An exploration of distribution channels: Challenges and opportunities for organic food producers in Croatia

Abstract

Organic market in the EU is growing faster than the area of production and is facing many problems and challenges. In order to obtain more information of the structure and organizational features of the organic farms in the Republic of Croatia, as well as perceptions of organic food producers about barriers that disable faster development of organic food market, empirical research was conducted on the sample of 66 organic food producers. Research findings suggest that the largest number of organic farms are small farms up to 5 hectares (ha). Organic food producers are the most prominent in the field of fruit production, and key motives for engagement in organic agriculture are their personal beliefs, health reasons and environmental care. Regarding the distribution of the organic food products, most producers sell their organic food products directly to the final consumer, mostly on family farms and local fairs. Regarding indirect distribution, specialized stores are dominant retail format, followed by wholesale. The paper gives valuable contribution, as it lists the producers' proposals for further development of organic food products market in Croatia.