Required Report - public distribution

**Date:** 10/3/2007

**GAIN Report Number:** HR7007

HR7007

**Croatia**

**Exporter Guide**

**Annual**

**2007**

**Approved by:**

![](media/image1.wmf)Quintin Gray

U.S. Embassy Zagreb

**Prepared by:**

Andreja Misir

**Report Highlights:**

Croatia imports a significant portion of the food it consumes. The
prospect of EU accession, the country\'s steady growth in tourism, and
continued economic reform could make Croatia a significant long-term
importer of certain U.S. food products, including the following:
seafood, wine, pet food and consumer food products. Croatian consumers
are strongly anti-biotech.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Zagreb \[HR1\]

\[HR\]

**I Market Overview**

###### 

###### Economic Situation

On October 3, 2005, Croatia began negotiations for accession into the
European Union (EU). The prospect of EU membership has focused
government efforts concerning economic and other reforms. The driving
force behind the Government of Croatia's agenda is to finalize its
negotiations with the European Union and to obtain full NATO membership
that provides a security framework for its improving economic and social
prospects. Croatia is a member of the WTO and has 9 bilateral trade
agreements (Macedonia, Bosnia and Herzegovina, EU-27, EFTA, Turkey,
Serbia and Monte Negro, Albania, CEFTA, Moldova).

Croatia has made considerable progress in creating a market economy and
establishing macroeconomic stability. The exchange rate of the kuna is
stable against the Euro, interest rates have fallen, and bank lending
has boomed the past several years. Unemployment appears to have peaked
in 2000/2001 and positive trends (more employment in private sector
firms) began in 2002 and continued through 2006. GDP is also steadily
growing from year to year but unfortunately, Croatia\'s gross external
debt in 2006 was EUR 29,199 million.

[]{.mark}

**Demographic Developments and Their Impact on Consumer Buying Habits**

Croatia's population is about 4.4 million and is stable. The age
distribution is as follows: 0 to 14 years/17.10 percent; 15 to 64
years/67.20 percent; 65 and over/15.70 percent (census 2001). The number
of elderly and retired persons is rising, but they tend to have small
pensions (the elderly are not the economic force they are in other
countries).

###### Food Expenditures

In 2005, total consumption of goods per household was \$11,711 (Kn
69,683). In 2005, total food and beverage consumption per household was
33.21 percent of total household consumption. Household consumption of
foods and beverages increased by 22.79% in 2005 as compared to 2000.
Alcoholic beverages and tobacco amounted to 4 percent of total household
consumption in 2005 and consumption of these products has been
relatively stable in the past three years.

###### Size and Growth of the Consumer Foods Market

####### General

In 2005, distribution trade (including total wholesale and total retail
sales and including VAT) amounted to Kn 227.98 billion (\$ 38.32
billion), which was about 8.6% increase compared to 2004. In 2004,
wholesale trade in the following items: cereals, flowers and plants,
live animals, hides, skins, leather, raw tobacco, fruits and vegetables,
meet and meet products, dairy products and eggs, alcoholic and other
beverages, tobacco products, sugar, chocolate, sugar confectionary,
coffee, tea, spices, fish, clams and crabs and other food products
excluding VAT was Kn 22 billion (\$ 3.7 billion). In 2004 retail trade
in the following items: fruits and vegetables, meat and meat products,
fish, clams and crabs, bread, cakes, flour confectionary, sugar
confectionary, alcoholic beverages, other beverages, tobacco products
and other food products excluding VAT was Kn 26 billion (\$ 4.3 billion)

In 2006, Croatia imported agricultural products, fish and food (HS 1 --
24) valued at \$1.834 billion and exported \$1.186 billion worth of
these goods. In 2006, the agricultural trade deficit amounted to \$648.5
million. In the last few years, Croatia's food imports grew as did the
country's trade deficit. However, in 2005 and 2006, Croatia's food trade
deficit decreased slightly.

There is little specific data on sales of food products by class or
type.

####### Beverages

Fruit and vegetable juice imports in 2006 were \$18.7 million, which was
about 26 percent increase compared to 2004.

In 2005, annual average consumption per household member was:

coffee 3.73 kg ,

tea 0.32 kg ,

cocoa 0.33 kg,

mineral water 32.73 kg,

soft drinks 12.58 kg,

fruit juices 15.99 kg,

syrups and concentrates 4.31 kg or l

spirits 0.64 l

wine 10.75 l

sparkling wine 0.14 l

beer 20.80 l

####### Chocolate

According to research firms, retail trade (excluding cash & carry
stores) sold 1,589 MT of chocolate bars (Snickers bars, Twix bars, Mars
bars, etc) or Kn 127.5 million (\$17.58 million) from February 2002
until February 2003. The top five brands in 2002 were: Kinder, Bananko,
Mond, Twix, Snickers. These brands made up 64 percent of the market.
Chocolate bars are only 20 percent of total Croatian chocolate
consumption per year.

**Food service (restaurants)**

According to the Croatian Statistical Institute, hotels and restaurants
sales for foods, non-alcoholic and alcoholic drinks totaled Kn 3.94
million (\$662,221) in 2005. Sales in this sector have been trending
upwards (despite the slide of the dollar) from 2000 to present.

####### Seafood

In spite of Croatia\'s lengthy Adriatic coastline, the country struggles
to catch and produce seafood. Croatia lacks modern vessels, as well as
the infrastructure needed to transport and process seafood. Meanwhile
the demand for seafood is increasing, as Croatia becomes a more popular
tourist destination. This could make Croatia an excellent market for
U.S. seafood. Consumption of sea and fresh water fish in 2005, according
to Croatian Statistical Institute, was 7.84 kilograms per capita plus
additional 1.22 kg per capita of seafood and 0.93 per capita of dried,
smoked, salted and other preserved or processed fish. Total imports of
fish and seafood in 2006 were about \$105 million, which represents a
significant increase compared to \$70.7 million in 2004. Seafood imports
have been steadily growing for a few years now.

