) Number of participants at seminars
100 150
and workshops
Experts to help or
advise the MC,
working groups, the
Committee for the
establishment of
the National Rural Number of expert contracted 6 6
Network on the
4. issues of
implementation and
functioning of
monitoring
preparation of
experts- technical
advisers, legal
expertise
Number of studies prepared by
6 6
expert
Number of expert days 75 75
Translation and
editing of
documents
6. Number of documents 40 40
requested by EC or
requested for the
meetings with EC
Raising of
awareness of local
people on the
participation in the
creation of a local
partnership through
acquisition of skills
and creating local
development
strategies-
awareness and
promotion
7. campaing for the Number of information and
3 3
potential LAGs- promotion activities completed
events, seminars,
workshops,
conferences,
meetings,
brochures, radio
and TV
commercials,
leaflets, web
advertising,
creation of web
sites
41“Regulation on the content and the scope of the responsibilities and the mandate of
competent bodies for the management of the Instrument for Pre-accession Assistance”, 8
February 2007 (OG 18/07).
version of 14. 12. 2007; 274
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
The Audit Authority competent for the IPA programme shall be responsible for the preparing
and fulfiling an annual audit work plan aimed at verifying the management and control systems
under the IPA programme, and the reliability of accounting information related to the
programme use. It shall also report to the National Authorising Officer and the European
Commission on the audit carried out within the framework of the IPA programme. The
organisational unit of the Ministry of Finance responsible for the external audit of EU funds
shall be the audit authority for the IPA programme.
The National Fund is a body in the Ministry of Finance with central budgetary competence. The
National Fund is acting as a central treasury and is in charge of tasks of financial management
of assistance under the IPA Regulation, under the responsibility of the National authorising
officer.
It shall in particular be in charge of organising the bank accounts, requesting funds from the
Commission, authorising the transfer of funds received from the Commission to the IPARD
Agency, and the financial reporting to the Commission.
The Head of the DRD is the head of the Managing Authority and is as such:
• responsible for all contents related to the RDP 2007-2013. Directly responsible to the
head of the Managing Authority shall be the Secretariat, which shall be tasked with
coordination at programme and axis level, and administrative support as well as
secretariat functions for the Monitoring Committee.
The Managing Authority shall approve criteria for project selection, monitor the implementation
of the collection of data for monitoring and assessment, inform beneficiaries of their obligations
stemming from the RDP 2007-2013, inform the public about the benefits of the RDP 2007-2013
and ensure balanced information flow between MAFRD and the IPARD Agency with a view to
ensure effective implementation of the RDP 2007-2013. The Managing Authority is tasked with
compiling annual and other reports for the Monitoring Committee, including documents related
to monitoring of the implementation of the RDP 2007-2013.
Managing Authority will be subjected to Audit and Accreditation, both national and EU. The
tasks and time of accreditation will be determened by EC.
The Managing Authority and the Paying Agency are conducting inline with national Regulation
on the Scope and Contents of Responsibilities and Authority of Bodies Responsible for
Managing the Instrument for Pre - accession Assistance (OG 34/08).
The DMSSA shall carry out the following implementing and paying tasks:
• arranging for tendering procedures, grant award procedures, the ensuing contracting,
and making payments to, and recovery from, the final beneficiary
• ensuring that the NAO, the National Fund and the Managing Authority receive all
information necessary for them to perform their tasks;
• selecting and checking operations in accordance with the criteria and mechanisms
applicable to the IPARD Programmes, and complying with the relevant Community and
national rules;
• carrying out checks to ensure that the expenditure declared has actually been incurred
in accordance with applicable rules, the products or services have been delivered in
accordance with the approval decision, and the payment requests by the final
beneficiary are correct. These checks shall cover financial, administrative, technical
and physical aspects of operations, as appropriate;
• making calls for applications and publicising terms and conditions for eligibility;
• checking of applications for approval of projects against terms and eligibility conditions,
and compliance with the Agreements including, where appropriate, public procurement
provisions; (see also tendering procedures above;
• laying down contractual obligations in writing between the IPARD Agency and the final
beneficiaries including information on possible sanctions in the event of non-
compliance with those obligations and, where necessary, the issue of approval to
commence work;
• execution of on-the-spot checks to establish eligibility both prior to and following project
approval;
• follow-up actions to ensure progress of projects being implemented;
• reporting of progress of measures being implemented against indicators;
• ensuring that the final beneficiary is made aware of the Community contribution to the
project;
The DMSSA has adequate internal controls especially controls linked with sound financial
management.
The DMSSA internal Audit Department has an independent examination function above all the
operational level of the DMSSA comprising of the following:
• checking the legitimacy, regularaity and timeliness of the operation of the DMSSA and
the assessment of the current status and comparison of this with required sitation;
• Identification and assessment of causes for any deviation from the prescribed
operation of the DMSSA;
• Defining actions for improving operations, working process, protecting assets, and
prevention and discovery of irregularities and frauds in the work of the DMSSA.
The DMSSA has a system for preventing and reporting on irregularities and suspicions of
fraud. The central unit for implementing procedures in the event of discovery and for preventing
and reporting irregularities and suspecions of fraud is the department for control of measures
within the SAPARD programme, which reports to the National Fund
The DMSSA has a system for risk management wich is based on the Methodology for risk
management.
A ranking system will be applied and a ranking list formed and priority given to investments with
higher points. Selection of eligible projects shall be carried out using critera laid down in each
of the technical measures under chapters: 5.1.1.8, 5.1.2.8, 5.3.1.8 and 5.3.2.8.
After administrative control eligible applications will be checked on the spot by department for
control of measures.
After administrative control and control on the spot the eligible projects for financing will be
contracted until the time that the allocated funds is used up.
Procedure for checking of payment claims is the same to above described procedure for
checking applications.
The Department for Financial Affairs will prepare and send Request for funds to the National
Fund. According to Request for funds, NF will transfer funds to IPARD EURO account of the
DMSSA. DMSSA is obliged to transfer funds at the same day, from IPARD EURO account to
the beneficiarys bank account exclusively.
The Department for Accounting will perform book-keeping of commitments, payments, debtors
and recoveries. It will also prepare financial reports in given terms.
After the finalization of project, veterinary and environmental services will make a control to
determine whether the Community standards are respected as it is a common eligibility
criterion.
All the provisions stated above are subjected to accreditation and possibly change and the final
provisions will be laid down in DMSSA manual.
contributes to the economy by strengthening the labour market (training and education, which
is complementary to investments under the IPARD).
There is a possible overlap between component Regional Development and IPARD.
Coordination of the measures with IPARD measures will be carried out systematically through
the inclusion of a representative of the MAFRD in the Regional Development component
working group. The investments in basic infrastructure proposed under the IPARD are mainly
oriented to increase of the quality of daily life. In the case of the Regional Development the
specific projects will be oriented towards supporting economic activities. The other component
of the rural development priority under IPARD concerns direct investments into crafts and
holdings with the purpose of enhancing rural tourist services and direct marketing of
agricultural products. With this component there is no overlap at this time: firstly, because
tourism-related services and infrastructure envisaged under the Regional Development
component are of public character and secondly, because investments into SMEs do not target
SMEs in agriculture or rural tourism.
The IPARD measures will complement the implementation of the National Agricultural and
Fishery Strategy. Based on Act of State Aid for Agriculture, Fishery and Forestry, Croatian
Government supports development of agricultural sector and rural areas through national
support schemmes. National support is focused on wide range of beneficiares (farmers, non-
commercial producers, local self-government, associations and cooperatives, etc.) and wide
range of investments.
On the other hand, IPARD founds are targeted to limited number of sectors, eligible
investments and final beneficiaries. They are focused at viable producers, with clear priority
objective to support them in upgrading to Community standards and facilitate their
competitiveness. National schemes and IPARD funds in that way complement each other by
providing necessary support to different beneficiaries with division of objectives (see Table
6-1).
Table 6-1:Complementarity and demarcation between national support schemes and IPARD
programme
Corresponding Demarcation/complementarity
IPARD measures national support
schemes IPARD National support schemes
Targeted No size/level of
beneficiaries production criteria for
according to size/level participation in program
of production
Financing only by credits
Possible financing of
investments with own Support up to 25% of
resources credit amount, but not
more than 34.153 kn/year
Support from up to per beneficiary
50% to 75% of
eligible expenditures Minimum value of credit
10.928 EUR
Minimum value of
Capital investment investment 13.500 Purchase of animals,
scheme (CIS) EUR mechanization and
Investments in
agricultural land eligible
agricultural holdings
Fixed amount of
investment value per Permanent crops
beneficiary plantations eligible
Targeted
beneficiaries
according to size/level
of production
Possible financing of
investments with own
resources
Support up to 50% of No size/level of
eligible expenditures production criteria for
Minimum value of participation in program
investment 33.800 Financing only by credits
EUR
Support up to 25% of
Fixed amount of credit amount, but not
investment value per more than 34.153 kn/year
beneficiary per beneficiary
Processing and
marketing of Capital investment Construction of new Minimum value of credit
agricultural and scheme (CIS) processing plants in 10.928 EUR
fishery products dairy and meat sector
not eligible Construction eligible in all
agricultural sectors
Investments in
establishments with Establishments with EU
EU export number not export number eligible for
eligible support
Investments in fruit Not related to compliance
and vegetable sector with Community
related to national standards
measure for
producers
organizations set up
Compliance with
relevant Community
standards at the end
of investment
eligibility criteria
Actions to improve
No corresponding
environment and / /
national measure
countryside
Preparation and
implementation of
No corresponding
local rural / /
national measure
development
strategies
rural infrastructure
Table 7-1: Maximum EU contribution for IPARD funds in EUR, 2007 - 2011
Year 2007 2008 2009 2010 2011 2007-2011
TOTAL 25.500.000 25.600.000 25.800.000 26.000.000 26.500.000 129.400.000
Source: MAFRD - DRD, 2009
Table 7-2: Financial plan per priority axis in EUR, 2007 - 2011
Total public aid EU contribution rate EU Contribution
1 2 (3=4/2), % 4
Priority Axis 1 - Improving market
efficiency and implementing Community 112.094.667 75,00% 84.071.000
Standards
Priority Axis 2 - Preparatory actions for
the implementation of agri- 3.612.500 80,00% 2.890.000
environmental measures and Leader
Measure 1 Investments in
41.048.000 41.048.000 82.096.000
agricultural holdings
Measure 2: Support for producer
0 0 0
groups
Measure 3: Investments in the
processing and marketing of 71.046.667 71.046.667 142.093.333
agriculture and fishery products
Priority Axis 2 - Preparatory
actions for the implementation of
3.612.500 0 3.612.500
agri-environmental measures and
Leader
Measure 4 Preparation for
implementation of actions relating to 1.643.750 0 1.643.750
environment and the countryside
Measure 5: Preparation and
implementation of local rural 1.968.750 0 1.968.750
development strategies
Priority Axis 3 - Development of
51.424.000 23.458.667 74.882.667
the rural economy
Measure 6: Improvement and
27.965.333 0 27.965.333
development of rural infrastructure
Measure 7: Diversification and
development of rural economic 23.458.667 23.458.667 46.917.333
activities
Measure 8: Improvement of training 0 0 0
Measure 9: Technical assistance 4.838.750 0 4.838.750
Total 171.969.917 135.553.333 307.523.250
Source: MAFRD - DRD, 2009
Priority Axes and Measures EUR EUR EUR EUR EUR EUR %
Measure 1 Investments in agricultural holdings 6.375.000 6.144.000 6.192.000 5.980.000 6.095.000 30.786.000,00 23,8%
Measure 9: Technical assistance(3) 765.000 1.024.000 1.032.000 520.000 530.000 3.871.000,00 3,0%
Measure 1: Investments in
24% 23% 23% 23% 23%
agricultural holdings
Measure 2: Support for
0% 0% 0% 0% 0%
producer groups
Measure 3: Investments in
the processing and marketing of 41% 40% 39% 39% 39%
agriculture and fishery products
Priority Axis 2 - Preparatory
actions for the implementation of
3% 5% 6% 7% 7%
agri-environmental measures and
Leader
Measure 4 Preparation for
implementation of actions relating
1% 2% 3% 3% 3%
to environment and the
countryside
investments and costs, beneficiaries, eligibility criteria, financing criteria and the frame of the
administrative procedures (application and supporting documents, checking of applications,
approval, payments claims, payments, control system).
Priority Axis 3 with development measures “Improvement and development of rural
infrastructure” and “Diversification and development of rural economic activities” including
objectives, sub-measures, eligible investments and costs, beneficiaries, eligibility criteria,
financing criteria and the frame of the administrative procedures (application and supporting
documents, checking of applications, approval, tendering procedures, payments claims,
payments, control system).
Technical Assistance measure “Technical Assistance, Information and Publicity Campaigns”
incl. objectives, eligible projects, beneficiary, tendering procedures.
IPARD presentations will be targeted to final beneficiaries as defined per priority axes and
measures under chapter 5.
