CEI WMF WORKSHOP Innovative opportunities for wholesale market

CEI – WMF WORKSHOP Innovative opportunities for wholesale market operations using ”Intellectual Logistic” CROATIA AT GLANCE Ukraine, 4 -8 October 2011 Zoran Krsnik, NWMC

NATIONAL WHOLESALE MARKET COMPANY CROATIA Inc. (NWMC) Headquarter: Slavonska avenija 52 Address: 10000 ZAGREB - CROATIA Director: Zoran Krsnik, B. Sc. Lawyer Cellular phone: + 385 98 318 815 Telephones: + 385 1 2406 400 or 2406 399 Fax: + 385 1 2406 399 E-mail: nacionalna-veletrznica@zg. t-com. hr or zoran. krsnik@zg. t-com. hr Web: www. veletrznica. mps. hr

BASIC FACTS ABOUT THE NWMC Date of foundation: 30 January 1998 Founder: Government of the RC Legal form: joint-stock company Purpose: impl. /coord. /superv. of WM Project Basic activities: project management, consulting and marketing of fresh F&V Sector of our interest: food sector Area of activities: CEI and Mediterranean Our pattern: Mercasa

Part 1 Brief Overview of the Croatian Macroeconomic Situation Sources: Croatian Bureau of Statistics

Croatia – key facts Land area (5. 659. 400 ha) 56. 594 km 2 Population 4. 4 mil. GDP per capita (60% of EU) 10. 380 EUR Sea border 5. 835 km AGRICULTURE AT GLANCE Agricultural area (3. 137. 000 ha) 55, 5% Share in GDP: - agriculture and fisheries 6. 5% - food industry 3. 5% Agri-food products in total trade 9. 2% Employment in total 7. 3% Average farm size 3, 1 ha Rural population 36. 3% Agricultural output 0. 6% of EU 25

GDP real growth rate in % 2007 2008 2009 2010 2011 forecast 5, 1 2, 2 -6, 0 -1, 2 0, 8 9. 781 10. 770 10. 311 10. 374 Net salary in EUR 663 709 717 722 725 (I-VIII) Unemployment rate in % 14, 8 13, 2 14, 9 17, 6 16, 7 (I-VIII) Consumer prices - "Inflation" 2, 9 6, 1 2, 4 1, 1 2, 2 Industrial production growth 4, 9 1, 2 -9, 2 -1, 4 Retail turnover growth rate in % 5, 3 -0, 5 -15, 3 -1, 8 0, 9 (I-VIII) Tourist nights in 000 56. 005 57. 103 56. 300 56. 416 + 2, 6% (I-VIII) Tourism revenue in mil. EUR 6. 752, 6 7. 459, 4 6. 379, 7 6. 230, 0 GDP per capita in EUR

GENERAL CHARACTERISTIC • Good geostrategic location • Reach in natural resources as - unpolluted fertile land - good climatic conditions - plenty of water resources • Characterized by natural and climatic diversity • Divided into 3 mayor natural an geograf. areas: - Pannonian and Peripannonian area - High – land area - Adriatic coast area with more than 1. 000 islands

LAND USE 2009. Out of the total agricultural land of 3. 137. 000 ha, 1. 300. 000 ha or ca. 42% is utilised agricultural area (UAA) out of which: • 863. 023 ha are arable land gardens (66, 4 %) • 343. 306 ha are permanent grassland (26, 4 %) • 36. 659 ha are orchards (2, 8 %) • 34. 380 ha are vineyards (2, 6 %) • 15. 304 ha are olive groves (1, 2 %) • 7. 328 ha other (0, 6 %)

FFV DISTRIBUTION CHANELS THROUGH PERIODS 80% 70% 60% 50% 40% Retail shops 30% Wholesale markets 20% 10% 0% 1945. -1990. -1995. -2000. -2010.

Throughput in tons • 2001: year of ending of construction work and commencement of markets activities Rijeka-Matulji Split Osijek • 2004: est. 14. 000 35. 000 10. 000 • 2005: est. 15. 000 39. 000 14. 000 • 2006: est. 18. 000 41. 000 16. 000 • 2007: est. 17. 000 40. 000 18. 000 • 2008: est. 16. 000 43. 000 15. 000 • 2009: est. 17. 000 44. 000 14. 000 • 2010: est. 18. 000 45. 000 14. 000 Total 59. 000 68. 000 75. 000 74. 000 75. 000 77. 000 Estimated turn over of 77. 000 tonnes in 2010 means 11, 8% of FFV Market shares. Together with Zagreb WM with 100. 000 to, Metkovic with 8. 000 to and Zadar with 5. 000 to, total WMs’ turn over is 190. 000 to or 29, 2 % of FFV market share.

THROUGHPUT OF FFV IN TONES 90000 80000 70000 60000 50000 Turn over in t 40000 30000 20000 10000 0 2004 2005 2006 2007 2008 2009 2010

Project Achievements • • • WMs in OS, RI-M and ST were completed within a reasonable time They are operating since 2001/2002 They have a stabile turn over Grey economy in FFV market is reduced MIS is implemented All standards in FFV trade are improved Locations of the WMs are very attractive The value of WMs’ assets has rapidly increased There is a need and potential for enlargement of WMs There is an interest to involve other sectors on WMs Preparations for II phase of development of WMs has started CEI Wholesale Market Foundation is established

Part 3 NWMC PRESENT AND FUTURE ACTIVITIES CALL FOR COOPERATION

NWMC ACHIEVEMENTS During the WMP realisation NWMC achieve: • Great experience in project management • Excellent contacts with stakeholders in food sector in the country and abroad (producers, wholesalers, retailers, institutions, administrations) • Experience in international collaboration • Experience with EC Funds • Good references

NWMC FUTURE PLANS In future NWMC will be focused on: • Project management • Facilitation of food trade • Marketing (CMO) • Work with farmers (PO’s) and wholesalers • Cross-border cooperation • Development of CEI-WMF

Thank you very much for your attention