Tourists that come to Croatia expect seafood, but Croatia suffers from a
shortage of domestically caught fish. Thus, there are export
opportunities for U.S. suppliers of seafood, especially for the tourist
trade.

## Advantages and Challenges of U.S. Suppliers in the Croatian Market

  ------------------------------ ----------------------------------------
  Advantages                     Challenges

  Growth in tourism              Negative attitude towards foods
                                 containing or made from biotech products

  Urban population growth        Reservations towards products with
                                 chemical food additives

  An aging population            U.S. food products are at a tariff
                                 disadvantage compared to goods from the
                                 countries with which Croatia has
                                 bilateral agreements

  Certain fruits, vegetables,    High shipping costs
  dried fruits and rice are not  
  produced domestically          

  Shortages of some agricultural Lack of awareness of U.S. goods; no
  products like beef, pork,      concept of U.S. quality by consumers
  soybean meal, and certain      
  types of seafood               

  Most importers speak English   The government adopting restrictive EU
                                 Phytosanitary regulations
  ------------------------------ ----------------------------------------

# 

**II. Exporter Business Tips**

###### Local Business Customs 

Food retailers buy domestic and imported products from wholesalers. For
the most part, the wholesale sector is completely privatized.
Restructuring of the retail segment also occurred as retail chains were
privatized during 1990s and acquired by larger groups and new private
retailers emerged on the market. The retail sector is dominated by
foreign supermarket chains like: Billa, Kaufland, DM, Ipercoop, Metro,
Mercator, Interspar; and domestic supermarket chains like Konzum, Getro,
KTC, Kerum, Presoflex. Large supermarket chains have their own
purchasing sections that buy, store, and distribute foodstuffs
centrally. These purchasing units also carry out imports. However, some
items are purchased through specialty wholesale importers.

###### General Consumer Tastes and Preferences

Croatians, in general, reject food that contains or is made from biotech
products. Consumers generally will not buy food-containing biotech
content even if it is considerably cheaper.

  -------------- ----------- ---------------- --------------- -------------
  Numbers are    Yes, I      No, under no     I don't know,   I don't care,
  percentages    would       conditions I     not enough      indifferent
  (%)            consume GM  would consume GM information     

  Croatia\*      8.2         66.8             16.4            8.4
  -------------- ----------- ---------------- --------------- -------------

\*Result of research by personal survey in Croatia on a sample of
n=1,000 respondents (age 15+), June 2005, survey done by Gfk Croatia

Consumption of "light" or dietary products is increasing. Sugar free
chewing gums are more popular than gums with sugar. Croatians prefer
chocolates to other sweets. Smoked and salted meats are popular.

According to research conducted by the Hendal company and based on a
random sample of 401 interviewees from all over Croatia, consumers had
the following opinions regarding organics:

-   11.7% of all Croatians have never heard of organic products

-   88.3% interviewees have heard of organic food

-   42.9% of Croatians are able to distinguish organic products in shops

-   35.6% of interviewees do not consume organic food at all, and most
    of them 44.9% consume organic products only occasionally.

-   19.5% of interviewees regularly consume organic products

###### Food Standards and Regulations

See GAINS Report [HR7004](http://www.fas.usda.gov/scriptsw/AttacheRep)
Country Report for information on standards and regulations and
[HR7006](http://www.fas.usda.gov/scriptsw/AttacheRep) Export Certificate
Report for information on export certificates.

###### General Import and Inspection Procedures

Incoming goods must go through custom storage at transport terminals or
airports. After the goods arrive at the custom storage, the importer or
freight forwarder should start procedures for checking and clearing
goods, which includes special documents that should be sent to the
Inspection Departments and the Customs Office. The procedure starts at
the Sanitary Inspection Department of the Ministry of Health, which
checks all products (except meat, which is checked by Veterinary
Inspection Department from the Ministry of Agriculture). Samples are
taken for food safety inspection every time an import arrives. Products
are also inspected for quality. Products that can be made from biotech
products are also sampled and sent to the laboratory for testing (see
GAINS report, [HR 7003](http://www.fas.usda.gov/scriptsw/AttacheRep)
Biotech Annual). If the border inspector (sanitary or veterinary) trusts
the importer, on the basis of regular importing, than products are
inspected only periodically (e.g. every three mounts). The importer must
pay for product inspections. If products are of suspicious quality
and/or health standards their sales will be banned until analyses is
conducted. Custom clearance and removal from storage is carried out
under the supervision of a custom officer who compares the documents
with the commodities after they were checked for quality and a sanitary
or veterinary inspector checks for quality, ingredients and health
standards.

Custom rates can be found at:

http://www.carina.hr (This web site is only in Croatian. For
clarification, contact your Croatian partner or one of freight
forwarding companies to determine the proper rates.)

Custom import documents should be in Croatian, but documents in English
language are accepted most of the time.

Average length of custom clearance for food products, if all documents
are in order,

is one day.

######## III. Market Sector Structure and Trends

######## 

######## Retail Sector Key to High Value Imports

The internationalization of the Croatian retail food trade started in
1997, with the opening of the supermarket chain (Drogerie Markt). In
eight years time, supermarkets have developed rapidly in Croatia,
leaving the traditional retail system for food far behind. In 2002, the
share of supermarkets in overall food retailing reached 50% according to
a study entitled "Rapid Rise of Supermarkets" put out by the U.S. Agency
for International Development in September 2003. Until recently, small
shops dominated food retailing in Croatia. However, currently most
consumers shop at supermarkets.

Croatia's total imports of Consumer foods jumped from \$508 million in
2002 to \$1 billion in 2006 and are still growing. Increasingly, imports
are being distributed through large supermarkets.

