Croatia Exports Cheap Wheat, Imports Costly Bread, Becoming 'Raw Material Colony'

Croatia exports cheap raw wheat while importing expensive bread, a situation described as becoming a "raw material colony." The head of the Croatian Chamber of Agriculture (HPK), Željko Mihelić, stated that Croatian grain production is not and cannot be profitable on the global market. Farmers continue to grow wheat and corn primarily because subsidies are linked to land area rather than yield or quality, making it more practical than cultivating crops like vegetables on smaller plots.

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We cannot constantly blame others and forever point fingers at grain buyers, ministers, or the Common Agricultural Policy (CAP) of the European Union. Croatian grain production is simply not profitable on the global market, nor can it be. Due to structural flaws, we export cheap raw materials and import expensive finished products, and today we are in a position to be a raw material colony.

Despite harvesting over a million tons of wheat, far exceeding domestic needs of 300,000 to 350,000 tons, and planting 10% more land this year, the purchase price remains significantly lower than on European exchanges. Buyers cite supply and demand, while low Croatian productivity also contributes to the issue. Vlado Čondić Galiničić, president of the HGK Agriculture Association, noted that with average yields of 6.5 tons per hectare, farmers are at best breaking even or losing money. Production costs exceed 1,300 euros per hectare, meaning profitability requires yields above 8 tons per hectare, a target difficult to achieve given rising fuel and labor expenses.

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When subsidies are included in the purchase price, everyone with an average yield of around 6.5 t/ha is either breaking even or at a loss. Costs, further burdened by rising fuel and labor prices, exceed 1,300 euros per hectare, meaning there is no profit below 8 tons/ha.