If negative trends in agriculture continue, Croatia will lose control over its own food security, the Croatian Employers' Association (HUP) has warned, emphasizing the need to recognize the strategic importance of agriculture.

The gross value added (GVA) in agriculture, forestry, and fisheries grew by just 0.4% annually in the first nine months of 2024, they noted, which is eight times slower than the overall GVA growth of the economy. This marks the fourth consecutive year in which agriculture lags behind overall economic activity.

Real agricultural income fell by 6.3% in 2024 to €1.6 billion, while the value of agricultural production declined by 0.3% to €28 billion.

The share of exports in agricultural company revenues dropped to 14.6%, the lowest level since 2019, while the trade deficit in food and live animals surged to a high of €2.2 billion.

As a result, Croatia is increasingly exposed to rising import prices of food items such as milk, meat, oil, coffee, and cocoa.

"A total of €8.3 billion in subsidies has been paid into agriculture from 2013 to 2025, but if negative trends persist, Croatia will not have control over its own food security," states the latest HUP publication Focus of the Week, authored by Josipa Filaković and Hrvoje Stojić.

HUP’s Food Industry and Agriculture Association has previously warned of several structural issues that limit the growth of domestic food production.

Key challenges include small, fragmented, and unorganized land plots, unused state-owned land, administrative barriers in leasing and allocating land, and a scoring system that does not favor primary producers.