Additionally MAFRD and Paying Agency will continue to elaborate and issue different
information materials on IPARD:
Leaflets, Posters:
Concise information in simple language on the 3 Priority Axis and their measures with the
same content as stated above
Newspapers
Articles on the IPARD Programme and the contribution of its measures for the agricultural and
rural development in Croatia in the general press and in professional newspapers including
interviews with representatives of the MAFRD coordinated by the Public Relation Department
of the MAFRD
TV and radio
Presentation of the IPARD Programme and the contribution of its measures for the agricultural
and rural development in Croatia in TV and Radio including interviews with representatives of
the MAFRD coordinated by the Public Relation Department of the MAFRD
Web
General information on the IPARD Plan for Agricultural and Rural Development in Croatia
including concise information on the objectives of the EU IPARD programme, its legal
framework, and the context of the 7 measures on the website of the MAFRD.
Detailed information on the procedures for application, approval, payments and control for
each measure on the website of the MAFRD/ Paying Agency (at time when the procedures are
on the way to be accredited).
Other
Preparation of a Beneficiary Guide per IPARD measure (free of charge and for downloading
from the Websites of the MAFRD / Paying Agency) with detailed information specified for each
measure/ sub-measure (objectives, eligible investments and costs per sub-measure, eligibility
criteria, beneficiary, co-financing mechanism), and the accredited administrative procedures
(application, contracting, payment, tendering procedures, control).
Presentation of the IPARD programme and the contribution of its measures for the agricultural
and rural development in Croatia on national and regional fairs, exhibitions etc.
9.1. M ONITORING
The monitoring of the IPARD Programme is one of the crucial segments of Programme
implementation. Monitoring is a core management responsibility, which involves the systematic
and regular collection, analysis, communication and use of information for the purposes of
management and decision-making, concerning the direction of the programme, including at
priority, measure and project level.
Monitoring is carried out according to the pre-determined and agreed output, results and
impacts indicators set out in Chapter 4 and explained under each measure. Also, the
monitoring has a qualitative dimension as well since not all results and impacts can be
measured in numbers and figures e.g. performance needs to be described and explained. In
order to be able to take decisions, monitoring includes not only assessment of any variance
against the Plan, but also analysis of the reason for such variances.
According to IPA Implementing Regulation (EC) No. 718/2007 article 193 it is the obligation of
beneficiary country to send annual progress reports not later than 6 months after the end of
each full calendar year of programme implementation to EC and National IPA co-ordinator after
Monitoring Committee approves that report. Such annual reports shall contain information
regarding:
• the implementation progress, covering in particular, the attainment of set objectives
• the problems encountered in managing the programme, and the measures taken,
• financial execution,
• monitoring and evaluation activities carried out
These annual Reports shall be submitted to Monitoring Committee for prior assessment before
sending them to EC.
Final report shall be submitted to EC not later than six months after the final date of eligibility of
expenditure under the programme.
• to review and approve every proposal for amendment of the Plan before it is delivered
to the Commission.
Further provisions for monitoring and reporting may be set out in the sectoral and financing
agreements.
9.2. E VALUATION
The monitoring indicators for the IPARD Plan should not only enable the effective
implementation of the constituent activities, but will also allow for evaluation of both socio-
economic and environmental impact at the micro level, and developmental impacts for
administrative capacity
Evaluation is concerned with assessing the relevance and utility, efficiency, effectiveness of the
financial assistance, which has been committed as well as the impact and sustainability of the
outputs and results achieved.
Ultimately, evaluation is about drawing out lessons and best practices from these findings in
order to improve the design of the IPA programme itself, both in the preparatory stage (ex ante
evaluation), during real-time implementation of the OPs, so that immediate adjustments can be
made (ongoing and interim evaluation) and on completion of the programme with a view to
shaping future programmes based on evolving needs (ex post evaluation).
The obligation to evaluate IPARD Programme has been set by Article 57 and 191 of IPA
Implementing Regulation (EC) No. 718/2007 saying that the programme shall be subjected to
ex ante, ex post and, where appropriate, interim evaluations carried out by independent
evaluators under the responsibility of the Managing Authority. These evaluations are aimed at
assessment of the performance of the programme and of its effects. During the period of
implementation of the programme, where appropriate, interim evaluation can be carried out,
and specifically when the monitoring of the programme reveals significant departure from the
goals initially set.
The evaluation should address the following aspects:
• The original validity of the plan rationale
• The degree to which objectives have been achieved
• The public expenditure/resource costs involved
version of 14. 12. 2007; 288
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
10. PARTNERSHIP
DRD – Managing Authority of SAPARD/IPARD programme is appointed as competent state
body responsible for the coordination of the fifth IPA component – Rural development and for
the preparation of Agriculture and rural development plan 2007 – 2013.
In this purpose, DRD has established preparation committee for the elaboration of IPARD plan
consisting of three levels.
First two levels include representatives of all Directorates of the MAFRD and also members
from the Ministry of Culture, Ministry of the Sea, Tourism, Traffic and Development, Faculty of
Agriculture and Office for Agriculture and Forestry of City of Zagreb.
The first and the second level of the preparation committee have constructed the first draft of
the plan, including sector analysis and have specified main priorities in accordance with the
objectives of IPARD.
The preparation committee of the first and the second level has been appointed by the
ordinance from the Minister of Agriculture on 7th of April 2006.
Third level comprises other Ministerial and also economy, social and ecological partners listed
bellow:
1. Ministry of Environment Protection, Spatial Planning and Construction
2. Ministry of Foreign Affairs and European Integrations
3. Ministry of Finance
4. Ministry of Economy, Labour and Entrepreneurship
5. Central State Office for Development Strategy and Coordination of EU Funds
6. Central Bureau of Statistics
7. State Institute for Protection of Nature
8. Croatian Chambers of Economy
9. Croatian Chambers of Crafts
10. Croatian Livestock Centre
11. Croatian Agricultural Extension Institute
12. Croatian Cooperatives' Alliance
13. Union of Municipalities and Towns
14. Municipality Turopolje
15. Croatian Union of Counties
16. Croatian Union of Employers
17. Green Forum – association for nature, environment and sustainable development
18. Croatian Network for Rural Development
19. Tourism Association, Sisak
20. Park of Nature Lonjsko polje
21. Association of HF Cattle Breeders
22. Association of Simmental Cattle Breeders
23. Union of Croatian Associations of Vegetable Producers
24. Association of Croatian Poultry Breeders
Representatives of food
Inclusion of beneficiaries with EU processing industry in Not accepted: it is not in line with
export number as eligible for cooperation with Croatian MIPD and IPARD objectives
support under Measure 103.: Chambers of Economy (upgrading to Community
Processing and marketing of
Economical Interest Association standards)
agricultural and fishery products
„Croatiastočar“
negative impact. In relation to eligibility of applications under the measures it is generally stated
that he activities needs to comply with minimum national and EU standards, concerning
environmental issues as well.
Full list of recommendations and whether they were accepted and in what way or rejected is
given in Table 11-1
The description of the current situation takes up approximately 200 pages Accepted
out of 344. This is assessed being too much taking away focus from the
Analysis core of the strategy, and it is therefore recommended to shorten down the
1
description in a more summarized description, and to move the detailed
and again very informative current description to annexes. Concrete
suggestions are provided in the evaluation report.
The sector analyses are comprehensive and detailed, and we understand Accepted partially – only tables were moved to the annex and the text was
that an independent assessment of these analyses is being made. We revised.
2 have therefore no qualitative comments, but recommend that the sections
are summarized in the main text and the chapter moved to annexes, see
recommendation 1.
The section on the HACCP system implementation under 1.3.6.5 is very Accepted
long and very detailed. It is recommended that this part is shortened down,
3
and only introductory and the most important and needed information is left
in the main text of the programme,
The section on the fishery sector (1.3.6.6) needs either to be shorten Accepted
5 downed or even deleted taking into consideration the comments from the
EC Commission regarding support for fishery,
Tables 1-127, 1-128, 1-129 and 1-130 on Fresh Fruit import and export and Accepted
6
processing could with advantages be moved to an annex (page 150 – 154),
Section 1.3.9 outlines the different public services in agriculture and food Accepted
industry. The information is considered relevant, but the volume of it seems
8
to be too comprehensive and could therefore with advantages be shorten
down.
The ex ante evaluator is however aware of initiates taken by the MAFRD on Accepted
the Leader issue and that negotiations with the Commission has been
finalized regarding how to finance the Leader approach. This said, it is of
10 course advised to include a section in the chapter on the current situation
presenting the status of local governance, public-private partnerships and
bottom-up approaches. Likewise, a technical sheet is needed following the
measure fiche developed by the Commission for the Leader approach.
In order to make the strategy-building potential of the SWOT more obvious Not accepted – it is considered that SWOT analysis presented as such give
it could be considered including a section that reflects upon how the good overview of situation in sectors
identified internal Strengths and Weaknesses on the one hand and external
11 Opportunities and Threats on the other hand can be turned into possible
strategies ensuring that internal strengths are utilized and internal
weaknesses eliminated in order to take advantage of the external
opportunities and to meet the external threats
The coherence between the description of the current situation and the Accepted
SWOT-analysis and vice versa needs to be double-checked e.g. ‘new
highway network and telecommunication network constructed’, is listed as
an opportunity, but is not mentioned in the description of the current
12
situation. The same goes for the strength ‘local government structure
experienced in local development’. The question is if this is justified as
strength in the description of the current situation. Similar goes for the
threat about ‘low organization degree of rural society’.
There is a need to go through the SWOT analyses in order to ensure that Accepted
the content of each analysis is of relevance for the described sector. For
13
SWOT instance, what is the relevance of mentioning ‘no official Rural
Development Strategy’ under the SWOT for Agri environment?
A solid objective hierarchy is characterized by having a clear link from the Accepted
global/overall level down to the operational level. The links in the current
19 IPARD are to a great extent made clear, but in order to make it more
evident it is recommended to ensure that there is coherence between the
text outlined in chapter 3 and figure 3-1.
Especially, there seems to be disharmony between table 3-1 and figure 3-1 Accepted
Objective concerning description of priorities and specific objectives. These two are
20
hierarchy adequately divided into separate formulations in the table 3-1 whereas the
specific objectives in figure 3-1 are presented as being equal to priorities.
One comment could also be addressed to the wording of the first priority. Not accepted - Wording is taken over from the EC draft implementing
Improving market efficiency will, if we take the words literally, have to do regulation, of March 23, 2007, Article 171 paragraph 1(a)
with an improvement of the way the market functions. Our recommendation
21
is that the text of priority 1 is changed reflecting the objectives of the
programme expressed as specific and measure objectives, if this is then
intention of the plan.
Baseline data, results as well as impacts indicators have not been defined Accepted
and quantified for the priorities at the programme level. This is however a
requirement from the EC Commission and it is therefore a task, which the
22 Indicators
MAFRD will be expected to handle. It is recommendable to insert a section
regarding indicators after the presentation of the objective hierarchy. An
example is provided in the evaluation
The demarcation lines between the IPARD Plan and the other 4 Accepted
components under the IPA regulation (EC1085/2006) are missing. This
description is recommended included in order to show how the demarcation
Demarcation lines are agreed making it evident for the beneficiaries when to apply for
25
lines support under the IPARD Plan and when to make use e.g. the component
on Regional Development or Human Resource Development. This
demarcation line is furthermore essential in relation to avoiding any double
payments between the funds for the same activity.
The administrative setup for the IPARD Plan is not explicitly described in Accepted
the current draft. It is though the understanding of the evaluator that the
administrative set up largely will build on experiences from the SAPARD
26 programme. Attention needs though to be paid - at least at the start of the
programming period - to the accreditation and administrative preparations
for implementation of new measures, and to establishment of an efficient
monitoring system.
The description of the monitoring systems could also with advantages Accepted
29 outline the methods applied for data gathering. So far, the reporting at
beneficiary level is not organised and/or explained.
It is suggested to insert an indicative budget for implementing the Not accepted – due to fact that it will be financed from national and other
33
information plan available sources other than EU
It is highly recommended that MAFRD develops the partnership model for Accepted
the implementation of the Plan. The partnership involvement is an ongoing
process and not just related to the preparation phase. One way to ensure
35 Partnership
this is to include and actively involve social and economic partners in the
Monitoring Committee, for example providing the stakeholders training in
order to be able to participate actively.
A general recommendation relates to establishment of an objective Accepted – priorities at the measure level are defined by indicative financial
hierarchy at the measure level, and to the quantification of objectives and allocation
All
36 targets. It is recommended to prepare measure objective hierarchy for each
measures
measure, also linking it to the quantification of targets. A generic example is
provided in the evaluation.
Indicators have been developed for measure 1 at output, result and impact Accepted partially – it would over burden the system if indicators would be
level. However, the indicators are not entirely sufficient. The indicators prepared on investment level
Measure could in the case of the output indicators go more into detail with the type of
37 101 investments and in the case of the result indicators they could go more into
detail the extend of the actual improvements. Also impact indicators could
be improved. It is recommended done.
The measure sheet does not express any experiences from previous Accepted - Experiences and lessons learned from SAPARD program are
programmes. We are informed that experiences from the SAPARD further elaborated under chapter 3.2.11.1.