######## Promotion and Marketing Strategies

Television is the food industry's favorite media. Supermarkets also send
flyers by mail and sometimes promote themselves using consumer
participation contests on TV and radio. A media campaign is considered
necessary for the success of any new food product.

######## Tourism Sales

Tourism, although highly seasonal, is an important economic activity in
Croatia. Each year about 7 - 10 million tourists visit Croatia (compared
to Croatia's population of four million). Despite global trends, Croatia
is one of the rare countries that has not recorded a decrease in tourist
income. Tourist turnover is expected to increase further. In 2006,
Croatia's tourism industry recorded 4% more tourists and 3% more over
night stays in comparison to the previous year. In 2006, 11 million
tourists visited Croatia with a total of 53 million overnight stays.

In 2006 foreign tourist's overnights represent 88.7 percent of the total
number of overnights. The majority of visitors come from Germany, Italy,
Slovenia, Austria, Czech Republic, Hungary and Netherlands. Tourists
coming from countries outside of Europe are mostly Americans. Tourist
infrastructure is satisfactory but still developing, particularly in the
main tourist destinations. (See GAINS Report [HR
4012](http://www.fas.usda.gov/scriptsw/AttacheRep/)).

**Internet Sales**

Internet shopping in Croatia is still negligible. Most of the Internet
shopping in Croatia includes the following: travel services, IT
equipment, books, and electrical appliances. Despite this, there are a
few companies providing online sales of retail food products. These
companies are the following:
[www.maxidiskont.hr](http://www.maxidiskont.hr/) (groceries that are
delivered only in Zagreb region),
[www.vivatipartneri.hr](http://www.vivatipartneri.hr/) (wine sales,
however the web business is more for promotional purposes than for
sales), [www.vinoteka.com](http://www.vinoteka.com/) (wine sales),
[www.puljanka.hr](http://www.puljanka.hr/) (groceries delivered in some
parts of Istra ), www.advent.hr (organic food shop from Istra region).

######## IV Best High Value Product Prospects

The consumer food/edible fishery products that offer the best U.S.
export opportunities are as follows:

+-------+--------+----------+------------+------+----------+---------+
| Pr    | Market | 2006     | 5-Yr. Avg. | Im   | Key      | Market  |
| oduct | Size   | Imports  | Annual     | port | Con      | Attract |
| Cat   |        |          | Import     | Ta   | straints | iveness |
| egory |        |          | Growth     | riff | of       | for USA |
|       |        |          |            | Rate | Market   |         |
|       |        |          | (          | 2007 | Dev      |         |
|       |        |          | 2002-2006) |      | elopment |         |
+-------+--------+----------+------------+------+----------+---------+
| Fish  | 47     | \$104.8  | Growth in  | See  | Com      | Demand  |
| & Sea | ,164MT | million  | \$ value : | at:  | petition | and     |
| Food  | in     |          |            | w    | from     | cons    |
| (&    | 2001   | (51,792  | 2002/2003  | ww.c | some     | umption |
| prod  |        | MT)      | -- 9.0%    | arin | E.U.     | should  |
| ucts) |        |          |            | a.hr | seafood  | c       |
|       |        |          | 2003/2004  |      | e        | ontinue |
|       |        |          | -          | [    | xporting | to grow |
|       |        |          |            | ]{.m | co       | along   |
|       |        |          | (-14.6%)   | ark} | untries. | with    |
|       |        |          |            |      |          | tourism |
|       |        |          | 2          |      |          | for the |
|       |        |          | 004/2005 - |      |          | next    |
|       |        |          | 37.1%      |      |          | several |
|       |        |          |            |      |          | years.  |
|       |        |          | 2005/2006  |      |          |         |
|       |        |          | -- 8.1%    |      |          |         |
+-------+--------+----------+------------+------+----------+---------+
| Snack | N/a    | \$112    | Growth in  | See  | Strict   | Growing |
| Foods |        | million  | \$ value : | at:  | biotech  | market. |
|       |        | (38,099  |            | w    | leg      |         |
|       |        | MT)      | 2002/2003  | ww.c | islation |         |
|       |        |          | -- 27.3%   | arin | and      |         |
|       |        |          |            | a.hr | com      |         |
|       |        |          | 2          |      | petition |         |
|       |        |          | 003/2004 - |      | from     |         |
|       |        |          | 19.2%      |      | E.U. and |         |
|       |        |          |            |      | Croatian |         |
|       |        |          | 2          |      | fran     |         |
|       |        |          | 004/2005 - |      | chisees. |         |
|       |        |          | 7.5%       |      |          |         |
|       |        |          |            |      |          |         |
|       |        |          | 2005/2006  |      |          |         |
|       |        |          | -- 15.7%   |      |          |         |
+-------+--------+----------+------------+------+----------+---------+
| Pork  | 1      | \$108.4  | Growth in  | See  | M        | C       |
|       | 10,000 | million  | \$ value : | at:  | andatory | roatian |
|       | MT in  | (35,971  |            | w    | Tri      | meat    |
|       | 200    | MT)      | 2002/2003  | ww.c | chinosis | pro     |
|       | 2/2003 |          | -- 14.4%   | arin | testing. | cessors |
|       |        |          |            | a.hr |          | are     |
|       |        |          | 2          |      | It will  | im      |
|       |        |          | 003/2004 - | [    | be       | porting |
|       |        |          | 45.6%      | ]{.m | a        | sign    |
|       |        |          |            | ark} | bolished | ificant |
|       |        |          | 2          |      | before   | qua     |
|       |        |          | 004/2005 - |      | the end  | ntities |
|       |        |          | 33.0%      |      | of 2007. | of pork |
|       |        |          |            |      |          | because |
|       |        |          | 2005/2006  |      |          | an      |
|       |        |          | --         |      |          | overall |
|       |        |          |            |      |          | deficit |
|       |        |          | (-1.58%)   |      |          | in good |
|       |        |          |            |      |          | quality |
|       |        |          | []{.mark}  |      |          | car     |
|       |        |          |            |      |          | casses. |
+-------+--------+----------+------------+------+----------+---------+
| Pet   | 20     | \$32.6   | Growth in  | See  | Com      | Croatia |
| Food  | ,578MT | million  | \$ value : | at:  | petition | doesn't |
|       | in     | (29,576  |            | w    | from     | have    |
| (Dog  | 2003   | MT)      | 2002/2003  | ww.c | European | pet     |
| & Cat |        |          | -- 21.0%   | arin | co       | food.   |
| Fo    |        |          |            | a.hr | mpanies. | pro     |
| od-re |        |          | 2          |      | and U.S. | duction |
| tail) |        |          | 003/2004 - | [    | fra      | and     |
|       |        |          | 14.1%      | ]{.m | nchisees | usage   |
|       |        |          |            | ark} | in       | of      |
|       |        |          | 2          |      | European | these   |
|       |        |          | 004/2005 - |      | Union.   | p       |
|       |        |          | 18.6%      |      |          | roducts |
|       |        |          |            |      |          | is      |
|       |        |          | 2005/2006  |      |          | e       |
|       |        |          | -- 13.2%   |      |          | xpected |
|       |        |          |            |      |          | to grow |
|       |        |          |            |      |          | with    |
|       |        |          |            |      |          | i       |
|       |        |          |            |      |          | ncrease |
|       |        |          |            |      |          | in      |
|       |        |          |            |      |          | s       |
|       |        |          |            |      |          | tandard |
|       |        |          |            |      |          | of      |
|       |        |          |            |      |          | living. |
+-------+--------+----------+------------+------+----------+---------+
| Wine  | 189,0  | \$18.8   | Growth in  | See  | New wine | Cons    |
|       | 00,000 | million  | \$ value : | at:  | law      | umption |
|       | Liters | (14,456  |            | w    | doesn't  | of      |
|       |        | Liters)  | 2002/2003  | ww.c | require  | quality |
|       | \+     |          | -- 76.4%   | arin | e        | wines   |
|       | 5.944  |          |            | a.hr | xpensive | is      |
|       | MT in  |          | 2          |      | testing  | e       |
|       | 2001   |          | 003/2004 - |      | for      | xpected |
|       |        |          | 40.6%      |      | wines    | to grow |
|       |        |          |            |      | that     | with    |
|       |        |          | 2          |      | come     | s       |
|       |        |          | 004/2005 - |      | from     | tandard |
|       |        |          | 4.0%       |      | c        | of      |
|       |        |          |            |      | ountries | living. |
|       |        |          | 2005/2006  |      | with     |         |
|       |        |          | -- 21.6%   |      | which    |         |
|       |        |          |            |      | Croatia  |         |
|       |        |          |            |      | has free |         |
|       |        |          |            |      | trade    |         |
|       |        |          |            |      | ag       |         |
|       |        |          |            |      | reements |         |
|       |        |          |            |      | and TRQs |         |
|       |        |          |            |      | for wine |         |
|       |        |          |            |      | reci     |         |
|       |        |          |            |      | procity. |         |
+-------+--------+----------+------------+------+----------+---------+
| Tree  | N/a    | \$11.6   | Growth in  | See  | no       | Grading |
| Nuts  |        | million  | \$ value : | at:  |          | and     |
|       |        | (2,203   |            | w    |          | q       |
|       |        | MT)      | 2002/2003  | ww.c |          | uantity |
|       |        |          | -- 19.3%   | arin |          | of      |
|       |        |          |            | a.hr |          | d       |
|       |        |          | 2          |      |          | omestic |
|       |        |          | 003/2004 - | [    |          | pro     |
|       |        |          | 46.8%      | ]{.m |          | duction |
|       |        |          |            | ark} |          | is      |
|       |        |          | 2          |      |          | insuff  |
|       |        |          | 004/2005 - |      |          | icient. |
|       |        |          | 26.7%      |      |          |         |
|       |        |          |            |      |          |         |
|       |        |          | 2005/2006  |      |          |         |
|       |        |          | --         |      |          |         |
|       |        |          |            |      |          |         |
|       |        |          | (-20.0%)   |      |          |         |
+-------+--------+----------+------------+------+----------+---------+
| Rice  | 10,299 | \$7.6    | Growth in  | See  | Transs   | Croatia |
|       | MT in  | million  | \$ value : | at:  | hipments | has no  |
|       | 2003   | (10,924  |            | w    | from     | d       |
|       |        | MT)      | 2002/2003  | ww.c | Europe.  | omestic |
|       |        |          | -- 26.5%   | arin |          | prod    |
|       |        |          |            | a.hr |          | uction. |
|       |        |          | 2          |      |          |         |
|       |        |          | 003/2004 - | [    |          |         |
|       |        |          | 9.8%       | ]{.m |          |         |
|       |        |          |            | ark} |          |         |
|       |        |          | 2          |      |          |         |
|       |        |          | 004/2005 - |      |          |         |
|       |        |          | 10.7%      |      |          |         |
|       |        |          |            |      |          |         |
|       |        |          | 2005/2006  |      |          |         |
|       |        |          | -- 10.1%   |      |          |         |
+-------+--------+----------+------------+------+----------+---------+
| Po    | N/a    | \$10     | Growth in  | See  | U.S.     | Neg     |
| ultry |        | million  | \$ value : | at:  | s        | ligible |
| Meat  |        | (6,119   |            | w    | uppliers | d       |
| only  |        | MT)      | 2002/2003  | ww.c | are      | omestic |
| MDM   |        | --all    | --         | arin | being    | pro     |
|       |        | poultry  |            | a.hr | shut out | duction |
|       |        |          | (-18.0%)   |      | of the   | of MDM. |
|       |        |          |            |      | MDM      |         |
|       |        |          | 2          |      | market   |         |
|       |        |          | 003/2004 - |      | due to   |         |
|       |        |          | 142.7%     |      | E.U.     |         |
|       |        |          |            |      | -        |         |
|       |        |          | 2          |      | -related |         |
|       |        |          | 004/2005 - |      | phyto    |         |
|       |        |          | 60.8%      |      | sanitary |         |
|       |        |          |            |      | restr    |         |
|       |        |          | 2005/2006  |      | ictions. |         |
|       |        |          | --         |      |          |         |
|       |        |          |            |      |          |         |
|       |        |          | (-0.26%)   |      |          |         |
+-------+--------+----------+------------+------+----------+---------+
| Beef  | 55,000 | \$11.5   | Growth in  | See  | Cer      | Croatia |
|       | MT in  | million  | \$ value : | at:  | tificate | has a   |
|       | 2001   | (4,828   |            | w    | of meat  | sh      |
|       |        | MT) --   | []{.mark}  | ww.c | quality  | ortage. |
|       |        | only     |            | arin | must     |         |
|       |        | bovine   | []{.mark}  | a.hr | contain  |         |
|       |        | c        |            |      | s        |         |
|       |        | arcasses | 2002/2003  |      | tatement |         |
|       |        | and      | -- 42.3%   |      | that     |         |
|       |        | bovine   |            |      | cattle   |         |
|       |        | cuts     | 2003/2004  |      | wasn't   |         |
|       |        |          | -- 179.4%  |      | fed with |         |
|       |        |          |            |      | protein  |         |
|       |        |          | 2004/2005  |      | of       |         |
|       |        |          | -- 124.5%  |      | animal   |         |
|       |        |          |            |      | origin.  |         |
|       |        |          | 2005/2006  |      |          |         |
|       |        |          | --         |      |          |         |
|       |        |          |            |      |          |         |
|       |        |          | (-50.2%)   |      |          |         |
+-------+--------+----------+------------+------+----------+---------+

