1

Investing in public-private approaches for promoting

origin-linked products and supporting rural

development:

The role of Geografical Indicators

INVESTMENT DAYS – GI session

Rome, 16 December, 2011

Jasna Mikačić

Croatia today

2010

GDP growth rate : -1.2%;

GDP per capita: € 10,374

Average inflation rate 2010: 1.1%

Unemployment rate end 2010: 18.8%

Agriculture share in GDP : 5%

Recent trends 2011

GDP growth rate: 3Q 2011: + 0.6%

Retail turnover October 2011/10: +1.8%

Industry October 2011/10: +0.6%

28th EU Member in 2013

9th December 2011- Accession Treaty signed

4.290.612 inhabitants

56.542 km²; total 87.661 km²

FMCG

AGROKOR

RETAIL AGRICULTURE

LEDO

FRIKOM

LEDO BiH

LEDO KFT

AGROKOR

TRGOVINA

JAMNICA

SARAJEVSKI

KISELJAK

FONYODI

NOVA SLOGA

KONZUM

IDEA

KONZUM BiH

PIK VINKOVCI

BELJE

VUPIK

PIK VRBOVEC ZVIJEZDA

DIJAMANT

SOJARA

TISAK

AGROLAGUNA

SOLANA PAG

Agrokor Group today

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4

Agrokor – taking care of our customers every day!

Consolidated revenues of EUR 3.6 bn

Strong #1 market positions in all businesses

Diversified portfolio of leading brands

Constant innovation and great customer focus

State-of-the-art facilities

Operational excellence

Y 2010

0

1.000.000

2.000.000

3.000.000

4.000.000

2002 2010

5

Above average yields!

Agriculture

18 hog-breeding farms; 7 dairy farms, 10 heifer

stall-feeding farms and 2 heifer reproduction

farms

Biggest robotized dairy cow farm in Europe with

total capacity of 550 livestock

“From farm to fork” quality control

Leading position

in agriculture

Full

automatization of

processes

Enhancing regional

development and

integration

Control of 557,000 tons of crops

38,800 ha of own land

2,820 ha of vineyards

Control of the raw material supply provides

competitive edge

All beef and dairy farms modernized and

overhauled

Continuous investments into viticulture

Revenues (000 HRK)

Yield (tons) per ha

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

Corn Sunflower Soy Rapeseed Wheat Barley

Agrokor Croatian average

6

“From field to table” business model

Agriculture

Baranjski kulen

North-eastern part of Croatia; Pannonian valley

Lower flow of Drava before its confluence into the Danube

Marshland Kopački rit – a world-known bird refuge, nature park

Lowland area, favourable for agricultural development

Home of food product made of pork- Baranjski kulen - national feature, symbol of wealth, served on special occasions

Long tradition of home production, but also production segment of Belje d.d. – over 300 years old agricultural estate owned by Agrokor since 2005.

Still produced according to old masters’ recipes from raw material gained from the pig breeding farms in Baranya

Baranjski kulen

Fermented long-life sausage made of

chopped pork, paprika, garlic and white pepper, stuffed in a pig’s caecum.

The taste is slightly hot, with the characteristic flavor of smoke-dried fermented meat.

Main raw material: mid-sized pigs (~130 kg), parts: shoulder, back muscle and leg and paprika

Production takes place in technological facilities simulating Baranya’s main climatic characteristics (temperature, humidity)

Pig feeding is a link in the closed production cycle from field to table

Baranjski kulen

Belje d.d. is the biggest producer with 250 t of kulen per year

A number of small producers produce together max 5 t per year

In view of its specific organoleptic features and long tradition in the

production, kulen is currently in the process of having its designation of

geographic origin protected in line with the provisions as stipulated by

EU Directives.

The key issue is to create a recognizable market brand and provide

continuous market supply with sufficient quantities of kulen of uniform

quality and to start exporting kulen to the regional and European

markets in the near future at a respectable price.

Additionaly, kulen is going to be a significant part of the overall touristic

offer in Baranya, together with wine and other features.

Neretvanske mandarine (Mandarines from the Neretva Valley)

South of Croatia – Neretva river has created a unique area by depositing alluvium and forming a delta mouth.

The landscape consists of an abundance of water (partly salty) and a specific 'in-water' break-down into lots which is due to the land improvement measures taken in the second half of the last century (in cooperation with FAO).

The whole area spreads over 11,500 ha, whereof arable land area amounts to above 3,000 ha.

Mandarine growing started in the year 1960 and it is the most represented culture planted on more than 50% of the arable areas. Some other sorts of fruit such as peach, nectarine, plum, grapes and kiwi account for another 5% of land.

Neretvanske mandarine (Mandarines from the Neretva Valley)

Plantation area – about 1.600 ha

Lot sizes 0,1-2,0 ha

Sorts: Unshiu, Kawano Wase, Chahara, Okitsu, Zorica, etc.

Production 50.000 – 60.000 t; Domestic consumption 20.000 t; Due time: End September to end December

Large scale productions: Few, one with 1.000 t, mostly (20-30) producers with 200 -300 t; Medium scale: 400-500 producers with 50-75 t and small scale: Over 1.000 producers with 20 t each

Number of households engaged in growing mandarines: 2.500; About 10 wholesalers that buy out, sort, calibrate and package to be sold on the retail market; AGROFRUCTUS d.o.o. is the biggest one, owned by AGROKOR

About 100 producers are Global GAP certified

Neretvanske mandarine (Mandarines from the Neretva Valley)

In 2008 biochemical

and organoleptic analysing of

mandarines started in order to

scientifically prove its

distinguishing features.

Although Neretva mandarines

are well known, there is the

intention to brand them and to

achieve better export conditions;

GI is most welcome for that

Tourism is also since recently supported by the local

government; there are fruit-picking tours combined with other

local possibilities.