AGRI-FOOD SECTOR IN CROATIA: CHALLENGES OF EU ACCESSION EASTAGRI annual meeting Berlin, 4- 5 May 2006 M.Sc. Miroslav Božić, Assistant Minister REPUBLIC.

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Presentation transcript:

AGRI-FOOD SECTOR IN CROATIA: CHALLENGES OF EU ACCESSION EASTAGRI annual meeting Berlin, 4- 5 May 2006 M.Sc. Miroslav Božić, Assistant Minister REPUBLIC OF CROATIA Ministry of Agriculture, Forestry and Water Management

Content: Agri-food sector in Croatia Key facts & figuresKey facts & figures Recent developments in agricultural policiesRecent developments in agricultural policies CAP: challenges for EU membershipCAP: challenges for EU membership

Agriculture in Croatia at glance GVA in GDP: 6.5%GVA in GDP: 6.5% employment: 7.3% in totalemployment: 7.3% in total average farm size: 2.4 haaverage farm size: 2.4 ha number of farms:number of farms: a) (51% up to 1 ha) – Agr. Census a) (51% up to 1 ha) – Agr. Census b) – Farm Register b) – Farm Register UUA in total area: 19%UUA in total area: 19% agricultural output: 0.6% in relation to EU-25agricultural output: 0.6% in relation to EU-25 rural population: 36.3%rural population: 36.3%

Agriculture and food industry in the national economy

Agricultural trade: Croatia & selected european countries

EU-15 and Croatia: number of holdings and average direct payments

Main agri-food export products (Ø – 2005.)

Main agricultural reforms < 1998 PRODUCTION SUPPORT (quantitative payments) PRODUCTION SUPPORT Reform 1998 Reform 2002 INCOME SUPPORT CAPITAL INVESTMENT RURAL DEVELOPMENT OTHERS COMMERCIAL NONCOMMERCIAL +

What is awaiting Croatia upon accession to the EU? Open borders for trade with all EU MSOpen borders for trade with all EU MS Production quottas for milk & sugarProduction quottas for milk & sugar Decrease of production support with increased budget for structural measuresDecrease of production support with increased budget for structural measures No support for planting permanent crops; no incentives for fisheryNo support for planting permanent crops; no incentives for fishery Set quality standards & marketing conditionsSet quality standards & marketing conditions Better administration and controlBetter administration and control Export subsidies privilegeExport subsidies privilege

CAP: Challenges for EU membership Harmonisation of support systemHarmonisation of support system Establishment and accreditation of Paying Agency (IACS/LPIS)Establishment and accreditation of Paying Agency (IACS/LPIS) Implementation of rural policy measuresImplementation of rural policy measures Establishment of FADNEstablishment of FADN Strengthening of advisory serviceStrengthening of advisory service Food safety & market organizationsFood safety & market organizations Strengthening of inspection servicesStrengthening of inspection services

Thank you for your attention