38 programme are collected in this regard (eligibility criteria) and that steps
have been taken to make the administration in line with these experiences.
This could be included.
Additional support is made available for young farmers, but age is not Accepted
included as ranking criteria. Is that a mistake or is it deliberately excluded?
40
We recommend considering to include this as ranking criteria making the
criteria in line with the support rates.
There are no indications that the administrative procedures will lead to Accepted
bottlenecks or other administrative problems. However, we find that it could
be better explained, how applications will be reviewed: Will it be in the order
42
of their submission following a first in first served approach, or will the
applications be compared according to the ranking system making it
possible to support late comers on the expense of the first in applications?
The eligibility and ranking criteria seem to be adequate. However, we have Accepted
the same reservations concerning priority to LFAs as mentioned under
measure 1, and we have also the same comments concerning restrictions
Measure and limitations in project volume and numbers of projects as discussed for
43
103 measure 1. With regard ranking criteria 2 (Enterprise has a contract with
domestic producers for raw material supply), it should be ensured that
these kind of contracts typically will be formalized and written on paper so
that copies can be send to the administrative authority.
The expected results and impacts are described on a general level and are Accepted
found in full accordance with programme objectives and SWOT analysis
44 (and AE specific analysis). With missing indicators the expected results are
also only described to a limited extent. Baseline data is not available in the
Measure presentation of the measure and comparison can naturally not be done.
201
Objectives are not quantified in the description of the measure. The Accepted
measure has character of a “pilot approach” targeting 3 specific sites with
45
individual selection criteria for activities to be funded, but they are not
quantified and nothing can in that context be analyzed related to realism.
It is our assessment that there is a clear relationship between the measure Accepted
objectives and the objective hierarchy of the IPARD resulting in a
satisfactory argumentation from main problems/disparities to objectives and
46 to measures. It is however noted that insufficient water pipeline connections
Measure
in rural areas – mentioned as a weakness in the SWOT – are not
202
addressed in the measure. The argumentation for addressing this aspect
should be presented.
47 The identification of expected results and impacts are not adequate in the Accepted
submitted draft. Additional working time and resources are needed in order
version of 14. 12. 2007; 302
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Table 11-2: Results and findings of external evaluation of sub sector analysis
Sub- Quality and objectivity of SWOT Justifiability of the proposed
Quality and objectivity MAFRD comments
sector analysis measures
Sub-sector Quality and objectivity Quality and objectivity of SWOT analysis Justifiability of the proposed MAFRD comments
measures
Current situation analysis SWOT analysis for vegetables should be Proposed measures are justified Recommendations were taken into
should be improved by new elaborated separately from fruits with regard to the current consideration, when applicable
Vegetables statistical data situation, needs and potentials concerning legal framework and
There are a number of "weaknesses" in the vegetables sector objectives of IPARD
In the analysis there are no that should be stressed: a small number
data on producers (family of sorts and varieties of vegetables in a Investments in the processing As EC position was respected
version of 14. 12. 2007; 308
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
farms, business entities) commercial production; limited and and marketing will contribute to regarding investments in irrigation
seasonal supply; production "only" for the vegetables processing as system and regarding significance of
the domestic (Croatian) market; one of the less developed this sector, compared with others, list
unorganized producers and lack of segments of the food industry of eligible investments was shorten
market infrastructure; lack of the
irrigation systems, sorting and storage SWOT analysis was separated from
facilities, cold-storage plants for fresh fruits
vegetables; the vegetable processing is
one of the less developed segments of
the food industry
As the "opportunity" it should be noted
the development of the export strategy
for the vegetables sector, increasing the
yields and decreasing the production
costs, implementation of new
technologies for a prolonged production
period; increasing the specialization;
preparing the quality standards in line
with the EU legislation
Grape and Fact that in Croatia there are As "weaknesses" should be mentioned: Investments in construction Recommendations were taken into
wine different sources of statistical fragmented production areas, great and/or reconstruction and/or consideration, when applicable
data, used in the analysis, on number of grape varieties and wine equipment facilities of wineries concerning legal framework and
version of 14. 12. 2007; 309
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
production areas, and yields in sorts, production only for domestic are justified because of the lack objectives of IPARD
grape production, as well as on Croatian market, weak organization of of processing capacities
wine, should be emphasized producers work, lack of irrigation Regarding significance of this sector,
systems Production of vine-seedlings, compared with others, measure was
Regarding the producers and construction of (new) plantations not extended by additional eligible
the wine production, it should As "opportunities" should be mentioned: and grape production should investments
be stressed that recently was developing the strategy of wine export also be supported
noticed the significant (together with planned dynamism of wine
phenomenon of specialized and viticulture development), increasing
wine-grape growers yields and decreasing costs in
production of grapes, implementation of
It should be stressed that new technologies in production, creating
during the past few years the the quality standards according to the
trend has been noted of EU legislation (ISO and HACCP
building a greater number of systems), protection of wine origin,
smaller wineries with modern guarantee for product authenticity and
production, high quality of purity on its way to the consumers,
products and successful joined supply, control over procedures
appearance on the wine and disloyal competition
markets
12. A NNEX
12.1. N ATIONAL LEGISLATION
Chapter below contains legal provisions and strategies directly or indirectly concerning
measures which are an integral part of the Plan for Agriculture and Rural Development of the
Republic of Croatia (IPARD Programme).
In total, 63 acts and strategies have been taken into consideration.
Each sector contains a general introduction, after which the policy goals and strategic activities
for reaching those goals are dealt with. Each activity has got the organisation and the
institution responsible for its implementation defined. Where possible, partner organisations
with an important role in cooperation shall be identified, even though they shall not have the
primary responsibility for the implementation. The said activities are attributed one of the three
priority degrees:
Priority I – Short-term priorities implemented in the period 2003 - 2006
Priority II - Medium-term priorities implemented in the period 2006 - 2008
Priority III – Long-term priorities implemented after 2008
It is important to state that the implementation documentation containing conditions,
instructions and expenses shall be processed according to the priority degree for each activity
defined in the document.
3. Act on State Support to Agriculture, Fishery and Forestry (OG 87/02 of 23 July 2002,
117/03 of 23 July 2003, 82/04 of 17 June 2004, 12/05 of 24 January 2005, 85/06 of 26 July
2006 and 141/06 of 27 December 2006)
The new Act on State Aid to Agriculture, Fishery and Forestry, which has entered into force on
1 January 2003, envisages the following changes in the agricultural policy:
splitting of commercial from non-commercial farms;
compulsory registration of all producers in the “Register of Agricultural Holdings”;
compulsory integration of all commercial farms in the value added tax (VAT) system in 2008.
4. Agricultural Land Act (OG 66/01 of 20 July 2001, 87/02 of 23 July 2002, 48/05 of 13 April
2005 and 90/05 of 25 July 2005)
This Act describes the objectives and the development programme for agriculture and rural
areas until 2005 in the part referring to the structure of farms, agriculture and the environment.
The Act on agricultural land (OG 66/01) defines the task of the local self-government (districts
and towns) to manage directly the state-owned agricultural land.
Districts and towns have the right and duty to develop their plans for land management (sale,
leasing, concession and donation) on the basis of the guidelines contained in the “Strategy on
management of state-owned agricultural land” (Government of the Republic of Croatia, 15
October 2001) and the “Measures and conditions for privatisation of the agricultural land” (OG
13/02).
5. Food Act (OG 46/07 of 7 May 2007)
This Act determines:
general principles and requirements related to hygiene and the sanitary safety of food and
feed;
obligations of subjects in dealing with food and feed regarding hygiene and the sanitary safety
of food and feed;
powers and responsibilities of competent institutions concerning food and feed manufactured in
the Republic of Croatia or imported and marketed in the Republic of Croatia;
This Act is to be applied on all stages of production, processing, warehousing and distribution
of food and feed, except from the primary production, preparation, handling and warehousing
of food intended for personal use or feed for farm animals not intended for sale.
6. Act on Special Conditions for Marketing Flour (OG 48/04 of 14 April 2004, 130/04 of 20
September 2004, 140/05 of 28 November 2005 and 143/05 of 5 December 2005)
This Act determines the manner and the procedure for registering and labelling the produced,
the imported or the exported flour, which must have register labels in order to be marketed.
According to this Act, flour is a product obtained from grinding wheat, rye and corn and
intended for human nutrition. The marketing of flour implies its sale, transport, warehousing
version of 14. 12. 2007; 313
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
and storage for sale, as well as any kind of exchange, substitution or cession of flour against
payment or free of charge, supply of flour for the service of wheat, rye and corn grinding, own
processing, and import and export of flour.
The Act strictly defines the rights and obligations of persons in charge for labelling of flour,
record-keeping, supervision, etc.
7. Act on Geographical Indications and Designations of Origin of Products and Services (OG
173/03 of 31 October 2003 and 186/03 of 24 November 2004)
This Act determines the manner of acquisition, protection system and obtaining of rights on the
use of geographical indications and the designations of origin of products and services.
The provisions of this Act are not applied on products and services where the acquisition,
protection system and obtaining of rights on the use of the geographical indication and the
designation of origin are determined by special regulations.
The geographical indication contains the name of the region, a specific place or, in special
cases, the name of the country; it is used for labelling products or services originating from the
given region, place or country and detaining a certain quality, prestige or other properties
ascribed to the relevant geographical origin; the manufacturing and/or processing and/or
preparation of the given products or services is to be carried out in the relevant geographical
area.
The geographical indication may also be another label on products and services from a certain
geographical area, if complying with the conditions contained in paragraph 1 of this Article.
The designation of origin contains the name of the area, a specific place or, in special cases,
the name of the country; it is used for labelling products or services originating from the given
area, a specific place or country and detaining a certain quality or properties that essentially or
exclusively are a result of special natural or human factors in the relevant geographical area;
the manufacturing, processing and preparation of the given products or services is to be
entirely carried out in the relevant geographical area.
8. General Product Safety Act (OG 158/03 of 7 October 2003)
This Act determines the general safety of marketed products.
This Act applies to all products defined in accordance with this Act in cases in which a special
Act or regulation adopted for the implementation of such Act do not solve the safety issue of a
certain product.
Pursuant to this Act, a product is deemed safe:
if it fulfils all requirements contained in technical regulations referring to it;
where appropriate technical regulations are lacking, if it complies with Croatian Acts based on
European regulations, the list of which has been published in the Croatian Official Gazette;
where appropriate technical regulations or Acts are lacking, if the product complies with
Croatian Acts that have not yet been harmonised with European regulations, with technical
rules and rules which ensure safety and protect the health of consumers in the common
practice.
9. Act on Fertilisers and Soil Improvers (OG 163/03 of 16 October 2003)
This Act determines the quality, quality control, labelling, transport and transport supervision of
fertilisers (mineral and organic) and soil improvers, as well as the production and control of
organic fertilisers and soil improvers.
Pursuant to this Act, fertilisers are not deemed to be substances for the protection of plants
from harmful organisms and diseases and substances influencing the life cycle of plants
without affecting their nutrition.
10. Plant Protection Act (OG 10/94 of 11 February 1994, 19/94 of 11 march 1994 and
117/03 of 23 July 2003)
This Act determines the protection of plants and plant products from harmful organisms, the
sanitary control of plants transported, the transport of substances for the protection of plants
and devices for their use and the prevention of negative consequences that the use of
substances for the plant protection might have on the health of people, animals, plants and the
environment, as well as other important issues regarding the enforcement of a single plant
protection system in the Republic of Croatia.
11. Act on Plant Health (OG 75/05 of 20 June 2005)
The Act describes and prescribes protection of plant health, including biological plant
protection, prevention of dissemination of plant diseases, collecting, monitoring and exchange
of data, financing and implementation of plant health measures and inspection control.
12. Sea Fishery Act (OG 48/05 of 13 April 2005)
The Act describes and prescribes the most important aspects of sea fishery, sea fishery
management and control.
Fish and other marine organisms are a renewable natural resource. They are subject to a
special state concern pursuant to the provisions of this Act.
With the exception of special protected natural areas, fish and other marine organisms may be
harvested, collected or bred in accordance with the conditions of this Act and regulations
adopted on the basis of this Act.
13. Fresh-water Fishery Act (OG 106/01 of 30 November 2001, 174/04 of 10 December
2004, 10/05 of 19 January 2005 and 49/05 of 15 April 2005)
According to this Act, fresh-water fishery implies the management of fresh-water fish and
includes harvesting, ranching, aquaculture, protection of fish and fresh water.
The fish is bred and/or caught in accordance with the conditions of this Act and regulations
adopted on the basis of this Act.
14. Maritime Code (OG 181/04 of 21 December 2004)
The provisions of this Code define the maritime and the submarine territory of the Republic of
Croatia, as well as the legal relations within them, navigation safety in the inland waterways
and the territorial sea of the Republic of Croatia, protection and safeguarding of natural marine
resources and the marine environment, fundamental material and legal relations concerning
vessels, contracting and other compulsory relations concerning vessels, registering of vessels,
limitations of the ship-owners’ responsibility, enforcement and insurance of vessels.
