1. BERRY ECONOMICAL IMPACT IN BALCAN AGRICULTURAL SYSTEMS Mario Njavro, PhD Faculty of Agriculture University of Zagreb Department of Farm Management COST 863 Euroberry Socio-economic seminar Bordeaux, France, 01.-04 April 2007

2. Overview Berry fruits production statistics Strategy issues- the case of Croatia –StrengthsInternal (Farm level) –Weakness –OpportunitiesExternal –Threats

3. Fruit and vegetables production Source: FAO stat

4. Production and yields

5. BERRY ECONOMICAL IMPACT AND RURAL DEVELOPMENT-THE CASE OF CROATIA

6. Economic indicators- Croatia

7. Situation in the agricultural sector or how berry production could make an difference? Facts and consequences –Transition and privatization –War –High level of import of agricultural products –Low self sufficiency level –Unfavorable farm structure (land size, age, education and diversification) –Undeveloped market infrastructure and distribution channels, –Unorganized agricultural production –Quality standards? –Undeveloped land market, –Undeveloped rural financial market –Low level of competitiveness

8. Could berry production make difference?

9. Opportunities (1) Croatian Extension Service

10. Opportunities (2) Climate and soil conditions Trends in consumption Market chains? Quality standards Processing industry Tourisms –Rural tourisms? Governmental programs –Operational programs –Incentives Pre-accession funds –SAPARD –IPARD

11. Opportunities (3) “Brand” names Traditional products Village markets

12. Opportunities (4) Technology –Out-of-season production –Hydroponics production Cooperation? Vertical integration

13. Break-even analysis- strawberry production

14. Threats Trade liberalization and competition EU Accession? Negative demographic trends in rural areas

15. Weakness (1) 1. competitiveness

16. Weakness (2) 2a. Farm structure

17. Weakness (3) 2b. Farm structure- % of off-farm income

18. Weakness (3) Management capacities

19. Strengths Awareness! Young, educated farmers Development of agribusiness sector

20. Final remarks Adequate and appropriate training on management and advisory services Technical assistance in production, post harvest operations and introduction of quality standards Effective and efficient market information or intelligence Research

21. Thank you!