Slaven Aljinovi ć , CTO/Agribusiness Specialist USAID Croatia

1. Slaven Aljinović, CTO/Agribusiness Specialist USAID Croatia

2. USAID AGRIBUSINESS PROJECTSACE & RIEDA From Field to Fork

3. Executive Summary Mission:Support the strengthening of the agribusiness sector of Croatia Duration:2003-2008 Clusters: Milk production Pork production Fruit &vegetable production

4. 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

5. GOAL - Strengthened Agribusiness Chain Distribution/ transport Sales Competitionhas changed from “Between Companies” to “Between Chains” Processing - GMP HACCP End Users Farm - GAP

6. 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

7. Project Activities • Provide consulting services/education to all agribusiness chain participant • Co-finance establishment & replication of model “pilot projects” • Support access to sources of finance

8. Project Partners &Results • Increased production • Increased competitiveness • Quality control & branding • Introduction of new production technologies • Strengthened producer organizations • Implementation of EU standards& legislative requirements

9. 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

10. 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 

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

12. 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

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

14. 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  

15. 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

16. 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)

17. Establishing EU-based Quality Standards EurepGap certification “Neretva Valley mandarines”

18. 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

19. Standard “Fruits&Vegetables” Encompassed 14 GAP areas: • Traceability • Documents Mgmt. /audit • Plant material • Site Management & History • Soil Management • Fertilizers • Water Mgmt./Irrigation • Pesticides Application • Harvest • Storage • Waste Mgmt. • Workforce – protection/safety/hygiene • Environment • Complaints

20. Rezultati • Traceability Document Control Sometimes present • Protection of people& environment • Workforce protection

21. 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%

22. 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)

23. 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

24. 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

25. QUESTIONS HAVE A NICE DAY !