The Republic of Croatia encourages the regional cooperation, especially with neighbouring
countries, with the aim of adopting common plans for urgent actions in case of accidents which
might pollute the marine environment; it protects sensitive eco-systems, habitats of species
and other marine life forms, which are rare, endangered or in extinction, with special measures.
15. Maritime Domain and Seaports Act (OG 158/03 of 7 October 2003)
This Act defines the legal status of the maritime domain, its limitations, management and
protection, use and diffusion of seaports, sea areas, establishment of port authorities, port
activities and their implementation, building of ports and use of port super- and substructures,
as well as other important issues regarding seaports.
The general use of the maritime domain implies the right to its use with respect to the nature
and the purpose of use.
The special use of the maritime domain does not comprise only the general and commercial
use of the maritime domain.
The commercial use of the maritime domain implies the use of the maritime domain with the
aim of performing economic activities with or without using the existing facilities or other objects
present on the maritime domain, and with or without building new facilities or other objects on
the given maritime domain.
The local authorities are in charge of managing and maintaining the publicly used part of the
maritime domain, which is located inside its territory.
version of 14. 12. 2007; 315
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
16. Strategy and Action Plan of Biological and Landscape Diversity of the Republic of
Croatia (OG 81/99 of 3 August 1999)
In distinction from most European countries, Croatia’s eco-systems and habitats are very
diversified, which is also reflected in the richness and diversity of plants, fungi and animals.
Such diversity is conditioned by Croatia’s position on the crossroads of several bio-
geographical regions, by an indented relief, by geologic, pedological, hydrologic and climate
conditions and partially by human activities. Those features, combined with various local
traditions of physical planning, which have developed on the basis of different economic and
historical conditions, have contributed to the extraordinary richness of landscape diversity.
In comparison with eco-systems of most other Central and Western European countries, the
nature in Croatia is very well preserved. Next to extremely small natural habitats and
environments (water springs, cliffs, quagmires, forests, mountain meadows), there are many
partially natural habitats (certain forests, extensive pastures) influenced by the man, although
they have maintained mainly autochthon species, typical for such habitats. Anthropogenic
habitats, which have developed under human influence and which are very different from
natural habitats due to their structure and the presence of species, are not dominant, as in a
large part of Europe.
17. Livestock Act (OG 70/97 of 7 July 1997, 36/98 of 17 March 1998, 151/03 of 24
September 2003 and 132/06 of 6 December 2006)
This Act determines the rearing and the production of breeding animals, insemination of farm
animals, trade in breeding animals, zoo-hygienic conditions of keeping farm animals, protection
of the environment in rearing and exploiting farm animals, quality of feed and animal-based
products, structure and implementation of rearing of breeding animals and other issues
concerning the efficiency and the promotion of livestock farming.
The animal rearing has the following goals:
the increase of efficiency of the production of farm animals and the
reservation or the improvement of their vitality;
the increase of the economy of the livestock farming production;
the increase of the quality of livestock farming products;
the preservation of the genetic diversity of farm animals.
18. Forest Act (OG 52/90 of 12 December 1990, 9/91 of 28 February 1991, 76/93 of 16
August 1993, 160/04 of 18 November 2004 and 140/05 of 28 November 2005)
This Act defines the most important aspects of forest and forest areas management and
control. Numerous benefits offered by forests are particularly obvious since forests preserve
the soil, roads and other facilities from erosion, torrents and floods; influence the water regime
and the hydro-energetic system, the fertility of soil and the agricultural production, as well as
the climate; protect and improve the human environment; influence the production of oxygen
and the purification of the atmosphere; contribute to the beauty of landscapes and create
favourable conditions for medical treatments, convalescence, rest and recreation; contribute to
the development of tourism, hunting and general defence.
19. Strategy for the Development of the Industrial Processing of Wood and Paper (OG
114/04)
20. Act on the Classification of Wood in the Rough (OG 180/04)
21. Act on Organic Production of Agricultural Products and Foodstuffs (OG 12/01 of 14
February 2001 and 14/01 of 21 February 2001)
This Act determines the organic production, processing and marketing of agricultural products
and foodstuffs as important elements in the human health and life, consumer protection,
protection of the nature and the environment. The Ordinances (OG 91/01, 13/02, 66/02, 67/02,
81/02 and 85/02) also apply to control terminals and laboratories authorised for the inspection
of crops and the production, and define the transition period for switching from the conventional
to the organic production.
version of 14. 12. 2007; 316
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
This Act defines: measures for a safe and reliable energy supply and its efficient production
and use, acts on the basis of which the energy policy and energy development planning are
determined and implemented, conducting of energy-related activities on the market or as part
of public services, and basic issues regarding energy-related activities.
The goals of the energy development strategy are: to ensure a safe and reliable energy supply
and its efficient production and use, especially the use of various and renewable energetic
resources and the environmental protection in all areas of energy-related activities; to
encourage competition on the energy market on the basis of the principle of impartiality and
transparency; to protect the energy consumers and to connect the Croatian energy system or
its parts to the European energy system or the energy systems of other countries, starting from
the economic development and the energy needs; to develop national energy-related
programmes, the necessary investments, investment benefits regarding renewable energy
sources and energetic efficiency, as well as environmental protection measures.
38. Act on Oil and Oil Products Market (OG 68/01 of 27 July 2001 and 57/06 of 24 May
2006)
Energy-related activities: manufacturing of oil products, oil transport by pipelines or other
means of transport, transport of oil products by pipelines or other means of transport,
wholesale of oil products, retail of oil products, storage of oil and oil products are all market
activities, regulated by this Act.
39. Act on Gas Market (OG 68/01 of 27 July 2001 and 87/05 of 18 July 2005)
Concepts of this Act have the meaning as in the Energy Act.
40. Physical Planning Act (OG 30/94 of 15 April 1994, 68/98 of 12 May 1998, 35/99 of 12
April 1999, 61/00 of 23 June 2000, 32/02 of 28 March 2002 and 100/04 of 20 July 2004)
This Act determines the physical planning system, conditions and manners of the creation,
adoption and implementation of documents regarding physical planning, as well as the
competences of the state administration and the local self-government institutions and
administration concerning the enforcement of measures and activities, which ensure physical
planning in the Republic of Croatia.
physical person must fulfil in order to conduct the activities prescribed by the Act. The Act also
prescribes rules that the craftsman must comply with, specific rules arising from the Act itself
and the obligations of persons who conduct the activities prescribed by the Act. It also
prescribes the conditions for qualification and training of persons who wish to conduct a craft.
43. Cooperatives Act (OG 36/95 of 1 June 1995, 67/01 of 24 July 2001 and 12/02 of 6
February 2002)
The Cooperatives Act defines the concept of the “cooperative member”, obligations stemming
out of the participation in a cooperative, specific rules and obligations, such the headquarters,
financing, manner of foundation and end of business, the organs of the cooperative, property
and its business conducting.
44. Associations Act (OG 88/01 of 11 October 2001)
This Act determines the foundation, registration, legal position and end of existence of
associations. It prescribes conditions for association membership, activities and management.
45. Land Register Act (OG 91/96 of 28 October 1996, 114/01 of 20 December 2001 and
100/04 of 20 June 2004)
This Act determines the main aspects related to land registers (cadastre), land entry-books,
keeping of the documentation regarding owners’ rights and other legal principles defined by the
Act.
46. Act on Property and Other Real Rights (OG 91/96 of 28 October 1996, 73/00 of 21
July 2000 and 114/01 of 20 December 2001)
This Act determines the basic principles of personal property of objects; the provisions of this
Act are applied also on the property of objects subject to a special legal system, where not in
contradiction with the given system.
47. Act on Financing of Local Self-government Units (OG 117/93 of 31 December 1993,
33/00 of 25 March 2000, 73/00 of 30 June 2000, 59/01 of 30 June 2001, 107/01 of 5
December 2001, 117/01 of 24 December 2001, 150/02 of 17 December 2002 consolidated
text and 147/03 of 18 September 2003.)
This Act defines the sources of financing of activities belonging to the competences of the self-
government of counties, municipalities and towns, within limits prescribed by the Act which
deals with single issues, where not otherwise prescribed by the provisions of this Act.
48. Act on Promotion of Small Business (OG 29/02 of 22 March 2002)
This Act defines basis for implementation of simulative measures aimed at reconstruction and
market adjustments of small business.
The Act is harmonized with European legislation with the exception of amount of recorded total
annual turnover for small business. That amount is smaller in Croatian legislation than in
European legislation.
Small business includes entities, that:
Employ on the average less than 250 employees annually
Record total annual turnover of up to 8.196.721 EUR (60.000.000 HRK), or whose balance
sheet total, if they are obliged to pay profit taxes, fixed assets, if they are obliged to pay income
taxes, amount up to 4.098.360 EUR (30.000.000 HRK).
Small business entities are natural and legal persons that perform their authorized activities
independently and permanently with the objective of generating profits, i.e. creating income on
the market.
According to the Act on the promotion of small business, small business entities are divided to
micro, small and medium entities according to their size.
Micro entities are natural and legal persons that employ on the average less than 10
employees annually.
Small entities are natural and legal persons, that:
version of 14. 12. 2007; 322
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
EU Turnover/
<2.000.000€/ <10.000.000€/ <50.000.000€/
balance
2.000.000€ 10.000.000 43.000.000€
sheet
Source: Act on the promotion of small business (Official Gazette 29/02); 2003/361/EC
49. Act on Foundations and Trust-funds (OG 36/95 of 1 June 1995 and 64/01 of 16 July
2001)
The Act on Foundations and Trust-funds stipulates the manner of the establishment and
functioning of a specific type of civil society organization – foundations, which are properties
intended to independently, or through their generated income, permanently serve the
realization of some generally beneficial or charity cause.
It is necessary to amend the Act on Foundations and Trust-funds in order to simplify the
procedure for the establishment of foundations and simultaneously encourage the activities of
a larger number of home foundations in the Republic of Croatia. In relation to that, it is also
necessary to amend tax Acts in order to encourage philanthropy and provide for certain
exemptions due to investments for public benefit.
50. Act on Institutions (OG 76/93 of 16 August 1993)
The Act on Institutions regulates the establishment and activities of institutions as organizations
for permanent performance of activities related to education, science, culture, information,
sport, physical education, technical culture, child care, health care, social welfare, care for
disabled persons and other activities, if they are not performed for the purpose of generating
profit. An institution can be established by citizens as natural persons, thus it can belong to civil
society organizations, while public institutions are mostly established by the state or regional
and local self-government units.
51. Act on Humanitarian Aid (OG 96/03 of 10 June 2003 and 83/92 of 2 December 1992)
The Act on Humanitarian Aid is applied to associations, religious communities and other
domestic and foreign non-profit legal persons, one of the statutory objectives of which is the
provision of humanitarian aid, the so-called “humanitarian organizations”.
52. Act on Organizing Games of Fortune and Price Winning Games (OG 83/02 of 16 July
2002)
The Act contains provisions stipulating distribution of revenues from the games of fortune and
price winning games, the beneficiaries of which are civil society organizations through public
tender procedures. The areas of activities of civil society organizations recognized by the Act
are as follows: development of sports, fight against drugs and all other forms of addiction,
social and humanitarian activities, problems and satisfying the needs of disabled persons,
technical culture, culture, extra-institutional learning, education of children and youth and civil
society development. The Decree on Criteria for Establishing Beneficiaries and the Manner of
Distribution of a Part of Income from Games of Fortune elaborates more precisely the manner
version of 14. 12. 2007; 323
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
of distribution of a part of income from games of fortune. The Act on Organizing Games of
Fortune and Award Winning Games stipulates the obligation of financing eight different activity
areas of civil society organizations, from development of sports to civil society development, in
the amount of 50% of the total income from games of fortune.
53. Customs Act (OG 78/99 of 23 July 1999)
The Customs Act stipulates that goods that satisfy basic human needs, such as food,
medicine, clothes, bed linen, hygienic items, imported by registered humanitarian organizations
for the purpose of distributing them for free to endangered persons and victims of natural and
other disasters, shall be exempt from customs fees. Likewise, customs fees shall not be paid
by humanitarian organizations and associations of blind and deaf, or hearing–impaired
persons, as well as persons who suffer from muscular and neuromuscular disorders, for
specific equipment, devices, instruments and spare parts and consumable material for those
persons that are not produced domestically along with goods donated to institutions involved in
culture or other non-profit legal persons from cultural life, independent artists or artists for the
performance of their activities, based on the opinion of the Ministry of Culture.
54. Catering Activity Act (OG 49/03 of 27 March 2003 and 138/06 of 20 December 2006)
This Act defines terms and manner in which legal and natural persons may perform catering
(gastronomy) service.
Gastronomy service means preparing food and providing food service, preparing and serving
drinks and beverages, as well as accommodation services, as well as preparing food for
consummation on another place (in means of transport, at events, etc.) and supplying the food
(catering).
Gastronomy service may be performed by companies, cooperatives, individual traders and
artisans, public institutions managing national parks and nature parks, gastronomy educational
institutions, pupil and student dormitories, and certain gastronomy service may be provided by
citizens.
