Croatia Faces Up to 40% Food Price Hike Next Year Due to Drought, Official Warns

Croatia's agricultural sector is bracing for significant food price increases, potentially reaching up to 40% next year, according to Tatjana Radić, an advisor to the Agriculture Minister. Radić stated that current expert discussions point to a 20% to 30% rise, with the possibility of it climbing higher.

“

Estimates are very difficult to make, but in our discussions, a growth of 20 to 30 percent is mentioned, and it could reach 40 percent.

These projections stem from the severe and prolonged drought impacting the country. Radić explained that previous price dampening measures, including state intervention and imports, are no longer sufficient. She highlighted that the consequences of this year's unprecedented drought will likely be felt most strongly in the coming year.

“

We had, on one hand, price dampening at the state level, surpluses came to us from various sides and imported goods that lowered our prices. Now we can see a trend of slight growth. What we will definitely feel next year is the consequence of this drought, which has never been at this level.

In response to these challenges, the Croatian Agricultural Chamber has proposed creating a national fund. This fund would support adaptation to climate change and enhance the competitiveness of domestic agriculture. Radić believes such a fund is crucial, viewing additional investments in agriculture as investments in the security of domestic production. She suggested a model where farmers unite and the state contributes an additional 20% of funds.

“

Additional investments in agriculture and our security are always welcome.

Radić acknowledged that climate change significantly affects agricultural production across Europe, not just in Croatia. She noted that while various adaptation practices are being implemented continent-wide, the rapid pace of these changes is difficult to keep up with. She also touched on consumer behavior, suggesting that consumer choices play a role in import levels, even with lower purchasing power.

“

I wouldn't say we are lagging behind. The whole of Europe is currently in crisis regarding climate change. We are all applying different practices and using different interventions to adapt to these changes. However, the speed of these changes is much greater than can currently be followed.