engleski

Croatian agriculture towards world market liberalization

Croatian agriculture is in crisis due to transition problems to market economy. The aim of this paper is to explore limitations of Croatian agriculture as well as possibilities that come along with associations to world and European organizations and associations. Agriculture in Croatian economy participates with 7% in GDP, 11% in employment, 10% in total export and 9% in total import. Important inhibitor for more efficient agricultural production is fragmented family farms (2.6 ha in average) as well as insufficient technological and educational level of agricultural producers what results in low average yields in plant production and in animal husbandry. Foreign-trade exchange of agricultural products in Croatia is constantly negative and increasing (since 1994) with 47% export-import ratio in 2004 and almost 600 mil USD deficit in 2001-2003. Concerning regional distribution of agricultural foreign-trade, Croatian agricultural export is very concentrated (coefficient 95%) and mostly dependent to EU, while export is scattered (concentration coefficient 61%), mostly related to ex Yugoslavia countries, especially Bosnia and Herzegovina. Croatia intensified association processes to world and European trade organizations (WTO, free trade agreements with some European countries, Stabilization and Association Agreement - SAA as well as EU accession negotiation process). Regarding consequences of SAA and WTO agreement to Croatian agriculture, it can be concluded that Croatian agricultural exporters has important opportunity to penetrate EU and world market. The problem is lack of competitiveness of Croatian agricultural products on those markets. On the other hand, SAA and other trade agreements will affect positively to consumers concerning tougher competition and lower prices. Croatian farmers are very concerned because of low level of competitiveness of Croatian agricultural products in domestic and EU market, although analysis showed that serious import increasing is not expected in agricultural and fishery sector. For the purpose of better adoption of Croatian economy according to SAA liberalization as well as Common Agricultural Policy, solving of Croatian agricultural problems is suggested as a strategy for easier integration to EU. It concerns changes in agricultural policy, measures of agricultural sector consolidation via development of Croatian agriculture competitiveness level to European, as well as institutions creating and regulatory system harmonized to EU.

agriculture ; market ; liberalization ; EU accession

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