55. Act on Providing Services in Tourism (OG 68/07 of 2 July 2007)
This Act defines manner and conditions of performing tourist service. Tourist service means
travel agency service, tourist guide, friend, leaders, representatives, providing services in
nautical, farm, health, congress, sport, hunting and other forms of tourism, providing of other
tourist services, etc.
Tourist trade may be performed by companies, individual traders and artisans, fulfilling
conditions prescribed for its performance, if by this Act and Nature Protection Act (OG No.
30/94 and 72/94) has not been said differently. Under conditions prescribed by this Act and
regulations adopted on the basis of this Act, certain tourist services may be provided by
citizens.
persons with residence/habitual residence or seat in the given areas. The purpose of this Act is
to establish the areas of special state concern in order to:
eliminate the consequences of the war,
encourage a more rapid return of the displaced population,
stimulate demographic and economic progress and
obtain a more even development of all areas in the Republic of Croatia.
The areas of special state concern are divided into three groups by a numeration system of
single local units or their parts.
The first group of the areas of special state concern includes towns and municipalities which
were occupied during the war in the 1990’s and are near the state border; the centre of the
town/municipality is not located more than 15 km as the crow flies from the state border and
the given town/municipality does not have more than 5.000 inhabitants according to the 1991
population census. This group also includes all other areas, towns, municipalities and villages
in the Podunavlje region (Danube region), that were occupied during the Homeland War in the
1990’s.
The second group comprises towns, municipalities and villages which do not qualify for the first
group, but were occupied during the Homeland War in the 1990’s.
The third group of areas of special state concern includes municipalities deemed to be in the
underdeveloped parts of the Republic of Croatia, according to the evaluation procedure based
on four development criteria:
economic development criterion
structural difficulties criterion
demographic criterion
special criterion.
For that reason this Act belongs to the category of laws the starting point of which is the
territorial approach to regional development.
Mechanisms applied for the fulfilment of the basic purposes of this Act are the following:
housing for the population in areas of special state concern by determining the criteria for the
assignation of houses, housing units, construction sites and material; tax relieves for transport
and purchase of real estate in areas of special state concern, tax relieves on heritage and
donations, fee for the exploitation of mineral raw material. In areas of special state concern the
administrative, notary and other fees are not charged for all procedures conducted in
accordance with the provisions of this Act.
The implementation of this Act befalls to several ministries, while the Ministry of the Sea,
Tourism, Transport and Development monitors the implementation thereof.
57. Islands Act (OG 34/99 of 9 April 1999, 149/99 of 31 December 1999, 32/02 of 28 March
2002, 33/06 of 24 March 2006)
The Islands Act belongs to the group of laws combining different approaches to regional
development. The most important is the territorial approach to regional development, which is
determined by the specific position and significance of islands for the overall development of
the Republic of Croatia, since the islands are under special state concern.
Through a numeration system, the Act divides the islands into two main groups by a
combination of two criteria: development/underdevelopment criterion and population density
criterion of single islands or archipelagos. The Act prescribes several measures intended for
the fulfilment of the primary purpose of this Act.
The measures for stimulating the economic development include those for the stimulation of
single activities for sustainable island development, production of original island products by
introducing the Designation of Origin (Croatian island products), granting of loans under
favourable conditions for single stimulated activities, granting of incentives for employers with
version of 14. 12. 2007; 325
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
workers having permanent residence on islands, renting of state buildings under favourable
conditions, privileges regarding water supply, establishment of a common body for the common
conducting of communal activities by several units.
58. Reconstruction Act (OG 24/96 of 26 March 1996, 54/96 of 8 July 1996, 87/96 of 16
December 1996, 57/00 of 9 July 2000)
This Act defines the reconstruction of property destroyed or damaged during the war and the
elimination of consequences caused during the Homeland war from the beginning of the
Serbian aggression to the conclusion of a peaceful re-integration of hit areas.
The right to reconstruction in accordance with this Act is granted to owners or co-owners of
housing premises, protected lessees of premises in the said buildings, as well as owners of
other destroyed or damaged material goods, who are citizens of the Republic of Croatia or who
had residence in the Republic of Croatia in 1991.
59. Act on Reconstruction and Development of the Town of Vukovar (OG 44/01 of 16
May 2001, 90/05 of 25 July 2005)
This Act determines the stimulation measures for reconstruction and development of the town
of Vukovar and aims at eliminating the consequences of the war from the 1990’s. The town is
located in an area of special state concern due to the fact that all facilities of this town were
entirely destroyed during the war.
Stimulation measures for the accomplishment of the basic purpose of this Act are mainly
directed towards: buildings destroyed or damaged during the war, de-mining, return of refugees
and displaced persons, employment and the creation of new jobs, computerisation of economic
and social subjects and the state administration and local self-government bureaus, technical
and technologic modernisation, education and training, development of entrepreneurship and
environmental protection.
Every year, not later than 60 days after the entry into force of the state budget, the Government
of the Republic of Croatia adopts a Plan and programme for the reconstruction and
development of the town of Vukovar, containing specific projects and defining obligations and
manner of their financing, as well as time-limits for their implementation.
The reconstruction and development of the town of Vukovar is stimulated also through other
special measures.
60. Act on Hilly and Mountainous Areas (OG 12/02 of 6 February 2002, 32/02 of 28 March
2002, 117/03 of 23 July 2003, 42/05 of 1 April 2005, 90/05 of 25 July 2005)
This Act defines hilly and mountainous areas as areas of special state concern. Its goal is the
creation of prerequisites for the development of the said areas in order to encourage their
demographic recovery and population, as well as laying the basis for the best possible
exploitation of natural and economic resources for the purpose of economic growth. The
development of these areas is encouraged through specific measures prescribed by law, which
mainly comprise the right to collect forest fruits without payment of fees, priority for the
realisation of the right to lease agricultural and forest land, priority to lease and obtain the
fishing licence, fee for the exploitation of mineral raw material, tax relieves concerning the profit
tax and the income tax, temporary granting of financial means from the profit tax and the
income tax to local units in hilly and mountainous areas, priority right to obtain wood from the
wood-based biomass for physical and legal persons conducting the activities of wood treatment
and processing in the given area.
Act on the Fund for Regional Development of the Republic of Croatia (OG 107/01 of 5
December 2001)
The provisions of this Act refer to the establishment of the Fund for Regional Development as a
special body in charge of the implementation of the National programme. The activities of the
Fund consist in encouraging an even regional development of the Republic of Croatia in
accordance with the Regional Development Programme of the Republic of Croatia. The Fund’s
activities are above all directed towards the war-hit areas, scarcely populated areas, areas of
special state concern, development of islands, hilly and mountainous areas, border and near-
border areas, areas with structural problems, areas with a gross domestic product lower than
version of 14. 12. 2007; 326
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
65% of the average national GDP and other areas comprised by the Regional Development
Programme of the Republic of Croatia.
61. Value Added Tax Act (OG 47/95, 106/96, 164/98, 105/99, 54/00, 73/00, 48/04, 82/04,
90/05)
Value added tax is paid:
on the delivery of all kinds of goods (products, goods, newly-built buildings, equipment and so
on) and all services rendered inland for compensation,
on own consumption,
on the delivery of goods and services rendered without compensation and with a personal
discount,
on the import of goods inland,
on services that a foreign entrepreneur performs for a domestic entrepreneur inland.
62. Profit Tax Act (OG 177/04, 90/05, 57/06)
A taxpayer shall be a company or another legal or natural person resident in the Republic of
Croatia, who is permanently and independently engaged in an economic activity for the
purpose of deriving a profit, an income or revenue or other assessable economic benefits.
A taxpayer shall also be a resident permanent establishment of a non-resident entrepreneur.
A taxpayer shall also be a natural person who derives income pursuant to the income tax
regulations, if he/she declares that he/she intends to pay profit tax instead of income tax.
A taxpayer shall also be an entrepreneur – a natural person who derives income from small
business or the activities equalised therewith, if:
his/her total revenue in the preceding tax period exceeded of 270.000 EUR (HRK 2.000.000),
or
his/her total income in the preceding tax period exceeded of 54.000 EUR (HRK 400.000) or
the value of his/her fixed assets exceeds 270.000 EUR (HRK 2.000.000) or
he/she employed more than 15 employees on average during the preceding tax period.
The state administration bodies, bodies of regional and local self-government, and the Croatian
National Bank shall not be liable to pay profit tax, unless otherwise provided in this Act.
63. Income Tax Act (OG 177/04)
A taxpayer shall be a natural person who acquires an income. If several natural persons jointly
acquire an income, each natural person separately shall be a taxpayer, in respect of his/her
share in the jointly acquired income. A taxpayer shall also be an heir in respect of all tax
liabilities arising from an income acquired by the testator until his/her death. An heir shall also
be a taxpayer in respect of the income coming from inherited sources of income.
12.2. A NNEX
Table 12-2: Selected industrial products processing (2000 - 2004)
Product Measurement unit 2000 2001 2002 2003 2004 Index 04/03
Vegetables preserved in
t 8.244 10.367 17.986 10.967 11.632 106
vinegar
Cookies and similar products t 19.746 21.822 23.118 25.422 26.021 102
Chocolate and cocoa products t 11.445 12.230 14.165 14.019 15.630 111
Mineral and sparkling water 000 l 230.735 243.512 252.178 260.873 224.484 86
12.3. A NNEX
Table 12-3: Cereals production in the period 2000 - 2004
Crop 2000 2001 2002 2003 2004 2005
Wheat
production (000 t) 1.032,09 965,15 988,18 609,26 920,31 601,75
Barley
production (000 t) 151,44 161,49 170,95 134,24 181,87 162,53
Total
production production (000 t) 2.835,10 3.475,10 3.801,30 2.417,10 3.633,90 n.a
12.4. A NNEX
Table 12-4: Food and beverages consumption per inhabitant (2000 - 2005)
Consumed food and beverages quantities
Group of products Measurement unit
2000 2001 2002 2003 2004
Bread and other bakery products kg 69,01 68,10 65,50 85,48 82,67
Consumption eggs and powder eggs kg 9,32 10,81 10,72 8,12 8,15
Fruits (fresh, cold and frozen) kg 51,2 53,96 55,36 47,17 50,77
Canned and processed fruits, children food, diet products kg 0,52 0,39 0,50 0,60 0,47
Vegetables (fresh, cold and frozen) kg 56,07 54,59 53,32 52,19 56,20
Canned and processed vegetables, children food and diet food kg 7,55 6,72 6,90 6,65 7,63
Potato, consumption and sweet products on potato basis kg 36,16 47,70 44,79 42,92 46,00
Sugar, jam, chocolate and confectionaries kg 22,15 20,73 18,23 18,36 17,91
Soft drinks
Soda, fruit juices, syrups and concentrates for preparation of drinks l 26,17 31,55 32,05 32,90 32,29
12.5. A NNEX
Table 12-5: Direct payments per unit in HRK
BASIC
LESS
PAYMENT
PRODUCTION SUBSIDY SCHEME UNIT FAVOURE
PER UNIT
D AREAS
(KN)
Forage ha 1.250,00
Tobacco kg 5,00
Vegetables ha 1.250,00
Corn ha 6.500,00
Potatoes ha 13.000,00
Bulls from the performance test (one time basis) head 3.900,00
Breedable breeding sheep, rams, goats and male goats head 300,00
Rams and male goats from the performance test (one time
head 800,00
basis)
Boars from the performance test (one time basis) head 1.000,00
Honey kg 2,20
Bull semen:
Fishery
12.6. A NNEX
Table 12-6: Minimum supported quantities
Production subsidy scheme Unit Min. supported quantity
Soy ha 3,00
Forage ha 3,00
Vegetables ha 0,50
Bee-hives hive 30
Honey kg 450
Organic production
Fishery
Cattle head 1
Horses head 1
Pigs head 1
Sheep head 1
Goat head 1
Donkeys head 1
12.7. A NNEX
Table 12-7: Direct payments for the period 2001 - 2005 (HRK)
Plant
971.094.375 986.248.283 1.075.446.857 911.498.475 1.006.445.738
production
Bread
cereals
(wheat, 309.487.894 251.814.731 229.868.281 180.714.608 175.493.200
rye,
triticale)
Beer
13.514.565 14.355.139 16.384.733 10.393.884 6.656.499
barley
Other
cereals
intended
20.725.088 29.047.626 47.044.279 40.693.569 29.538.566
as feed
(oat,
barley)
Oil plants
(sunflower, 85.619.832 94.150.034 103.603.391 93.039.678 157.672.586
oil rape)
Other
industrial 20.982
plants
42
The 2005 column includes the obligations arisen on the basis of the production year level (the largest
part was paid in 2006)
version of 14. 12. 2007; 340
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
industrial
processing
and other)
Medicinal
3.069.047 3.328.513 4.011.787
plants
Agricultural
32.216.054 34.115.803 44.273.983 30.596.257 63.654.721
seeds I
Agricultural
1.733.216 3.179.560 3.729.204 2.694.981
seeds II
Nursery-
7.316
annually
Nursery -
new 397.495
plantations
Planting
1.451.941 2.541.761 2.979.458 5.285.174 6.253.823
material
Vineyards
10.267.382 10.315.753 13.652.275 29.621.731 25.245.820
- annually
Vineyards
- new 11.601.454 10.304.512 11.927.212 19.280.194 33.319.610
plantations
Orchards I,
II group
5.082.135 12.948.834 11.092.668
and hop -
annually
Orchards I,
II group
and hop - 7.993.710 8.594.851 11.971.787 8.252.977 21.648.057
new
plantations
Strawberry
89.341
- annually
43
Includes the processing of olives, extra virgin oil and new plantations
version of 14. 12. 2007; 341
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
/oil
Lavender -
65.800 53.235 38.270
cultivation
Livestock
544.851.623 626.025.350 905.643.830 785.440.167 890.112.232
farming
Meadows
and 2.032.503 1.762.521 1.363.315
pastures
Fattening
beef and
18.294.407 17.675.500 10.981.641 41.406.883 18.085.812
calves -
domestic
Fattening
beef and
32.625.174
calves -
imported
Fattening
pigs - 54.494.978 61.714.187 75.271.550 55.617.240 32.214.706
domestic
Fattening
pigs - 7.348.447
imported
Fattening
1.174.872
rabbits
Cows in
the cow- 6.780.820 10.315.300 4.445.400 5.888.764 4.942.742
calf system
Female
32.059.920 34.824.200 54.076.500 40.712.867 41.240.834
calves
44
Includes milk, sheep and goat milk
Breeding
32.829.615 41.403.700 98.485.280 65.438.699 61.108.745
sheep
Breeding
7.042.615 6.942.832
goat
Breeding
791.350 898.450 785.700 992.452 1.206.300
horses
Female
1.010.100 1.080.400 736.500 462.950 973.829
foals
Breeding
female 5.446.480 6.395.760 26.787.900 15.240.800 15.249.579
pigs
Boars
668.000 526.780 457.700
(test)
Bee-hives /
honey,
10.050.128 14.328.759 15.131.050 16.072.527 12.850.167
queen-
bees
Chicks of
1.341.230 1.438.302 1.500.000
game birds
Other
measures
14.646.932 15.663.761 17.936.931 6.318.315 9.343.999
in livestock
farming
12.8. A NNEX
Table 12-8: Implementing institutions for production subsidies scheme and their tasks
Collection and
Type of Procedure Inspection of
processing of Payments
benefit control agricultural farms
requests
12.9. A NNEX
Table 12-9: Average number of pigs per holding (2003)
Vukovar–Srijem 11 512 13
Bjelovar–-Bilogora 11 71 12
Brod–-Posavina 10 131 10
Sisak - Moslavina 8 65 8
Varaždin 6 1.086 7
Međimurje 8 349 9
Požega - Slavonia 10 49 10
Krapina - Zagorje 3 20 3
Karlovac 4 5 4
Split - Dalmatia 3 35 3
City of Zagreb 6 3 6
Istria 3 9 3
Šibenik - Knin 3 46 3
Zadar 3 195 3
Dubrovnik - Neretva 3 0 3
12.10. A NNEX
Assessment of economic viability of beneficiaries
The beneficiary shall demonstrate in the business plan the economic viability of the
holding/enterprise and of the project at the end of the investment. The criteria specified below
shall be used to calculate the economic viability:
Debt/Equity ratio= (short term obligations + long Current Liquidity Ratio = current assets / short
term obligations) / equity and inventory term obligations
If the beneficiary is the beginner, only economic viability of the project shall be demonstrated.
