ECO-FOOD PRODUCTION AND MARKET PERSPECTIVES IN CROATIA

Abstract

The importance of ecological production and ecological products has significantly increased during the last decade especially in the domain of food products. The main reason for this trend is increasing environmental and health awareness of consumers. The purpose of this study is to identify main determinants for the future development of ecological agriculture and all of its market dimensions in Croatia. To understand current state and perspectives for development of eco-food production in Croatia, the study investigates present trends on the eco-agricultural product market on both the demand and supply side. On the demand side, it is crucial to understand basic characteristics and present changes in consumers’ behavior, attitudes and preferences. From supply aspect, it is necessary to identify basic determinants and changes in the production process. Special attention was paid to distribution channels since distribution channels are often referred to as a key problem by eco-food producers in Croatia. Apart from supply and demand trends on the home market, the study analyzes main trends on the global market which directly or indirectly affect direction of eco-agriculture development in Croatia and perspectives of eco-food market. The paper puts forward the systematized overview of above mentioned trends in the “Eco-food market trends matrix” which has been developed for the purpose of this paper based on the analysis of strategic documents and relevant literature review. An additional, third dimension of the matrix is the dimension of expected future trends. This matrix can indicate strategies and marketing activities needed for optimization of marketing program for effective satisfaction of consumer needs and for fostering the undoubtedly desirable social change in the direction of greater demand (and consequently supply) of ecologically acceptable food. It also enables the recognition of main challenges and issues which need to be considered when designing strategies on macro level.

Key words: eco-food, eco-agriculture, food production, distribution channels, trends