Analysis of the Croatian vegetables market

Abstract

Croatian accession to the European Union has increased exposure of domestic vegetable growers to competition from foreign markets making this market more vulnerable. The aim of this study was to determine the situation and problems on the Croatian vegetables market. Based on the method of supply balance sheets this paper analyzes the vegetable market in Croatia in the period from 2010 to 2012. Results showed that Croatia is not self-sufficient in vegetables production (self- sufficiency rate is less than 67%). In the last three years potatoes, tomatoes, carrots, onions and garlic were Croatia’s most important commodities, which made up 66% of the total domestic production of vegetables. Total vegetables human consumption in 2012 amounted to 114.3 kg / per capita (pc), with the highest per capita consumption being for potatoes (44 kg / pc), followed by tomatoes (15.8 kg / pc), onion and garlic (9.9 kg / pc), and carrots (6.7 kg / pc). The domestic vegetable market is characterized by a negative foreign trade balance and dependence on imports. The biggest amount of vegetables is imported from the Netherlands, Italy and Spain. Insufficient domestic vegetable productions is the result of fragmented structure of mostly small family farms, unmanaged production infrastructure, lack of heating and irrigation systems, as well as lack of systems for protection from hail and frost, and lack of storage capacity. Also, one of the biggest problems of Croatian vegetable market is inefficient distribution because growers often do not have the financial and/or organizational ability to act independently in the market which causes high logistics costs. Competitiveness of the Croatian vegetable market can be increased by consolidation and technological modernization of production, and encouraging vertical and horizontal integration of all stakeholders in the supply chain of vegetables.