The Sale of Rabo Proves That Hungarian Investors Want to Invest Strongly in Croatian Agriculture

The Croatian company Rabo, the largest domestic producer and exporter of fresh apples, has become a new member of the Hungarian group Mészáros, one of the most significant European agricultural producers, owned by Lőrinc Mészáros. The value of the transaction has not been disclosed, but it has been announced that the acquisition will enable further development of the company from Kneževi Vinogradi, investments and employment, as well as strengthening the local economy.

That Rabo is one of the best examples of fruit production in Croatia is confirmed by Zvjezdana Blažić, a consultant for the food industry and agriculture.

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Zvjezdana Blažić

foto Ratko Mavar

—– It has often been highlighted as a company that, despite all the conditions in which Croatian agricultural producers operate, has raised its business to a higher production, technological, and market level, thus occupying one of the leading positions in apple production in the domestic market, and has managed to place its products in more demanding foreign markets. In addition to production capacities, it also possesses modern logistics capacities that allow for the placement of their products throughout the year when prices are significantly higher than in the harvest season – explains Blažić, but emphasizes that Croatian fruit production does not have many such capacities, and fruit production has been declining for years.

Less Production and Orchards

– From 2018 to 2022, fruit production fell from 180 thousand tons to 120 thousand tons. There is particularly a decline in apple production where, in the best production years, we had production above 100 thousand tons, mostly around 90 thousand tons, but in recent years production has fallen below 50 thousand tons. Our self-sufficiency in apple production is around 70 percent – says Blažić, adding that the areas under apple orchards are also decreasing.

– Before entering the European Union, we had over 6000 hectares of apple orchards, and now we are at 4000 hectares. The structure is dominated by very small orchards, so almost a third of the orchards are smaller than one hectare – says Blažić.

However, the company Rabo owns almost one hundred hectares of orchards, making it the second largest orchard in Croatia.

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Voćnjaci tvrtke Rabo

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– If the owner of such a large fruit production with state-of-the-art equipment and an established market position has decided to sell his company, then it is clear that the business of fruit production, especially apples, is becoming increasingly demanding. Risks, especially climatic conditions, are changing rapidly, and market conditions are not simple at all – says Blažić.

Investor Ambitions

As Mészáros himself stated, the goal of the group is for Rabo, while preserving its brand and market position, to ‘represent a strong platform for future growth and investments in this specific sector’, which the Mészáros group could implement in the upcoming period.

– By entering the large system of the Mészáros Group, the former owner of Rabo likely expects the possibility of further development, investment, and ensuring more stable business conditions. And the Mészáros Group is strengthening its presence in the Osijek-Baranja County with this acquisition. We have been aware for years that Hungarian investors have ambitions to invest strongly in Croatian agriculture, especially Slavonia, and particularly Baranja, and this acquisition is one of the first steps in realizing that ambition – concludes Blažić.