The Deputy Prime Minister and Minister of Agriculture, Forestry and Water Management David Vlajčić visited the factory in Kanfanar, which forms the foundation of BAT’s vertically integrated value chain that connects the agricultural production of tobacco leaf in Podravina and Slavonia with one of the most modern factories within the BAT group, offering the widest range of products. Such a vertically integrated chain in the tobacco industry, as supported by BAT in Croatia, is unique in the European Union.
British American Tobacco (BAT) has invested over €700 million in Croatia since the acquisition of TDR in 2015, primarily in the factory in Kanfanar and in strengthening the competitiveness and sustainability of agricultural production. The agricultural production supported by BAT is organized through Hrvatske duhane, which purchases and processes tobacco from about 250 tobacco producers across four counties in Podravina and Slavonia. BAT has also launched a logistics hub in Pitomača, which collects tobacco from as many as 26 countries and supplies factories in Poland, Germany, and Hungary from Croatia.
Tobacco production is one of the best-organized agricultural productions in Croatia, where producers have guaranteed purchase of the entire production, secured financial monitoring of the entire production, strong support for investments in increasing productivity, as well as daily support from agronomists in the field. Tobacco is one of the few domestic agricultural crops whose purchase price has been continuously rising for several years. Tobacco production is also characterized by a high irrigation rate, with nearly 30 percent of the area under tobacco, which is 12 times higher than the national average.
The result of such a favorable production environment is that tobacco is the only agricultural crop in which Croatia achieves significant production within the EU, specifically – Croatia produces 6 percent of the total tobacco production in the EU. Additionally, tobacco production attracts young farmers, with the average age of tobacco producers being below 45 years, which is over 10 years below the average in domestic agriculture.
– Today, a working meeting was held with representatives of the company that has organized tobacco production in the fields of Podravina and Slavonia for over 60 years, and today operates within the tobacco sector of the group with TDR, now part of BAT. The meeting confirmed the importance of tobacco as a strategic agricultural crop, especially for the Virovitica-Podravina County, where as much as 80 percent of total domestic production is achieved. Tobacco is grown on soils that are not suitable for most other crops, thus ensuring the sustainability of agriculture in demanding agro-ecological conditions. In 2024, 6,182 tons of tobacco were produced on a total of 2,184 hectares, with an average yield of 2.2 t/ha, and 353 family farms are engaged in this production, thus tobacco retains an important role in preserving rural demographics. Tobacco production is one of the labor-intensive crops that is still profitable, with guaranteed purchase and payment. Some producers are investing in harvesting mechanization, but human labor remains irreplaceable in key phases of the production cycle. It is particularly emphasized that tobacco is one of the most important agricultural export products of Croatia. In the first six months of 2025, 7,000 tons of tobacco were exported, ranking just behind corn and fish in export value. The Ministry of Agriculture, Forestry and Water Management remains committed to preserving and developing tobacco production, recognizing its economic, social, and export value. In cooperation with producers and the industry, we will continue to seek solutions to challenges in the sector, especially in the labor segment and modernization of harvesting – stated David Vlajčić, Deputy Prime Minister and Minister of Agriculture, Forestry and Water Management.
