Meat Imports Rise as Domestic Production Struggles to Meet Market Demands

In the past two years, there has been a turnaround in the domestic meat processing market. Although a continuous foreign trade surplus has been recorded since Croatia joined the EU, by 2024, exports will no longer cover imports, and our production is less sufficient than before.

The situation is not good in the meat processing industry, which was also discussed at today’s 2nd Conference on the Meat Industry held at the Croatian Chamber of Economy (HGK). In addition to low self-sufficiency and a shortage of qualified labor, the livestock sector and domestic meat industry are facing strong competitive pressure from large global producers from third countries and increasingly frequent outbreaks of animal diseases.

Reasons for the decline in self-sufficiency mentioned at the conference include increased meat consumption in Croatia and a decline in domestic production, which has led to increased imports. The number of livestock has also significantly decreased by 58%, particularly breeding stock by 48%, while poultry production has seen an 18% increase. Since Croatia joined the EU, self-sufficiency in beef has fallen from 90% to 58%, in pork from 67% to 50%, and in poultry from 81% to 73%. Overall, self-sufficiency in meat production is at 63%.

Key Productivity

Croatia imports over 200,000 tons of meat and slaughter products annually, and last year recorded a record foreign trade deficit of over 625 million euros. Negative trends continue in the first seven months of this year. While a foreign trade surplus in meat products has been continuously recorded since Croatia joined the EU, in 2024, there has been a turnaround – exports no longer cover imports, primarily due to increased domestic meat consumption, which amounts to 87 kilograms per capita annually, placing Croatia 6th in the EU. When looking at the type of meat, pork consumption predominates, accounting for over 50%.

At the conference, as reported by HGK, discussions focused on strengthening the competitiveness of the domestic meat industry. As stated by Dragan Kovačević, Vice President of HGK for Agriculture and Tourism, it is crucial in the next period to increase production to reduce import dependence, which significantly generates price increases in retail and to cover the growing consumption of meat and meat products with domestic production.

However, it is even more important to enhance the competitiveness of producers alongside increasing production, as the recorded decline in production clearly shows that increasing production would be easier if domestic processors were more productive. This is not supported by the fact that, as noted, the productivity of the Croatian meat industry is only 56% of the EU average, which is indeed too low for us to be satisfied. One possible solution is the government’s development program worth 740 million euros, along with corresponding action plans until 2027, as was heard at the conference, which was adopted in June this year, to strengthen agriculture and increase self-sufficiency and create a sustainable framework for the development of the livestock sectors.

– These programs are a crucial step towards strengthening domestic producers, increasing production capacities, and reducing dependence on imports, especially during periods of global disruptions in the food market. We believe that the association of agricultural producers into producer and sector organizations is of exceptional importance for strengthening their market position. Through a joint approach, promotion, and informational activities, we create more competitive conditions in the domestic and international markets – said Zdravko Tušek, State Secretary in the Ministry of Agriculture, Forestry, and Water Management.

Leader in Innovations

Although, as we have already mentioned, the productivity of the Croatian meat industry is only 56% of the EU average, it remains the most productive segment of the processing industry, including food. This may somewhat satisfy meat processors, but it seems to reflect more on the overall processing industry in the country. However, despite the disappointing results in the face of foreign competition, the domestic meat industry has a good foundation for better competitiveness.

– The Croatian meat industry is a leader in innovations, digitalization, and automation of processes, as well as innovative reformulations of meat product recipes with reduced levels of salt, fats, additives, and allergens. In addition to the regional market, where it is recognized for quality brands, the Croatian meat industry successfully competes in the most demanding EU markets such as Austria, Germany, and Italy – emphasized Kovačević.

The conference discussed research and development as well as new trends in the domestic meat industry, which is one of the key segments of the food processing sector as it creates high added value through the processing of raw meat into final products.

– A developed meat industry directly stimulates the development of livestock production, as well as employment, as it ensures a stable market for domestic breeders, thereby increasing the security of purchases and the stability of income for agricultural households. This strengthens self-sufficiency in meat production and increases the competitiveness of the domestic livestock sector. Food safety and quality are extremely important to us, so we continuously invest in the excellence of our products – said Mato Božić, a member of the Management Board of Žito Group.

A key factor in the longevity of the Koke meat industry, said its chief manager Valentina Kancijan, as well as its success in contributing to and preserving the quality and safety of meat, is integrated poultry production that encompasses all processes.

Further Growth of Production and Consumption

– From breeding parent flocks and producing hatching eggs, hatcheries, broiler fattening, producing animal feed, our own veterinary clinics and laboratories, to finished poultry meat products and their distribution to store shelves across Croatia within just 24 hours. Such organization allows for a high degree of quality and safety control and significantly reduces risks at all stages of the production chain – said Kancijan.

Despite various pressures, competition from alternative protein sources, outbreaks of animal diseases, tightening animal welfare standards, and demands for reducing greenhouse gas emissions, meat production and consumption grew last year. Health recommendations for reducing meat consumption led to a change in the structure of meat consumption – the share of poultry is increasing, while the consumption of red meat from cattle, pigs, and sheep is decreasing.

As stated at the end of the 2nd Conference on the Meat Industry held at HGK, further growth in meat production and consumption is expected, primarily due to the implementation of innovations in breeding techniques, better herd and flock management, and increased weight and share of meat units at slaughter. Such trends will result in higher productivity and further reductions in greenhouse gas emissions.