12.11. A NNEX
Table 12-12: National minimum standards
Name and number
List of legal persons with granted approval for performing professional environmental activities (OG 71/05)
Ordinance on the method and terms for calculation and payment of the special environmental charge for motor
vehicles (OG 20/04)
Ordinance on the method and terms for calculation and payment of charges for emission into the environment of
sulphur oxides, in the form of sulphur dioxide, and nitric oxides, in the form of nitric dioxide (OG 95/04)
Ordinance on the method and terms for calculation and payment of charges for burdening the environment with waste
(OG 95/04)
Ordinance on the form, content and method of keeping the register of parties subject to payment of the charge for
emissions into the environment of sulphur oxides, in the form of sulphur dioxide (OG 120/04)
Ordinance on the form, content and method of keeping the register of parties subject to payment of the charge for
emissions into the environment of nitric oxides, in the form of nitric dioxide (OG 120/04)
Ordinance on the form, content and method of keeping the register of parties subject to payment of the charge for
burdening the environment with waste (OG 120/04)
Ordinance about highest accept levels noise in environment where people live and stay (OG 145/04)
Ordinance of veterinary and health conditions to whom objects registered for treatment, processing and storing
products of animal origin on family holdings, must comply with (OG 149/03, 9/07
Ordinance on veterinary-sanitary conditions for establishments that produce, product and place fish and crabs on the
market (OG 148/99)
Ordinance on conditions for establishments for production of animal feed and storage facilities (OG 159/98)
Ordinance on requirements in slaughterhouses, establishments for treatment, processing and storing of animal
products (OG 52/93)
Ordinance on requirements for railway stations, river ports and airports intended for loading, transhipment and
unloading of consignments of animals (OG 52/93)
Ordinance on obligatory identification of domestic animals, their registration in the central register and record keeping
(OG 110/04)
Ordinance on monitoring measures for specific substances and their residues in live animals and animal products (OG
118/04)
Ordinance on keeping records on animals used for experimental purposes and types of experiments (OG 176/04)
Ordinance laying down veterinary sanitary condition for production, harvesting, purification and placing on the market
live bivalve molluscs (OG 117/04)
Ordinance on the way of loading transport und unloading of consignments of animals, products and waste of animal
origin and hygienic and technical conditions of vehicles and consignments in internal and international trade (OG 13/05
)
Ordinance on the way of handling animal carcasses and waste of animal origin and destruction thereof (OG 24/03)
Ordinance laying down veterinary sanitary checks and controls of animals before slaughtering and products of animal
version of 14. 12. 2007; 347
mod. July, 2008; mod. June 2009 EN
IPARD PROGRAMME – Agriculture and Rural Development Plan 2007 - 2013
Ordinance concerning the implementation of obligatory measures in approved establishments in order to reduce
microbiological and other contamination of meat, meat products and other products of animal origin intended for
human consumption (OG 74/97, 5/07 and14/07)
Ordinance on conditions for production, putting in circulation and use medicated feeding stuffs (OG 101/05)
Ordinance laying down the conditions and arrangements for approving establishments and intermediaries operating in
the animal feed sector (OG 96/05)
Ordinance of General Food Declarations and Food Labelling (OG 114/04, 128/04 and 34/05)
Ordinance on basic technical-technological requirements in production of wine and fruit wines including conditions for
selling wine and other products from grape and wine and fruit wines (OG 102/04, 91/05 and 71/06)
Ordinance on fruit, vegetable and mushroom quality (OG 53/91 and 114/04)
Ordinance on the quality of the fresh raw milk (OG 102/00 and 111/00)
Ordinance on conditions with which farms must comply and conditions for the protection of farm animals (OG136/05)
Ordinance of quality of beef carcasses and halves on the slaughter line (OG 20/04, 10/05 and 40/07)
Ordinance on conditions to be complied by establishments for slaughtering of animals, treatment, processing and
storing of products of animal origin (OG 20/92, 75/93 and 9/07)
Ordinance on measures for monitoring particular compounds and their residues in live animals and in products of
animal origin (OG 118/04)
Ordinance on detecting residues of particular compounds in living animals and in products of animal origin OG 106/99
Ordinance for animals shipments and shipments of products of animal origin which fall under veterinary and health
control and do not need resolution issued from Directorate of Veterinary (OG 130/04)
Ordinance on procedure with animal carcasses and waste of animal origin and their destruction (OG 24/03)
Ordinance on Catering Services on Agricultural Holding (OG 48/95, 47/97, 25/99, 29/00, 196/03)
Act on Special Conditions for Marketing Flour (OG 48/04, 130/04, 140/05, 143/05)
Act on Geographical Indications and Designations of Origin of Products and Services (OG 173/03, 186/03 and 76/07)
Forest Act (OG 52/90, 9/91, 76/93, 160/04, 140/05 and 82/06)
Act on Organic Production of Agricultural Products and Foodstuffs (OG 12/01, 14/01 and 79/07)
Act on Veterinary Medicinal Products and Veterinary Medical Devices (OG 79/98)
Act on Oil and Oil Products Market (OG 68/01 and 57/06)
Physical Planning Act (OG 30/94, 68/98, 35/99, 61/00, 32/02 100/04 and 76/07)
12.12. ANNEX
Table 12-13: Structure of family farms with vineyards by size and geographical distribution, 2003
Area (ha)
Total No. /
County
0 > 10 > County
0,1 >0,5 0,5 > 1 1>2 2> 3 3>5 5 > 10 ≥ 20
0,1 20
Zagreb County 116 2.080 1.844 2.969 2.171 2.913 2.901 965 155 16.114
Krapina - Zagorje 135 3.599 4.185 6.067 3.176 2.241 797 125 19 20.344
Sisak - Moslavina 43 684 422 585 425 552 547 200 52 3.510
Varaždin 338 4.589 3.856 4.809 2.508 2.334 1.287 215 37 19.973
Koprivnica - Križevci 119 1.860 1.155 1.484 1.103 2.164 2.921 1.133 189 12.128
Bjelovar - Bilogora 34 616 371 498 398 780 1.238 635 175 4.745
Primorje - Gorski Kotar 159 754 246 295 118 109 117 54 22 1.874
Virovitica - Podravina 62 1.046 588 709 423 615 769 379 142 4.733
Požega - Slavonia 24 266 218 284 191 261 265 117 25 1.651
Brod - Posavina 42 710 339 442 337 372 356 116 32 2.746
Osijek - Baranja 83 850 401 417 257 323 442 202 124 3.099
Šibenik - Knin 127 2.650 1.853 1.791 762 596 307 61 10 8.157
Split - Dalmatia 614 6.540 3.822 3.107 1.217 961 634 188 72 17.155
Istria 80 1.287 987 1.542 1.169 1.428 1.726 886 204 9.309
Dubrovnik - Neretva 61 1.287 883 1.094 686 613 455 224 90 5.393
City of Zagreb 108 1.905 852 764 379 362 210 52 6 4.638
Total: 2.424 35.083 25.339 30.647 17.405 18.741 16.717 6.091 1.523 153.970
12.13. ANNEX
Table 12-14: Structure of legal entities with vineyards by size and geographical distribution, 2003
Međimurje 1 1 1 4 1 1 9
Area (ha)
City of Zagreb 1 1
County
0 > 5 > 20 > 30 > 50 > Total No. /
Total 17 1
8>2 2
11> 3 3
15> 5 28 10
16 > 20 3 10 10 ≥
28100 146
1 10 30 50 100 County
Zagreb County 5 3 5 1 7 1 1 3 26
Krapina - Zagorje 1 1 1 3
Sisak - Moslavina 1 1 2
Varaždin 1 1 1 3
Koprivnica-Križevci 1 1
Bjelovar - Bilogora 1 1 1 3
Lika - Senj
Virovitica - Podravina 1 1 2 4
Požega - Slavonia 4 1 2 3 3 1 2 2 18
Brod - Posavina 1 1 2
Zadar 1 1 1 1 4
Osijek - Baranja 1 2 1 6 10
Šibenik - Knin 2 2 4
Vukovar - Srijem 1 1 2 1 1 5 11
Split - Dalmatia 3 1 3 1 2 10
Istria 2 1 3 4 4 3 2 19
Dubrovnik - Neretva 1 1 1 1 2 2 8
12.14. ANNEX
Table 12-15: List of traditional crafts
Name of traditional craft
Cooper
Copper – smith
Brushmaker
Chimney – sweeper
Umbrella – maker
Milliner
Hatmaker
Bookbinder
Blacksmith
Roofer (tiller)
Furrier
Potter
Miller
Sign – writer
Harness – maker
Glazier
Carpenter
Lathe operator
Watchmaker
Rope – maker
Wig – maker
12.15. ANNEX
Table 12-16: List of olive varieties
Name Desription
12.16. ANNEX
Table 12-17: Structure of cereal producers by farm size and geographical distribution 2003
0>2 ha 2>5 ha 5>10 ha 10>20 ha >20 ha TOTAL
Dubrovnik - Neretva 80 15 3 1 99
12.17. A NNEX
Table 12-18: Basic infrastructure endowment at county level (2001)
Waste Number
Total
Density of water from of inhabit.
water
Population/ road public per one
COUNTY supply per
km roads network in sewage telephone
capita
km/km
2 system connectio
3
(m /capita) 3 n
(m /inhab.)
