Croatia’s agricultural policy and legal framework has undergone substantial transformation over the past three decades, shaped largely by its accession to the World Trade Organization and the European Union. These milestones prompted reforms that shifted agricultural support away from production-linked subsidies, reduced market-distorting measures, and expanded policy objectives to include rural development, environmental protection and climate action. Croatia has progressively aligned with international standards on responsible agricultural supply chains and sustainable food systems, integrating these principles into national legislation and policy commitments.
National strategies, including the Agriculture Strategy to 2030 and the Common Agricultural Policy Strategic Plan for 2023–27, provide a comprehensive vision for the sector’s economic, social and environmental development. Developed through extensive stakeholder consultation, these strategies aim to foster innovation, improve rural livelihoods and address structural challenges across agriculture and food systems. Croatia has also taken steps to tackle broader food system issues such as value chain functioning, food waste reduction and the promotion of healthier diets.
While policy frameworks are well established, further progress could be achieved through stronger inter-institutional coordination and a more holistic approach to food system governance. Stakeholder engagement is robust at the national level but could be enhanced in Croatia’s participation in EU-level regulatory processes. There is also scope to better target support measures to improve the rural business environment, strengthen farm viability and expand opportunities for producers, drawing on the experience of OECD countries.
The agro-food sector has shown encouraging performance following significant structural transformation. Farm output and incomes have grown, albeit remaining below EU averages, and participation by young farmers has increased, supported by targeted policies. Women’s involvement in farm ownership has also risen, though female farm managers remain underrepresented. Croatia’s agri-food exports have expanded and integration into global value chains has deepened, even as the sector continues to face a persistent trade deficit.
Improving the enabling environment for agriculture will require better use of existing policy tools. Large areas of unallocated state-owned agricultural land represent untapped potential to boost productivity, attract skilled farmers and improve access to finance. Greater emphasis on innovation, rural infrastructure and productivity-enhancing investments within CAP funding could further strengthen the sector. Encouraging co-operation through associations and cooperatives, alongside a clearer export and market diversification strategy, could improve value chain performance and market opportunities.
Croatia demonstrates strong potential for sustainable agricultural productivity growth. Output has increased without a corresponding rise in greenhouse gas emissions, and emissions intensity has declined faster than EU and OECD averages. However, the declining carbon sink from land use and forestry highlights the need to reassess forest management practices to balance production, climate mitigation and renewable energy objectives. More detailed and integrated forest management planning will be essential to meet long-term sustainability goals.
Environmental pressures from agriculture remain relatively low, supported by rich ecosystems, abundant water resources and a high share of protected areas. Groundwater quality is generally good and pesticide use has declined markedly, though concerns remain around surface water quality, ammonia emissions and nutrient surpluses. Improving data availability and monitoring systems would support more effective assessment of environmental performance and policy impacts.
Finally, Croatia’s agricultural knowledge and innovation system has solid foundations but requires a clearer strategic vision and stronger linkages among public institutions, private actors and farmers. Limited scale and fragmentation constrain innovation uptake, underscoring the need for a sector-specific innovation strategy. Strengthening collaboration and better leveraging European networks could help Croatia overcome structural constraints and support a more innovative, competitive and sustainable agri-food sector.
