Agriculture, Fisheries, and Food Processing in Croatia’s Food and Bio-Economy

Shifting consumer demand and accelerating climate change will further shape the agri-food sector in Croatia in the next decade. Consumers in high value markets in the EU and beyond are shifting their expenditures towards safe, healthy, sustainable,...

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Bibliographic Details
Main Author: World Bank
Format: Policy Note
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/undefined/146511635958812014/Agriculture-Fisheries-and-Food-Processing-in-Croatia-s-Food-and-Bio-Economy-National-Development-Strategy-Croatia-2030-Policy-Note
http://hdl.handle.net/10986/36559
Description
Summary:Shifting consumer demand and accelerating climate change will further shape the agri-food sector in Croatia in the next decade. Consumers in high value markets in the EU and beyond are shifting their expenditures towards safe, healthy, sustainable, and convenient products. Recent EU market projections further confirm ongoing shifts in consumer demand. Agri-food producers and processors must increasingly differentiate and personalize their product offerings in response to shifting consumer demand and stricter regulations. The modern retail sector has been consolidating to better coordinate supply chains, comply with strict legal and regulatory requirements, and meet diverse consumer demands. Croatia has experienced a ‘retail revolution’ as food retailing shifts from small shops and grocery stores to supermarkets. Climate change impacts and risk will have a profound impact on the agricultural sector. Extreme weather events in Croatia such as droughts and hail have resulted in losses generated by the agriculture, forestry and fisheries sector. Climate change impacts are expected to appear through a variety of vectors in the fisheries sector. For capture fisheries and marine aquaculture, climate change impacts primarily manifest themselves in rises in sea-levels, increases in sea temperature, acidification, changes in ocean current patterns, and extreme weather events. Leveraging the agri-food sector’s multiple functions and cross-sector linkages could be a powerful driver for diversified rural and coastal economies. The linkages between the agri-food and tourism sectors are particularly relevant in the context of Croatia given that the tourism sector contributes significantly to the national economy. Sustainable and circular bio-economies offer numerous diversification opportunities to rural and coastal areas in Croatia. Future policies should aim to accelerate the structural transformation of Croatia's agri-food sector.