Virovitica -
102,4 0,4 34,7 26,0 3,2
Podravina
12.18. A NNEX
Table 12-19: Housing quality at county level (2001) should be moved to the annex)
Household units Water Kitchen,
Sewage
suppl Central toilet
dispos
COUNTY Electricity y heatin and
% al
total no. syste g bathroo
total system
m m
Krapina -
42.402 2,98 99,47 90,05 83,34 38,04 76,04
Zagorje
Sisak -
60.541 4,26 98,44 87,29 89,71 25,71 80,40
Moslavina
Koprivnica -
38.215 2,69 99,19 87,50 83,68 27,28 71,08
Križevci
Bjelovar -
43.091 3,03 99,10 83,55 81,41 23,62 68,46
Bilogora
Primorje -
108.662 7,64 99,89 99,03 98,85 27,34 94,28
Gorski Kotar
Virovitica -
30.372 2,14 99,09 83,77 80,81 16,50 69,94
Podravina
Požega -
25.975 1,83 99,36 87,60 85,07 30,44 77,43
Slavonia
Brod -
52.178 3,67 98,98 85,52 85,11 29,52 77,75
Posavina
Osijek -
107.987 7,60 99,49 89,63 88,85 32,09 82,08
Baranja
Vukovar -
59.147 4,16 99,45 92,78 89,85 24,72 83,57
Srijem
Split -
138.491 9,74 99,83 96,07 95,76 13,26 91,51
Dalmatia
Dubrovnik -
37.346 2,63 99,78 97,99 97,88 11,86 93,67
Neretva
12.19. ANNEX
Table 12-20: List of cities, municipalities and settlements according to tourist class
City Municipality Settlement Class
Zagreb county
Dugo Selo D
Ivanić Grad D
Jastrebarsko D
Jastrebarsko C
Samobor D
Samobor A
Velika Gorica D
Velika Gorica B
Vrbovec D
Zaprešić D
Zaprešić C
Kloštar Ivanić D
Kloštar Ivanić C
Krašić D
Krašić C
Križ D
Križ C
Pisarovina D
Rugvica D
Sveta Nedjelja D
Krapina – Zagorje
Donja Stubica D
Donja Stubica B
Klanjec D
Klanjec B
Krapina D
Krapina B
Oroslavje D
Pregrada D
Zabok D
Zlatar D
Zlatar C
Desinić D
Gornja Stubica D
Gornja Stubica C
Hum na Sutli D
Krapinske Toplice D
Krapinske Toplice A
Kumrovec D
Kumrovec B
Lobor D
Mače D
Marija Bistrica D
Marija Bistrica A
Mihovljan D
Stubičke Toplice D
Stubičke Toplice A
Tuhelj D
Tuheljske Toplice A
Zagorska Sela D
Miljana B
Sisak - Moslavina
Glina D
Hrvatska Kostajnica D
Kutina D
Kutina C
Novska D
Novska C
Petrinja D
Petrinja C
Sisak D
Sisak B
Dvor D
Gvozd D
Hrvatska Dubica D
Jasenovac D
Jasenovac C
Lekenik D
Lipovljani D
Martinska Ves D
Popovača D
Sunja D
Topusko D
Topusko B
Karlovac
Duga Resa D
Karlovac D
Karlovac C
Ogulin D
Ozalj D
Slunj D
Barilovići D
Bosiljevo D
Cetingrad D
Draganić D
Generalski Stol D
Josipdol D
Krnjak D
Lasinja D
Netretić D
Plaški D
Rakovica C
Saborsko D
Vojnić D
Žakanje D
Varaždin
Ivanec D
Lepoglava D
Ludbreg D
Varaždin D
Varaždin B
Varaždinske Toplice D
Varaždinske toplice A
Bednja D
Trakošćan A
Gornji Kneginec D
Maruševec D
Vinica D
Koprivnica - Križevci
Đurđevac D
Đurđevac B
Koprivnica C
Križevci D
Križevci C
Drnje D
Ferdinandovac D
Ferdinandovac C
Gola D
Hlebine C
Kloštar Podravski D
Legrad C
Molve D
Rasinja D
Bjelovar - Bilogora
Bjelovar D
Bjelovar C
Čazma D
Daruvar D
Daruvar B
Garešnica D
Grubišno Polje D
Berek D
Kapela D
Sirač D
Veliki Grđevac D
Veliko Trojstvo D
Bakar D
Bakar C
Cres D
Beli B
Cres A
Martinšćica A
Miholašćica C
Stivan C
Valun A
Crikvenica D
Crikvenica A
Dramalj A
Jadranovo A
Selce A
Čabar D
Delnice D
Delnice C
Kastav D
Kraljevica D
Bakarac C
Kraljevica B
Krk D
Kornić C
Krk A
Mali Lošinj D
Ćunski B
Ilovik C
Mali Lošinj A
Nerezine A
Osor A
Punta Križa A
Susak C
Unije C
Veli Lošinj A
Novi Vinodolski D
Klenovica B
Novi Vinodolski A
Povile B
Opatija D
Ičići A
Ika B
Opatija A
Vela Učka A
Rab A
Rijeka B
Vrbovsko D
Baška D
Baška A
Jurandvor C
Brod Moravice D
Čavle D
Dobrinj D
Klimno B
Šilo B
Fužine D
Fužine C
Jelenje D
Kostrena D
Lokve D
Lokve C
Lovran D
Lovran A
Medveja A
Malinska-
Dubašnica D
Malinska A
Porat B
Matulji D
Matulji B
Mošćenička Draga D
Mošćenička Draga A
Mrkopalj D
Omišalj A
Punat B
Punat A
Ravna Gora D
Skrad D
Vinodolska općina D
Vrbnik D
Vrbnik B
Lika - Senj
Gospić D
Novalja D
Lun C
Metajna C
Novalja A
Stara Novalja C
Otočac D
Ličko Lešće C
Senj D
Jablanac C
Lukovo C
Senj B
Sveti Juraj C
Brinje D
Donji Lapac D
Karlobag D
Baške Oštarije C
Karlobag B
Perušić D
Plitvička Jezera D
Jezerce B
Korenica C
Plitvička Jezera A
Udbina D
Vrhovine D
Virovitica - Podravina
Orahovica D
Orahovica C
Slatina D
Virovitica D
Gradina D
Pitomača D
Suhopolje D
Špišić Bukovica D
Voćin D
Požega – Slavonia
Lipik D
Lipik B
Pakrac D
Pleternica D
Požega D
Požega C
Brestovac D
Novo Zvečevo B
Čaglin D
Jakšić D
Kutjevo D
Velika D
Velika C
Brod – Posavina
Nova Gradiška D
Nova Gradiška C
Slavonski Brod D
Slavonski Brod C
Cernik D
Cernik C
Oprisavci D
Stara Gradiška D
Stara Gradiška C
Zadar
Benkovac D
Benkovac C
Biograd na Moru D
Biograd na Moru A
Nin D
Grbe C
Nin A
Vrsi C
Zaton A
Obrovac C
Pag D
Kolan C
Pag A
Vlašići C
Zadar D
Ist C
Kožino C
Olib B
Petrčane A
Silba A
Veli Iž C
Zadar A
Bibinje D
Gračac D
Jasenice D
Jasenice C
Kali C
Kukljica A
Novigrad D
Novigrad C
Pakoštane D
Pakoštane A
Pašman D
Pašman B
Ždrelac C
Polača D
Posedarje D
Posedarje C
Povljana C
Preko C
Preko B
Privlaka C
Ražanac D
Sali D
Božava A
Sali B
Starigrad C
Seline B
Starigrad A
Tribanj B
Sukošan D
Sukošan A
Turanj B
Tkon B
Vir D
Vir C
Osijek - Baranja
Beli Manastir D
Belišće D
Donji Miholjac D
Đakovo B
Našice D
Našice C
Osijek D
Osijek B
Valpovo D
Bilje D
Bizovac D
Bizovac B
Draž D
Erdut D
Levanjska Varoš D
Breznica Đakovačka C
Šibenik - Knin
Drniš D
Knin D
Knin C
Skradin D
Skradin B
Šibenik D
Grebaštica C
Kaprije C
Krapanj C
Šibenik B
Zlarin B
Žirje C
Vodice D
Prvić Luka B
Srima B
Tribunj B
Vodice A
Pirovac B
Pirovac A
Primošten D
Primošten A
Rogoznica D
Rogoznica B
Tisno B
Betina A
Jezera A
Murter A
Tisno A
Vukovar - Srijem
Ilok D
Ilok B
Vinkovci B
Vukovar D
Županja C
Babina Greda D
Borovo D
Bošnjaci D
Gunja D
Nijemci D
Otok D
Vrbanja C
Split - Dalmatia
Hvar D
Hvar A
Sveta Nedjelja C
Imotski D
Kaštela D
Kaštel Lukšić C
Kaštel Stari C
Kaštel Štafilić B
Komiža D
Komiža B
Makarska D
Makarska A
Omiš D
Lokva Rogoznica B
Mimice B
Omiš B
Pisak C
Sinj D
Sinj C
Solin D
Split D
Split B
Stobreč C
Stari Grad D
Stari Grad A
Supetar D
Supetar A
Trilj D
Trilj C
Trogir D
Trogir B
Vis D
Vis B
Vrgorac D
Vrlika D
Baška Voda D
Baška Voda A
Bratuša B
Krvavica B
Promajna B
Bol D
Bol A
Brela A
Dugi Rat D
Jesenice C
Gradac B
Jelsa D
Jelsa A
Pitve B
Vrboska A
Klis D
Marina D
Marina B
Vinišće B
Milna D
Milna B
Nerežišća D
Okrug D
Okrug Donji C
Okrug Gornji B
Otok D
Podgora D
Drašnice B
Igrane A
Živogošće B
Podgora A
Podstrana B
Postira B
Proložac D
Pučišća D
Pučišća C
Seget D
Seget Donji B
Seget Vranjica B
Selca D
Povlja B
Selca C
Sumartin C
Sućuraj D
Sućuraj B
Sutivan B
Šolta D
Grohote B
Maslinica B
Stomorska B
Tučepi A
Istria
Buje B
Buzet D
Buzet C
Sveti Ivan C
Labin D
Rabac A
Novigrad A
Pazin D
Pazin C
Poreč A
Pula D
Pula A
Rovinj A
Umag A
Bale D
Bale C
Brtonigla B
Cerovlje D
Gradinje C
Grožnjan D
Grožnjan C
Kanfanar D
Kaštelir-Labinci D
Kršan D
Ližnjan D
Ližnjan C
Marčana D
Krnica B
Medulin A
Motovun D
Motovun C
Oprtalj D
Oprtalj C
Pićan D
Raša D
Sveta Marina C
Sveta Nedelja D
Svetvinčenat C
Višnjan D
Vižinada D
Vodnjan D
Fažana B
Vodnjan C
Vrsar D
Funtana A
Vrsar A
Žminj D
Dubrovnik - Neretva
Dubrovnik D
Dubrovnik A
Koločep B
Lopud A
Orašac B
Šipanska Luka B
Trsteno C
Zaton B
Korčula D
Korčula A
Metković D
Opuzen D
Ploče D
Baćina C
Ploče C
Blato Dubrovačko C
Primorje D
Slano A
Janjina D
Drače C
Janjina C
Sreser C
Konavle D
Cavtat A
Molunat C
Lastovo D
Lastovo C
Lumbarda B
Mljet D
Goveđari A
Pomena A
Saplunara B
Orebić D
Lovište B
Orebić A
Trstenik C
Viganj C
Slivno D
Blace C
Duboka C
Klek B
Komarna C
Smokvica C
Ston D
Brijesta C
Broce C
Luka C
Metohija C
Putniković C
Ston C
Žuljana C
Trpanj D
Trpanj A
Vela Luka A
Župa Dubrovačka D
Mlini A
Međimurje
Čakovec D
Čakovec C
Mursko Središće D
Prelog D
Kotoriba D
Nedelišće D
Štrigova D
City of Zagreb
Grad Zagreb C
Zagreb A
12.20. ANNEX
Table 12-21: List of institutions and operative programmes for training
No. INSTITUTION NAME OPERATIVE PROGRAMMES FOR TRAINING
14 Open University Poetika, Osijek Fruit grower – grape grower – wine producer
12.21. A NNEX
Table 12-22: Big wine producers, 2005
Number Name Released on market, hl Share
12.22. A NNEX
Table 12-23: Number of associations and foundations per counties
NUMBER OF NUMBER OF
COUNTIES
ASSOCIATIONS FOUNDATIONS
Karlovac 958 0
Međimurje 869 1
Varaždin 1.183 3
Zadar 894 1
Šibenik–Knin 787 1
Source: Central State Administrative Office for Public Administration, Register of Associations and Foundations,
December, 2006.