######## V. Key Contacts and Further Information

######## []{.mark}

Andreja Misir

Agricultural Specialist

American Embassy

Agricultural Section

Thomas Jefferson 2

10010 Zagreb

tel. 00385 (0)1 661 2467

fax. 00385 (0)1 665 8950

mob. 00385 (0)91 4552365

e-mail: andreja.misir@usda.gov

http://www.fas.usda.gov

American Embassy

Commercial Section

Thomas Jefferson 2

10010 Zagreb

tel. 00385 (0)1 661 2224

fax. 00385 (0)1 661 2446

e-mail: zagreb.office.box@mail.doc.gov

web page: [www.export.gov/commercialservice]{.underline}

Central Bureau of Statistics

Republic of Croatia

Ilica 3

10000 Zagreb

Croatia

tel. 00385 (0)1 4806154

fax. 00385 (0)1 4806148

e-mail stat.info@dzs.hr

web page: www.dzs.hr

Croatian Chamber of Economy (Commerce)

Central office

Roseveltov trg 2

10000 Zagreb

tel. 00385 (0)1 4561555

fax. 00385 (0)1 4828380

e-mail: hgk.@hgk.hr

web page: www.hgk.hr

Croatian Chamber of Economy (Commerce)

Agriculture, Food Industry and Forestry Department

Roseveltov trg 2

10000 Zagreb

tel. 00385 (0)1 4826066

fax 00385 (0)1 4561545

e-mail: poljoprivreda@hgk.hr

web page: www.hgk.hr

Croatian Chamber of Economy (Commerce)

Tourism and Catering Industry Department

Roseveltov trg 2

10000 Zagreb

tel. 00385 (0)1 4561570

fax. 00385 (0)1 4828499

e-mail: turizam@hgk.hr

web page: www.hgk.hr

Government of Republic of Croatia

Ministry of Agriculture and Forestry

Grada Vukovara 78

10000 Zagreb

tel. 00385(0)1 6106111

fax. 00385 (0)1 6109191

e-mail: office@mps.hr

web page: www.mps.hr

Government of Republic of Croatia

Ministry of Economy

Grada Vukovara 78

10000 Zagreb

tel. 00385(0)1 6106111

fax. 00385 (0)1 6109110

e-mail: info@mingorp.hr

webpage:www.mingo.hr

APPENDIX I

  ---------------------------------------------------- ------------------------ -------------------------
  **[TABLE A: KEY TRADE & DEMOGRAPHIC                  **[YEAR]{.smallcaps}**   **[VALUE]{.smallcaps}**
  INFORMATION]{.smallcaps}**                                                    

  Agricultural Imports From All Countries (\$Mil) / US 2006                     1,764 / 1.2 %\*
  Market Share %                                                                

  Consumer Food Imports From All Countries (\$Mil.) /  2006                     1,046 / 1.3%\*
  US Market Share %                                                             

  Edible Fishery Imports From All Countries (\$Mil) /  2006                     105 / 3.5%\*
  US Market Share %                                                             

  Total Population (Millions) / Annual Growth Rate per 2005                     4.442/-2.1
  1000 Inhabitants                                                              

  Urban population (Millions) / Annual Growth rate (%) 2006                     n.a.

