Croatian meat business boosts capacity with $13m investment

By Jaroslaw Adamowski

- Last updated on GMT

Croatian meat business boosts capacity with $13m investment

Related tags Pork Processing equipment & plant design

Croatian meat producer PPK karlovačka mesna industrija d.d has completed an investment worth HRK 95 million (€13m) which enabled it to expand output capacity at its Karlovac plant in north-western Croatia.

The project allowed the meat business to build a new fresh meat production facility, which raised PPK’s production capacity to more than 20,000 tonnes (t) per year. Among others, the facility was fitted with new packaging and labelling machines.

Following the completion of the investments, the company’s facilities were visited by Croatian Minister of Agriculture Tomislav Tolušić, reported local news site​.

Monitoring technology trends, developing new products and continuously improving the existing ones, all the while using traditional raw materials, are the driving force behind our business, now and in the future​,” said Igor Miljak, the president of the company’s management board.

Upgraded meat processing 

In addition to this, the Croatian firm used a portion of the funds to upgrade its meat processing capabilities. PPK modernised and expanded its sausage and salami production capacities, and constructed a new pig fat production plant. Following the upgrade, PPK is capable of producing 2,000 tonnes (t) of salami per year, 

The company used part of the fund to finance a new pig fat site
The company used part of the fund to finance a new pig fat site to make lard

Other major projects carried out under the €13m investment programme included the installation of a new fresh meat cutting line with a capacity of 60t per day, as well as a new canned pork meat production line, fitted with an annual capacity of up to 2,000t. With the aim of increasing its logistics capacities, PPK also purchased new commercial vehicles.

Preferential treatment for investors

The investments were implemented in the country’s Ravča economic zone (REZ) on a land plot of about 33,000 square metres (sq m). Locating the new facilities in the zone provided the meat company with a number of benefits. These included exemptions from municipal contributions and temporary exemptions from utility charges, according to data from the REZ. 

PPK specialises in pig meat production and processed pork meat products. These include sausages, hams, salamis, cans and others, according to data from the Croatian company. To date, the company has spent a total of HRK350m (€48m) to expand its facilities from the initial surface of some 3,000 sq m to today’s 20,000 sq m.

Since 2003, PPK has been part of Croatia’s meat processing giant Pivac, which comprises three meat industry players: Pivac Brothers Meat Industry, Dalmesso d.o.o and PPK. The group said its products are distributed to some 132 retail outlets across the country. These include both Pivac’s own outlets, as well as privately-owned stores and foreign supermarket chains, including Lidl and Kaufland.

The Croatian group has a total staff of 2,200. In addition to pork meat, Pivac said its product range comprises poultry and beef meat products. The group’s products are HACCP- and ISO 9001-certified, according to the company.

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