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Agriculture and Agricultural Policy in Croatia

During the past two decades Croatia has faced numerous challenges: gaining independence, war conflicts, political and economic transition and the process of European Union (EU) accession. Despite rich and diversified landscapes and cultural heritage, it is still faced with problems limiting the economic development. Agriculture after independence shows increase in utilized area, but the production is still below pre-war level and results with unsteady and modest value. Harmonization with Common Agricultural Policy (CAP) standards is still in process ; big steps have been made in establishing new institutions in agriculture and preparing adequate legislative framework and there are no significant formal differences between Croatian and European agricultural policy, but European agricultural policy models still cause problems. Croatia entered in EU with a low degree of self-sufficiency of the domestic production, low competitiveness, uncontrolled import of farm products and in the moment of deep economic crisis. Croatia has highly fragmented and polarized farm structure, where few big farms prevail at market and in absorption of significant financial support from agricultural budget, while middle-sized farms, as backbone of agriculture and rural development, are missing. Although Croatia always emphasizes good examples of New member states (NMS) and neighboring countries, especially those with similar economic and political history (Slovenia using agri-environmetal funds, Poland in using pre-accession and EU cohesion funds in general, Serbian positive external agri-food trade balance) the main problem of defining direction of national economy and priority in agricultural policy still remains unresolved. Croatian agricultural policy is swallowing in average half a million of Euros each year for agricultural subsidies and administration, but still it did not succeed to meet the challenges of full adaption to new circumstances in the frame of economic crisis and new liberalized market. The intention of this analysis is to point out the main reasons of Croatian delays and issues in the process of adjustment to European standards and opportunities, and rather disorientation in creating (agricultural) policy goals and measures for their realization.

Agriculture, Agricultural Policy, Common Agricultural Policy (CAP)

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