  Number of Major Metropolitan Areas                   2006                     \-

  Size of the Middle Class (Millions) / Growth Rate    2006                     n.a.
  (%)                                                                           

  Per Capita Gross Domestic Product (US Dollars)       2006                     \$ 9,664.1

  Unemployment Rate (%)                                2006                     11.2%\*

  Per capita Food Expenditures (US Dollars)            2005                     \$ 1,326

  Percent of Female Population Employed                2006                     36.1%

  Exchange Rate (US\$1 = X.X local currency)^5/^       2006                     \$1=Kn 5.8392\*\*
  ---------------------------------------------------- ------------------------ -------------------------

\* Source: Global Trade Atlas

\*\* dollar slide from \$1=7.864 in 2002

**[TABLE B.]{.smallcaps} IMPORTS OF AGRICULTURE, FISH & FORESTRY
PRODUCTS**

<table style="width:100%;">
<colgroup>
<col style="width: 1%" />
<col style="width: 37%" />
<col style="width: 1%" />
<col style="width: 0%" />
<col style="width: 5%" />
<col style="width: 1%" />
<col style="width: 0%" />
<col style="width: 5%" />
<col style="width: 1%" />
<col style="width: 5%" />
<col style="width: 1%" />
<col style="width: 0%" />
<col style="width: 1%" />
<col style="width: 4%" />
<col style="width: 1%" />
<col style="width: 4%" />
<col style="width: 1%" />
<col style="width: 4%" />
<col style="width: 1%" />
<col style="width: 1%" />
<col style="width: 0%" />
<col style="width: 4%" />
<col style="width: 1%" />
<col style="width: 5%" />
<col style="width: 1%" />
<col style="width: 5%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="26"><h1 id="croatia-imports-in-millions-of-dollars">Croatia
Imports (In Millions of Dollars)</h1></td>
</tr>
<tr class="even">
<td> </td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td colspan="2"> </td>
<td colspan="8"><strong>Imports from the World</strong></td>
<td> </td>
<td colspan="7"><strong>Imports from the U.S.</strong></td>
<td> </td>
<td colspan="7"><strong>U.S Market Share</strong></td>
</tr>
<tr class="even">
<td colspan="2"><strong> </strong></td>
<td colspan="3"><strong>2002</strong></td>
<td colspan="3"><strong>2003</strong></td>
<td colspan="2"><strong>2004</strong></td>
<td> </td>
<td colspan="3"><strong>2002</strong></td>
<td colspan="2"><strong>2003</strong></td>
<td colspan="2"><strong>2004</strong></td>
<td> </td>
<td colspan="3"><strong>2002</strong></td>
<td colspan="2"><strong>2003</strong></td>
<td colspan="2"><strong>2004</strong></td>
</tr>
<tr class="odd">
<td colspan="26"></td>
</tr>
<tr class="even">
<td colspan="2"><p id="consumer-oriented-agricultural-total"
class="heading">CONSUMER-ORIENTED AGRICULTURAL TOTAL</p></td>
<td> </td>
<td colspan="2">580</td>
<td> </td>
<td colspan="2">748</td>
<td> </td>
<td>883</td>
<td colspan="2"> </td>
<td> </td>
<td>10</td>
<td> </td>
<td>13</td>
<td> </td>
<td>16</td>
<td> </td>
<td> </td>
<td colspan="2">2%</td>
<td> </td>
<td>2%</td>
<td> </td>
<td>2%</td>
</tr>
<tr class="odd">
<td> </td>
<td><strong>Snack Foods (Excl. Nuts)</strong></td>
<td> </td>
<td colspan="2">60</td>
<td> </td>
<td colspan="2">76</td>
<td> </td>
<td>90</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td> </td>
<td colspan="2">0.91%</td>
<td> </td>
<td>0.21%</td>
<td> </td>
<td>0.53%</td>
</tr>
<tr class="even">
<td> </td>
<td><strong>Breakfast Cereals &amp; Pancake Mix</strong></td>
<td> </td>
<td colspan="2">5</td>
<td> </td>
<td colspan="2">8</td>
<td> </td>
<td>11</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td> </td>
<td colspan="2">0.27%</td>
<td> </td>
<td>0.13%</td>
<td> </td>
<td>0.06%</td>
</tr>
<tr class="odd">
<td> </td>
<td><strong>Red Meats, Fresh/Chilled/Frozen</strong></td>
<td> </td>
<td colspan="2">47</td>
<td> </td>
<td colspan="2">55</td>
<td> </td>
<td>88</td>
<td colspan="2"> </td>
<td> </td>
<td>0</td>
<td> </td>
<td>0</td>
<td> </td>
<td>0</td>
<td> </td>
<td> </td>
<td colspan="2">0%</td>
<td> </td>
<td>0%</td>
<td> </td>
<td>0%</td>
</tr>
<tr class="even">
<td> </td>
<td><strong>Red Meats, Prepared/Preserved</strong></td>
<td> </td>
<td colspan="2">22</td>
<td> </td>
<td colspan="2">27</td>
<td> </td>
<td>32</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>0</td>
<td> </td>
<td>1</td>
<td> </td>
<td> </td>
<td colspan="2">0.33%</td>
<td> </td>
<td>0%</td>
<td> </td>
<td>0.15%</td>
</tr>
<tr class="odd">
<td> </td>
<td><strong>Poultry Meat</strong></td>
<td> </td>
<td colspan="2">3</td>
<td> </td>
<td colspan="2">3</td>
<td> </td>
<td>6</td>
<td colspan="2"> </td>
<td> </td>
<td>0</td>
<td> </td>
<td>0</td>
<td> </td>
<td>0</td>
<td> </td>
<td> </td>
<td colspan="2">0%</td>
<td> </td>
<td>0%</td>
<td> </td>
<td>0%</td>
</tr>
<tr class="even">
<td> </td>
<td><strong>Dairy Products (Excl. Cheese)</strong></td>
<td> </td>
<td colspan="2">36</td>
<td> </td>
<td colspan="2">37</td>
<td> </td>
<td>46</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>0</td>
<td> </td>
<td>0</td>
<td> </td>
<td> </td>
<td colspan="2">0.06%</td>
<td> </td>
<td>0%</td>
<td> </td>
<td>0%</td>
</tr>
<tr class="odd">
<td> </td>
<td><strong>Cheese</strong></td>
<td> </td>
<td colspan="2">25</td>
<td> </td>
<td colspan="2">36</td>
<td> </td>
<td>45</td>
<td colspan="2"> </td>
<td> </td>
<td>0</td>
<td> </td>
<td>0</td>
<td> </td>
<td>0</td>
<td> </td>
<td> </td>
<td colspan="2">0%</td>
<td> </td>
<td>0%</td>
<td> </td>
<td>0%</td>
</tr>
<tr class="even">
<td> </td>
<td><strong>Eggs &amp; Products</strong></td>
<td> </td>
<td colspan="2">4</td>
<td> </td>
<td colspan="2">5</td>
<td> </td>
<td>5</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td> </td>
<td colspan="2">4%</td>
<td> </td>
<td>0.02%</td>
<td> </td>
<td>0.08%</td>
</tr>
<tr class="odd">
<td> </td>
<td><strong>Fresh Fruit</strong></td>
<td> </td>
<td colspan="2">64</td>
<td> </td>
<td colspan="2">83</td>
<td> </td>
<td>90</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td> </td>
