engleski

FOOD PRODUCTION AND MARKETING IN CROATIA: CURRENT ISSUES

Already in 1995 food production and tourism have been proclaimed a major strategic economic actitivites that are to ensure economic development of the newly independent Republic of Croatia. Ever since than, food production in Croatia is facing some serious challenges with natural resources, human resources and technology as major input fators of food production. Some of these have been inherited form the past planned economy, and some of them have apeared as consequences of war and transition processes. As a consequence, Croatian food prodution nowadays is led by mostly small sized companies (85%), with major problems of inconsistent product quantities and quality and small ratio of recognizable branded products. Most profitable food products in Croatia are produced by companies that were bought by foreign investors. The foreign trade balance is for a long term negative and based on only a few products with low value added (sugar, tuna fish). Marketing of food products in Croatia can be analyzed thru 4P's. In terms of products, there is a high competition of foreign substitute products often of lower quality and price. This products are wellcomed by Croatian consumers in circumstances where almost 35% of household income is being spent on food. Promotional acitivites are at the very low level since marketing and especially promotion is often perceived as an unneccessary cost by food producers. In the area of distribution there is a situation of significantly stronger bargaining power of distributers than of producers. Therefore, there is a need for both macroeconomic (structural) changes in areas of ownership, production and market organization and microeconomic changes in implemetation of marketing and innovativeness by food producers in order to create the competitive advantage in both local and international market.

food production; food marketing; Croatia

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