Food production and rural development – Croatian perspective within the European context
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This research tries to answer three main questions: how important is agri-food sector for Croatian
economy, why is Croatian agriculture uncompetitive compared to sectors in majority of the EU countries
and what mechanisms of CAP could be used to improve agricultural competitiveness and sustain and
develop rural life. Results show that agriculture and food processing industry are rather important for
Croatian economy, contributing with more than 9% in the total GDP, with about 11% in total export
and import and with more than 20% in total employment. However, within the EU context, agrifood
sector is of little importance with a share of only about 1% in main economic indicators. Despite
favourable natural resources, historical, organizational, economic and institutional reasons explain
difficult situation in agriculture and in rural areas. Policy makers are trying to resolve these issues, now
by available CAP mechanisms of income support and rural development. Despite considerable financial
resources available for Croatian farmers, there is fear that the funds will not be adequately utilized.
However, results of the previous research suggest that Croatian agriculture and food production still has
a chance to survive and grow within European political and economic circumstances.