Slaven AljinoviSlaven Aljinovićć, ,

CTO/Agribusiness SpecialistCTO/Agribusiness Specialist

USAID CroatiaUSAID Croatia

USAID AGRIBUSINESS PROJECTSUSAID AGRIBUSINESS PROJECTSACE & RIEDAACE & RIEDA

From Field to ForkFrom Field to Fork

Executive SummaryExecutive Summary

Mission:Mission: Support the strengthening Support the strengthening of the agribusiness sector of of the agribusiness sector of

Croatia Croatia

Duration:Duration: 2003-20082003-2008

Clusters:Clusters: Milk productionMilk production

Pork productionPork production

Fruit &vegetable Fruit &vegetable productionproduction

State 2003 & New Trends

State: • Fragmented & non-competitive agriculture• War destruction• Loss of traditional markets• Weak “Agribusiness Chains”

Trends: • Appearance of “New Buyers”• Industrialization of agriculture• Sharp drop of number of producers

Farm - GAP

Processing - GMPHACCP

Distribution/transport

End Users

GOAL - Strengthened Agribusiness ChainGOAL - Strengthened Agribusiness Chain

CompetitionCompetition has has changed from changed from

“Between Companies” “Between Companies” to “Between Chains” to “Between Chains”

Sales

Key Areas of Preparation for EU Membership

• Environment• Animal Welfare• Common Agricultural Policy (CAP)• Food Safety• Payment of farm subsidies• Livestock Disease Control• EU Pre-accession funds• Producer Organizations• Quality Assurance• Niche Product Registration

ProjeProject Activitiesct Activities

Provide consulting services/education to all Provide consulting services/education to all agribusiness chain participantagribusiness chain participant

Co-finance establishment & replication of Co-finance establishment & replication of model “pilot projects”model “pilot projects”

Support access to sources of financeSupport access to sources of finance

Project Partners &ResultsProject Partners &Results

Increased productionIncreased production

Increased competitivenessIncreased competitiveness

Quality control & brandingQuality control & branding

Introduction of new Introduction of new production technologiesproduction technologies

Strengthened producer Strengthened producer organizationsorganizations

Implementation of EU Implementation of EU standards& legislative standards& legislative requirementsrequirements

Dairy/Swine Clusters

• Dairy Parlours– PZ Lovas; Domačinović• Milk Cooling System – SME Dairy “Veronika“• Dairy Farm Ventilation Systems – LURA dairy farmers• System of Milk Cooling Tanks – FC Velebitska Degenija; Farmers Coop (FC) Zagorka; Krizevci SME Dairy• Soybean processing – Sizim Ltd.• Swine Fever Prevention Program – Farmers Association (FA) “Naša zemlja” - Požega • Swine Production improvement – Felix Ltd.; FC Mostec; FC Dalj• GAP—FA Holstein; Croatian Association of swine producers; FA Simmental Požega

Strengthened Producer Organizations

• Association of large dairy farms “ Mliko” • Association of SME Milk Processors• Central Swine Producers Association• Croatian Beekeepers Association • Central sheep&goat producers

Association 

Fresh Produce

 • Controlled quality of inputs• Postharvest Management • Environmental Protection – fertirrigation• Extension of Season• Quality Control • Irrigation• Greenhouse production• Hydroponics

Quality Standards & Branding

• EurepGap certification – Dad Neretva• IPM branding – jabuka “Regina” (PZ

Čakovec)• Istrian Malvazija Wine Quality – Vinistra• PGI – Pag Cheese, Istrian Prsut• PDO – Ogulin Sour Cabbage

Rural Tourism & Niche Products Development • Niche Cheese Production• Smoked Ham Production• PDO Certification • PGI Certification• Rural Tourism Development • “Kulen” Production 

Education/study tours on EU membership related issues

• Preparing for SAPARD – Estonija & Czech Republic• Swine Fever Prevention – Holland• Foot&Mouth Disease Prevention – UK• Fresh Produce Pesticide Residue Control - UK• Strawberry Production – California• “Farmers Markets” – California• EU Producers Organizations (CMO) – Italy• Registration of Niche Products – Italy• FADN Implementation – Estonia• Animal Welfare– Finland• EU Common Agricultural Policy (CAP) – UK• Training of SAPARD Trainers – Slovenia• Postharvest Mgmt - UC Davis  

Access to Finance

• DCA for milk, swine & horticulture production - Erste Banka/LURA

• SAPARD project preparation – Žito Ltd.; Pag SME Dairy

• Ministry of Agriculture „10*10“ Program

Linking Science, Producers & Food Processing Industry

 • Higher School “Marko Marulić Knin’ –

Practicum for cheese production

• Higher Agriculture School Krizevci – Practicum for greenhouse production

• Agronomy College Zagreb – Croatian Agribusiness Centar (Website)

Establishing EU-based Quality Standards

EurepGap certification “Neretva Valley mandarines”

EurepGap Cerification Phases

• 2006 – Austrian buyer informs that EurepGap is required

• 2006 – preparations with group with DAD Neretva & selected group of 35/200 mandarine producers

• 2006 – certification of DAD Neretva & 28 farmers

• 2007 - preparation &certification of additional 36 farmers

Standard “Fruits&Vegetables”

Encompassed 14 GAP areas:

1. Traceability2. Documents Mgmt. /audit3. Plant material4. Site Management & History 5. Soil Management6. Fertilizers7. Water Mgmt./Irrigation8. Pesticides Application9. Harvest10. Storage11. Waste Mgmt.12. Workforce – protection/safety/hygiene13. Environment14. Complaints

Rezultati

• Traceability

Document Control

• Protection of people& environment

• Workforce protection

Sometimes present

USING EU Pre-Accession Funds

• SAPARD – 2005/2008

• Measures: 1) Farms (milk/pork) 2) Food processing facilities 3) Rural Infrastructure

• Funds: Total 25.5 mil. Euro - (75/25%) Measures 1&2 – 19 million Euro Obligated cca. 60%

USAID SAPARD Related Activities

• Ministerial trip to Estonia (Summer 2005)

• Operational Managers trip to Czech Republic (Autumn 2005)

• Slovenian “Training of Trainers” (January2006)

• SAPARD Fund Users Support (2006-2007)

SAPARD Implementation Problems

• State/slow mobilization of Government Bureaucracy

• State of potential users/agribusiness investors

• Croatian SAPARD Rules: Documentation Format

Financial indicators Book-keeping

Requirements Environmental

Assessment

SAPARD Utilization Results

• 1 Round (Dec 2006) – 6% utilization

• 2 Round (August 2007)

• End Results – 29 approved projects 147/87 million Euro 59% utilization

• 2008 - EU complaints 5 million Euro cut in IPA funds

QUESTIONSQUESTIONS

HAVE A NICE DAY !HAVE A NICE DAY !