<td colspan="2">0.00%</td>
<td> </td>
<td>0.00%</td>
<td> </td>
<td>0.04%</td>
</tr>
<tr class="even">
<td> </td>
<td><strong>Fresh Vegetables</strong></td>
<td> </td>
<td colspan="2">21</td>
<td> </td>
<td colspan="2">45</td>
<td> </td>
<td>45</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td> </td>
<td colspan="2">0.02%</td>
<td> </td>
<td>0.30%</td>
<td> </td>
<td>0.12%</td>
</tr>
<tr class="odd">
<td> </td>
<td><strong>Processed Fruit &amp; Vegetables</strong></td>
<td> </td>
<td colspan="2">59</td>
<td> </td>
<td colspan="2">76</td>
<td> </td>
<td>85</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td> </td>
<td colspan="2">0.88%</td>
<td> </td>
<td>0.56%</td>
<td> </td>
<td>0.67%</td>
</tr>
<tr class="even">
<td> </td>
<td><strong>Fruit &amp; Vegetable Juices</strong></td>
<td> </td>
<td colspan="2">11</td>
<td> </td>
<td colspan="2">14</td>
<td> </td>
<td>15</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td> </td>
<td colspan="2">0.07%</td>
<td> </td>
<td>4%</td>
<td> </td>
<td>7%</td>
</tr>
<tr class="odd">
<td> </td>
<td><strong>Tree Nuts</strong></td>
<td> </td>
<td colspan="2">7</td>
<td> </td>
<td colspan="2">8</td>
<td> </td>
<td>11</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>2</td>
<td> </td>
<td>3</td>
<td> </td>
<td> </td>
<td colspan="2">15%</td>
<td> </td>
<td>20%</td>
<td> </td>
<td>22%</td>
</tr>
<tr class="even">
<td> </td>
<td><strong>Wine &amp; Beer</strong></td>
<td> </td>
<td colspan="2">21</td>
<td> </td>
<td colspan="2">31</td>
<td> </td>
<td>36</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td> </td>
<td colspan="2">0.15%</td>
<td> </td>
<td>0.19%</td>
<td> </td>
<td>0.13%</td>
</tr>
<tr class="odd">
<td> </td>
<td><strong>Nursery Products &amp; Cut Flowers</strong></td>
<td> </td>
<td colspan="2">18</td>
<td> </td>
<td colspan="2">24</td>
<td> </td>
<td>29</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td> </td>
<td colspan="2">0.04%</td>
<td> </td>
<td>0.05%</td>
<td> </td>
<td>0.30%</td>
</tr>
<tr class="even">
<td> </td>
<td><strong>Pet Foods (Dog &amp; Cat Food)</strong></td>
<td> </td>
<td colspan="2">18</td>
<td> </td>
<td colspan="2">21</td>
<td> </td>
<td>24</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td> </td>
<td colspan="2">3%</td>
<td> </td>
<td>3%</td>
<td> </td>
<td>3%</td>
</tr>
<tr class="odd">
<td> </td>
<td><strong>Other Consumer-Oriented Products</strong></td>
<td> </td>
<td colspan="2">162</td>
<td> </td>
<td colspan="2">200</td>
<td> </td>
<td>223</td>
<td colspan="2"> </td>
<td> </td>
<td>7</td>
<td> </td>
<td>9</td>
<td> </td>
<td>10</td>
<td> </td>
<td> </td>
<td colspan="2">5%</td>
<td> </td>
<td>5%</td>
<td> </td>
<td>5%</td>
</tr>
<tr class="even">
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td colspan="2"><strong>FISH &amp; SEAFOOD PRODUCTS</strong></td>
<td> </td>
<td colspan="2">76</td>
<td> </td>
<td colspan="2">82</td>
<td> </td>
<td>70</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>2</td>
<td> </td>
<td>2</td>
<td> </td>
<td> </td>
<td colspan="2">1%</td>
<td> </td>
<td>2%</td>
<td> </td>
<td>2%</td>
</tr>
<tr class="even">
<td> </td>
<td><strong>Salmon</strong></td>
<td> </td>
<td colspan="2">1</td>
<td> </td>
<td colspan="2">1</td>
<td> </td>
<td>1</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>0</td>
<td> </td>
<td>1</td>
<td> </td>
<td> </td>
<td colspan="2">2%</td>
<td> </td>
<td>0%</td>
<td> </td>
<td>2%</td>
</tr>
<tr class="odd">
<td> </td>
<td><strong>Surimi</strong></td>
<td> </td>
<td colspan="2">1</td>
<td> </td>
<td colspan="2">1</td>
<td> </td>
<td>1</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>0</td>
<td> </td>
<td>0</td>
<td> </td>
<td> </td>
<td colspan="2">2%</td>
<td> </td>
<td>0%</td>
<td> </td>
<td>0%</td>
</tr>
<tr class="even">
<td> </td>
<td><strong>Crustaceans</strong></td>
<td> </td>
<td colspan="2">4</td>
<td> </td>
<td colspan="2">4</td>
<td> </td>
<td>4</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td> </td>
<td colspan="2">0.16%</td>
<td> </td>
<td>0.46%</td>
<td> </td>
<td>2%</td>
</tr>
<tr class="odd">
<td> </td>
<td><strong>Groundfish &amp; Flatfish</strong></td>
<td> </td>
<td colspan="2">8</td>
<td> </td>
<td colspan="2">8</td>
<td> </td>
<td>10</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>0</td>
<td> </td>
<td>1</td>
<td> </td>
<td> </td>
<td colspan="2">0.23%</td>
<td> </td>
<td>0%</td>
<td> </td>
<td>0.08%</td>
</tr>
<tr class="even">
<td> </td>
<td><strong>Molluscs</strong></td>
<td> </td>
<td colspan="2">10</td>
<td> </td>
<td colspan="2">15</td>
<td> </td>
<td>19</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td>2</td>
<td> </td>
<td> </td>
<td colspan="2">9%</td>
<td> </td>
<td>6%</td>
<td> </td>
<td>9%</td>
</tr>
<tr class="odd">
<td> </td>
<td><strong>Other Fishery Products</strong></td>
<td> </td>
<td colspan="2">53</td>
<td> </td>
<td colspan="2">54</td>
<td> </td>
<td>35</td>
<td colspan="2"> </td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td>1</td>
<td> </td>
<td> </td>
<td colspan="2">0.27%</td>
<td> </td>
<td>1%</td>
<td> </td>
<td>0.04%</td>
</tr>
<tr class="even">
<td> </td>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td colspan="2"><strong>AGRICULTURAL PRODUCTS TOTAL</strong></td>
<td> </td>
<td colspan="2">955</td>
<td> </td>
<td colspan="2">1,181</td>
<td> </td>
<td>1,373</td>
<td colspan="2"> </td>
<td> </td>
<td>22</td>
<td> </td>
<td>21</td>
<td> </td>
<td>27</td>
<td> </td>
<td> </td>
<td colspan="2">2%</td>
<td> </td>
<td>2%</td>
<td> </td>
<td>2%</td>
</tr>
<tr class="even">
<td colspan="2"><strong>AGRICULTURAL, FISH &amp; FORESTRY
TOTAL</strong></td>
<td> </td>
<td colspan="2">1,183</td>
<td> </td>
<td colspan="2">1,475</td>
<td> </td>
<td>1,686</td>
<td colspan="2"> </td>
<td> </td>
<td>24</td>
<td> </td>
<td>23</td>
<td> </td>
<td>29</td>
<td> </td>
<td> </td>
<td colspan="2">2%</td>
<td> </td>
<td>2%</td>
<td> </td>
<td>2%</td>
</tr>
<tr class="odd">
<td colspan="26"></td>
</tr>
</tbody>
</table>