12.23. ANNEX
Table 12-24: Vegetable production for processing, 1990 - 2003
Product name, OG no. 18/97 1990 1996 1997 1998 1999 2000 2001 2002 2003
Tomatoes, prepared and preserved, except in vinegar, in one piece or parts. 0 0 93 147 215 213 249 230
Sauerkraut, not frozen 790 1.765 1.245 1.041 1.455 603 1.267 2.335 2.588
Peas, prepared, except in vinegar, not frozen 1.922 114 1.216 1.388 1.395 1.338 1.677 952 1.398
French beans, prepared, except in vinegar, not frozen 994 397 151 608 220 159 391 245 239
Olives, prepared, except in vinegar, not frozen 173 236 168 81 338 2.619 1.372 1.349 594
Ajvar, not frozen 223 862 1.298 1.204 981 1.839 1.775 2.280 1.820
Other vegetables, not frozen, d.n. 307 22 368 494 346 110 229 133 55
Pickled peppers, in vinegar or acetic acid 3.471 1.306 708 2.905 1.868 1.564 1.462 5.256 1.599
Sour beetroot, in vinegar or acetic acid 3.320 1.775 1.573 1.367 2.192 1.078 1.753 1.856 757
Pickled chilli peppers, in vinegar or acetic acid 3.078 1.255 664 862 738 926 681 705 691
Pickled mixed salads and other mixed vegetables, in vinegar 1764 1227 399 382 374 157 484 420 401
Other vegetables preserved in vinegar or acetic acid 583 61 390 693 585 892 740 1.428 985
TOTAL PROCESSED VEGETABLES 23.696 19.303 15.161 21.547 16.847 15.404 17.709 26.060 19.291
12.24. ANNEX
Table 12-25: Fresh fruit import from 2000 - 2003
2000 2001 2002 2003
dates, figs, pineapples 610 464.578 654 674.061 850 932.331 989 1.632.961
other citrus fruit 12.838 4.457.169 11.660 4.531.962 12.363 5.073.014 13.476 8.427.473
watermelons, melons 4.513 1.021.848 8.098 1.771.628 7.792 1.889.985 7.925 2.759.994
pears, quinces 2.673 1.109.779 5.160 2.523.978 5.439 2.859.559 10.237 3.155.114
cherries, sour cherries 209 99.329 908 422.280 542 274.688 378 296.133
strawberries, raspberries, cranberries… 736 415.026 857 628.355 699 528.606 309 451.815
other fresh fruits 250 975.946 261 135.042 339 192.977 363 276.481
12.25. ANNEX
Table 12-26: Fresh fruit export 2000 - 2003
2000 2001 2002 2003
Strawberries, raspberries,
3 12.255 0 296 0 0 0 102
cranberries…
12.26. ANNEX
Table 12-27: Export - import balance of fresh, half processed and dried vegetables (1999 – 2003)
1999 2000 2001 2002 2003
EXPORT tons USD tons USD tons USD tons USD tons USD
Half-processed and dried vegetables 111 250.826 247 458.329 311 404.429 258 450.759 339 719.974
Dried vegetables, in whole, cut and other 16 87.442 125 294.953 112 257.061 99 284.243 194 536.624
Dried leguminous vegetable in grains 22 48.854 30 28.123 120 35.872 79 32.917 32 23.749
Processed vegetable 4.272 5.341.236 3.805 4.710.588 4.037 4.908.582 5.249 6.027.306 3.437 6.036.676
Vegetable and fruit preserved 2.634 2.063.990 1.666 1.330.251 1.946 1.446.054 2.368 1.739.475 1.141 1.101.856
Tomato prepared without vinegar 179 448.479 183 351.697 235 381.517 183 422.707 153 484.265
Mushrooms and truffles prepared or preserved 2 7.712 13 23.218 12 30.698 13 100.415 15 189.352
Other frozen vegetable 17 19.269 41 25.117 3 2.747 476 222.799 142 139.975
Other not frozen vegetable 1.440 2.801.786 1.902 2.980.305 1.841 3.047.566 2.209 3.541.910 1.986 4.121.228
TOTAL 4.383 5.592.062 4.052 5.168.917 4.348 5.313.011 5.507 6.478.065 3.776 6.756.650
Half-processed and dried vegetables 10.262 14.129.274 12.796 11.853.047 15.195 12.806.973 15.563 14.470.693 17.347 17.595.153
Vegetables, frozen 3.979 2.726.810 5.218 2.985.297 5.490 3.304.503 6.480 4.192.379 7.499 5.913.014
Vegetables temporarily preserved 463 545.411 752 686.266 1.038 1.103.146 826 872.672 262 303.799
Dried vegetable, in whole, cut and the rest 3.887 9.324.852 2.698 5.753.601 2.799 5.126.999 3.563 6.422.182 3.612 7.398.627
Dried leguminous vegetable in grains 1.932 1.530.180 4.058 2.421.102 5.784 3.264.715 4.647 2.886.809 5.974 3.979.444
Tapioca, sweet potato and similar roots 1 2.021 70 6.781 84 7.610 47 96.651 0 269
Processed vegetable 15.879 15.905.554 18.933 16.020.879 24.002 19.436.230 30.685 25.446.849 34.883 34.195.998
Vegetable and fruit preserved 1.627 2.141.706 1.457 1.819.030 2.171 2.471.006 5.134 4.417.133 4.524 4.757.544
Tomato prepared without vinegar 4.995 3.691.522 6.142 3.645.129 6.663 3.539.288 9.165 4.935.719 9.526 6.826.892
Mushrooms and truffles prepared or preserved 951 1.415.174 1.256 1.672.712 1.309 1.594.716 1.361 1.662.936 1.558 2.111.769
Other frozen vegetable 4.562 3.082.560 5.182 2.761.675 7.059 3.464.729 6.820 3.853.857 9.459 6.016.371
Other not frozen vegetable 3.744 5.574.592 4.896 6.122.333 6.800 8.366.491 8.205 10.577.204 9.816 14.483.422
TOTAL 26.141 30.034.828 31.729 27.873.926 39.197 32.243.203 46.248 39.917.542 52.230 51.791.151
Source: CBS, 2006
12.27. ANNEX
Table 12-28: Production of fruit for processing
Production
Product name, OG No. 18/97
1990 1996 1997 1998 1999 2000 2001 2002 2003
Jams from other fruit 6.613 233 292 118 163 170 217 294 429
Marmalade from other fruits 627 344 340 297 488 768 799 852 774
Rose hip marmalade 1.060 655 483 558 536 590 731 601 730
Marmalades from one kind of fruit, besides the rose hip 1.585 652 932 907 992 1.191 1.339 1.451 1.171
Mixed marmalades, from other fruit 2.109 1.767 1.944 1.633 1.472 1.586 1.806 1.423 1.135
Fruit jellies, and purée and fruit pastes, walnuts and cetera, drupes 0 0 224 133 148 147 166 152 256
Walnuts and similar drupes, roasted, salted or prepared in any other way 682 484 742 708 954 4 4
Fruit, walnuts and similar drupes, temporarily preserved ,inappropriate for direct nutrition 76 81 102 118
Dry figs 4 4
Canned fruit from one or more kinds of fruit 6.398 490 219 147 56 163 297 847 591
Fruit pulp and paste, frozen 2.193 917 100 428 180
Fruit pulp and paste, preserved chemically 2.761 431 1.505 2.038 1.717 2.253 1.921 2.346 1.843
Other fruit prepared and preserved, d.n. 5 0 21 127 238 300 241 250
TOTAL PROCESSED FRUIT 27.817 8.575 7.163 7.006 6.621 7.890 8.611 9.111 7.856
Source: CBS, 2006
12.28. ANNEX
List of cities and municipalities covered by Mountain and Hill Area Act
Cities: Buzet, Čabar, Delnice, Imotski, Lepoglava, Ogulin, Orahovica, Senj, Sinj, Trilj, Vrbovsko and
Vrgorac
Municipalities: Bistra, Budinšćina, Cerovlje, Čavle, Dicmo, Đurmanec, Fužine, Gračišće, Jelenje,
Jesenje, Kalnik, Kaptol, Karlobag, Klana, Klis, Lobor, Lokve, Lovreć, Lupoglav, Ljubešćica, Matulji,
Motovun, Mrkopalj, Muć, Novi Golubovec, Podbablje, Primorski Dolac, Radoboj, Ravna Gora, Skrad,
Stubičke Toplice, Šestanovac and Vinodol
12.29. ANNEX
Table 12-29: List of cities and municipalities
Sisak –
Zagreb Krapina – Karlovac 141.78
309.696 142.432 Moslavina 185.387
County Zagorje County County 7
County
Hrvatska
Bistra 6.098 Klanjec 3.234 2.746 Slunj 6.096
Kostajnica
Generalski
Jakovlje 3.952 Bedekovčina 8.482 Jasenovac 2.391 3.199
Stol
Kravarsko 1.983 Gornja Stubica 5.726 Martinska Ves 4.026 Netretić 3.333
Marija Gorica 2.089 Jesenje 1.643 Velika Ludina 2.831 Ribnik 583
- - Petrovsko 3.022 - - - -
- - Radoboj 3.513 - - - -
Sveti Križ
- - 6.619 - - - -
Začretje
- - Tuhelj 2.181 - - - -
- - Zlatar-Bistrica 2.830 - - - -
Varaždinske
6.973 Drnje 2.156 Municipalities Čabar 4.387
Toplice
Breznički Hum 1.575 Hlebine 1.470 Ivanska 3.510 Mali Lošinj 8.388
Novi
Cestica 5.678 Kalinovac 1.725 Kapela 3.516 5.282
Vinodolski
Donji
4.327 Kloštar Podravski 3.603 Nova Rača 4.077 Vrbovsko 6.047
Martijanec
Gornji
5.259 Koprivnički Bregi 2.549 Rovišće 5.262 Municipalities
Kneginec
Novigrad
Mali Bukovec 2.507 3.161 Štefanje 2.347 Dobrinj 1.970
Podravski
Maruševec 6.757 Novo Virje 1.412 Velika Pisanica 2.151 Fužine 1.855
Podravske
Sračinec 4.714 1.778 Veliki Grđevac 3.313 Klana 1.931
Sesvete
Sveti Đurđ 4.174 Rasinja 3.818 Veliko Trojstvo 3.092 Kostrena 3.897
Sveti Ilija 3.532 Sokolovac 3.964 Zrinski Topolovac 1.000 Lokve 1.120
Trnovec
6.852 Sveti Ivan Žabno 5.628 - - Lovran 3.987
Bartolovečki
Mošćenička
Vidovec 5.539 Virje 5.197 - - 1.641
Draga
- - - - - - Punat 1.876
- - - - - - Skrad 1.333
Vinodolska
- - - - - - 3.530
općina
- - - - - - Viškovo 8.907
- - - - - - Vrbnik 1.245
Plitvička
4.668 Nova Bukovica 2.096 Kutjevo 7.472 - -
Jezera
- - Voćin 2.421 - -
- - Zdenci 2.235 - - - -
Mursko
6.548 Korčula 5.889 Buje 5.340 Hvar 4.138
Središće
Dubrovačko
Dekanovec 832 2.216 Vis 1.960
primorje
Donja
2.274 Vrlika 2.705
Dubrava
Donji
4.931 Janjina 593 - -
Kraljevec
Gornji
2.046 Lastovo 835 Barban 2.802 - -
Mihaljevec
Sveta Marija 2.433 Trpanj 871 Kaštelir - Labinci 1.334 Brela 1.771
Sveti Juraj na
5.279 Vela Luka 4.380 Kršan 3.264 Cista Provo 3.674
Bregu
Sveti Martin
2.958 Zažablje 912 Lanišće 398 Dicmo 2.657
na Muri
Župa
Šenkovec 2.770 6.663 Ližnjan 2.945 Dugi Rat 7.305
dubrovačka
Sveti Petar u
- - - - 1.011 Milna 1.100
Šumi
- - - - - - Postira 1.553
- - - - - - Prgomet 797
Primorski
- - - - - - 839
Dolac
- - - - - - Proložac 4.510
- - - - - - Pučišća 2.224
- - - - - - Runovići 2.643
- - - - - - Seget 4.904
- - - - - - Selca 1.977
- - - - - - Sućuraj 492
- - - - - - Sutivan 759
- - - - - - Šestanovac 2.685
- - - - - - Šolta 1.479
- - - - - - Tučepi 1.763
- - - - - - Zadvarje 277
- - - - - - Zagvozd 1.642
- - - - - - Zmijavci 2.130
Biograd na
Municipalities Skradin 3.986 Bilje 5.480 5.259
Moru
Lišane
Jarmina 2.627 Promina 1.317 Gorjani 1.832 764
Ostrovičke
Kneževi
Markušica 3.053 Ružić 1.775 5.186 Pakoštane 3.884
Vinogradi
Otok
7.755 - - Marijanci 2.719 Posedarje 3.513
(Vinkovci)
Stari
3.387 - - Podgorač 3.314 Privlaka 2.199
Mikanovci
Podravska
Tompojevci 1.999 - - 1.451 Ražanac 3.107
Moslavina
Satnica
Trpinja 6.466 - - 2.572 Starigrad 1.893
Đakovačka
Sveti Filip i
Vrbanja 5.174 - - Strizivojna 2.759 4.482
Jakov
- - - - Vladislavci 2.124 - -
- - - - Vuka 1.312 - -
Brod – Posavina County Brod – Posavina County Brod – Posavina County 176.765
Brodski
3.526 Gundinci 2.294 Sikirevci 2.707 - -
Stupnik
Staro Petrovo
Davor 3.259 Okučani 4.224 6.352 - -
Selo
Donji
4.393 Oprisavci 2.942 Velika Kopanica 3.570 - -
Andrijevci
12.30. ANNEX
Map 12-1: Organigram of DMSSA– - future IPARD Paying Agency
12.31. ANNEX
Map 12-2: Organigramme of the DRD IPARD MA