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HPK: All sectors of Croatian agriculture are under strong pressure from unfair import competition

Mladen Jakopović
Mladen Jakopović

All sectors of Croatian agriculture are under strong pressure from unfair competition, and although it was expected that the Croatian government would start to shift and work more on increasing self-sufficiency and controlling imports due to the coronavirus crisis, this has not happened. This was stated by the Croatian Chamber of Agriculture (HPK), noting that the situation on the ground and in trade shows that the Croatian market is flooded with imported goods at dumping prices. Therefore, it is important, they believe in HPK, to take urgent action by the relevant institutions and to strictly apply all provisions of the Law on Unfair Trading Practices, as well as the Trade Act, and to punish those found to be offering goods below production prices. Below, we present the statement in full.

It is important to determine at what prices imported goods enter the Croatian market, and what are the reasons that Croatian producers cannot sell their products. It is also necessary to initiate actions and activate legal regulations on labeling and marking goods, so that consumers can clearly see what is domestic and what comes from imports, the conclusion of the 27th session of the Management Board of the Croatian Chamber of Agriculture.

– We demand that the Ministry of Agriculture issue a strong appeal to other relevant institutions and inspections to increase market controls and that a working group be formed to prepare a price analysis of the market from which large quantities of goods come, especially milk, meat, fruit, vegetables, and bakery products, to determine whether the prices at which imported goods are offered in Croatian trade are lower than production prices in the countries from which they are imported. It is especially important to create an urgent intervention measure that will help producers maintain their production and manage to compete somewhat with the excessive import of goods, or market surpluses that have flooded the Croatian market, even though we all swore by domestic production during the coronavirus crisis. The state’s reaction has been absent, and now that we have a stable government we expect all actors in politics and institutions to understand that the crisis of Croatian agriculture is at its peak and that urgent action is needed. In this way, Croatian agriculture is threatened with further collapse – said HPK President Mladen Jakopović.

Members of the Management Board analyzed the situation by sectors and emphasized that Croatia has EU laws and regulations, but they are dead letters on paper because they are not applied and there is no adequate response from inspections and the entire system at the moment when Croatian production comes to the market. It is necessary to conduct price analyses in the market and to include transport, trade margins, and all other costs in the producer prices of imported goods, and then determine whether it is dumping and how to respond to it in an adequate manner as other countries that have regulated their markets and take care of their production do. It is incredible that the purchase price of milk in Poland and Croatia is almost the same – from 2.2 to 2.25 kuna per liter, while imported milk on the shelves of retail chains is sold at prices that domestic milk cannot compete with. The same is true for fruit and vegetables, especially meat and bakery products.