  -----------------------------------------------------------------------
  ***NA - Data not available (not reported)       Data: Harmonized Tariff
  Schedule (HS 6 Digit)***

  ***Source: FAS\' Global Agricultural Trade System using data from the
  United Nations Statistical Office***
  -----------------------------------------------------------------------

**[TABLE C.]{.smallcaps} TOP 15 SUPPLIERS OF CONSUMER FOODS & EDIBLE
FISHERY PRODUCTS**

# 

#### CONSUMER-ORIENTED AGRICULTURAL TOTAL - 400 

  -------------------------------- ------------ ------------ ------------
  **Reporting Country:\            **Import**                
  Croatia\                                                   
  Top 15 Ranking**                                           

                                   **2002**     **2003**     **2004**

                                   **1000\$**   **1000\$**   **1000\$**

  **Italy**                        88,657       115,276      128,129

  **Germany**                      71,246       91,587       106,906

  **Austria**                      57,387       72,589       88,933

  **Areas NES**                    1            0            79,488

  **Netherlands**                  41,561       52,929       65,915

  **Hungary**                      52,565       50,959       53,785

  **Poland**                       23,292       29,295       38,017

  **Spain**                        17,548       26,777       36,058

  **Bosnia-Hercegovina**           16,158       23,196       30,231

  **Czech Republic**               10,746       16,862       21,181

  **Denmark**                      11,311       19,487       19,959

  **France**                       10,006       12,918       17,908

  **Ecuador**                      13,336       15,606       17,425

  **United States**                10,267       12,897       15,917

  **Belgium**                      9,260        11,299       14,391

  **Other**                        146,942      196,631      149,002

  **World**                        580,355      748,357      883,278
  -------------------------------- ------------ ------------ ------------

***Source: FAS\' Global Agricultural Trade System using data from the
United Nations Statistical Office***

FISH & SEAFOOD PRODUCTS - 700

  ------------------------------------------- ------------ ------------ ------------
  **Reporting Country:\                       **Import**                
  Croatia\                                                              
  Top 15 Ranking**                                                      

                                              **2002**     **2003**     **2004**

                                              **1000\$**   **1000\$**   **1000\$**

  **Spain**                                   12,480       19,108       16,766

  **Italy**                                   8,203        6,345        7,185

  **Argentina**                               3,438        2,849        4,537

  **Denmark**                                 8,387        7,829        4,307

  **Sweden**                                  3,855        3,013        4,207

  **Thailand**                                2,644        2,899        4,091

  **Norway**                                  3,980        2,986        3,861

  **Falkland Islands (Islas Malvinas)**       208          2,787        3,139

  **France**                                  241          9,887        2,030

  **Ireland**                                 2,983        1,809        1,761

  **United Kingdom**                          553          1,206        1,737

  **United States**                           1,047        1,534        1,724

  **Iceland**                                 1,180        1,455        1,631

  **Areas NES**                               0            0            1,559

  **Netherlands**                             3,692        9,448        1,305

  **Other**                                   23,000       8,757        9,927

  **World**                                   75,897       81,926       69,765
  ------------------------------------------- ------------ ------------ ------------

***Source: FAS\' Global Agricultural Trade System using data from the
United Nations Statistical Office***