1. Technical Assistance for Development of a Strategy for Alignment with
Common Market Organisation (CMO) Requirements
TR2014/AG/10-A1-01/001
This Project is co-financed by the European Union and the Republic of Turkey
Implementation of contractual relations in the EU Member States in sugar sector: case study Croatia
Miroslav Božić
Ankara, 10th May, 2018

2. Content Importance of sugar sector in Croatia
Contract system and challenges in the future

3. First sugar rafinery in Europe:
Rijeka in Croatia!
Maria Theresa, anno domini 1750
„Urbano Arnoldt & Co”, Antwerpen
Austria, NL, Italy and Croatia
„Zuccheriera” with 700 employees …
What do Austria, Netherlands and Croatia have in common?
Konrad hint iz 2016.
Godine u RH tri šećerane: oldest Osijek and most modern VIRO! Joke!
1826 bankruptcy; 1851 tobacco; &
1970 protected cultural heritage 3

4. good or bad for sugar industry?
Accession to the EU:
good or bad for sugar industry?
SUGAR the most sensitive item for Croatia in EU negotiations!
Beet quota sugar: t
Import of raw cane sugar ↘
Production levy ↗
My role in negotiations! PLEWA and others … Christmas and Jesus Zorilla!!!
Refinery status for all 3 factories 4

5. Sugar production in Croatia: before and after the EU accession
Results after 5 years of EU membership:
Lower production of beet sugar
Higher production of cane sugar
High volatility of prices and profitability
However, sugar remained No. 1 in Croatia’s agri-food export!
But … TOLLING NOT INCLUDED!!!
Double the share of second (cigarettes!) unhealthy! 5

6. „Sugar Tigers of South East Europe”
Total export from Croatia and Serbia in period
Croatia’s sugar export: 2,7 mil t / 2,0 bill. USD
Export in MT
12,5 million of EU consumers! Last decade or so … Hrvatska poljoprivreda u odnosu na EU: Šećer po važnosti na 2. mjestu !
Serbia’s sugar export: 2,9 mil t / 2,0 bill. USD 6

7. Contracting in sugar sector after accession to the EU
First mandatory contracts after joining the EU
Role of Association of sugar beet growers
Communication to the competent authority
Two out of 3 factories concluded agreements
Delivery contracts in compliance to EU rules
Main challenges in implementation:
Renegotiation in 2015 due to low sugar prices
Transport, loading and beet cleaning costs

8. Example of value sharing in Croatian sugar beet contracts for 2018/19
Basic price for standard quality beet: 31 EUR/t

9. Future of sugar industry in Croatia
Is there a future after quota termination ?…
CAP as the framework for further development in post-quota period
Coupled payments for beet until 2020 → guarantee for survival
Rural development program → productive & non-productive investments
Partnership between bet growers & industry + strategic partnership!
Potential growth of export on global (MENA) & regional markets
The biggest challenges:
Sugar yields increase &
restructuring / consolidation
We do believe in CAP and Europe!
Still 9

10. This publication has been produced with the financial assistance of the European Union
The contents of this publication is the sole responsibility of NIRAS IC Sp. z o.o. and can in no way be taken to reflect the views of the European Union

11. Opportunities & Threats
SWOT
Opportunities
Sugar deficit on regional markets
Hugh potential for sugar yield increase
Industrial sugar use outside human consumption & energy
Good logistics and hub for trade
SWAT
Threats
Change of beet with other crops
Climate change: droughts, floods
Strong competition by large scale global producers & isoglucose production
Subsidy policy in the EU, less coupling 11