Croatia gives farm-processing subsidy priority to users of domestic raw materials
Croatia will change the scoring rules for agricultural-processing support so that processors using at least 50% domestic raw materials receive priority. The measure covers meat, milk, grain and other inputs from Croatian farms and is intended to direct EU-backed investment more closely toward domestic production.
Domestic sourcing added to support criteria
Croatia’s Ministry of Agriculture, Forestry and Fisheries will amend the scoring conditions for intervention 73.11, which supports investment in the processing of agricultural products. Under the revised rules, processors using a minimum of 50% domestic raw materials in their production will receive priority when applying for support, according to Poslovni dnevnik.
The Croatian Chamber of Agriculture, known as HPK, said the ministry accepted its arguments and requests at a meeting held with agricultural and business representatives. The preference will apply to processors sourcing Croatian meat, milk, grain and other raw materials produced on the country’s fields and farms.
The announcement does not prohibit processors from importing agricultural inputs. HPK stressed that Croatia remains a free market and that it does not dispute companies’ right to buy raw materials abroad. The change instead affects how non-repayable funds intended to develop Croatian agriculture are allocated among eligible investment projects.
Policy aims to strengthen links with Croatian farms
HPK argued that the previous system allowed support to reach processors that relied entirely on imported raw materials without purchasing Croatian wheat or meat. The chamber said giving additional weight to domestic sourcing would end that practice and align processing investment more directly with demand for output from Croatian farmers.
HPK president Željko Mihelić welcomed the ministry’s decision. He said the result showed that Agriculture Minister David Vlajčić had supported Croatian farmers. HPK presented the rule change as a measure that could help sustain rural production and reinforce the country’s food supply by giving processors a clearer incentive to establish purchasing relationships with local farms.
Representatives of the Croatian Chamber of Trades and Crafts, the Croatian Chamber of Economy, the Baby Beef cattle producers’ association and the Agency for Payments in Agriculture and Fisheries also attended the meeting, HPK said. The discussions focused on protecting domestic farmers and directing EU funds more fairly toward development investment and production. For processors, the new scoring method makes the composition of their raw-material supply a more important factor in access to support; for Croatian producers, it may create a stronger position when negotiating sales to supported processing projects.
