Croatian meat processor to invest €5.2m to upgrade plant

By Jaroslaw Adamowski

- Last updated on GMT

Expansion is firmly on the cards for the Croatian pork processor, following the capital injection
Expansion is firmly on the cards for the Croatian pork processor, following the capital injection

Related tags: Meat, Meat processing plant, Meat processor, European union, Pork

Croatian meat processor Gavrilović d.o.o. has obtained an investment grant of about HRK19.66 million (€2.6m) from the country’s government to finance a number of investments at its plant in Petrinja, Croatia.

Under the plan, the funds will cover 50% of the company’s expansion project, which is worth a total of HRK39.32m (€5.2m), according to data from the company.

Investments to upgrade plant

As part of these investments, Gavrilović is planning to purchase new machinery to increase the capacity of its meat processing plant, improve the facility’s efficiency, as well as add new products to the firm’s portfolio, according to the information obtained by local daily Večernji list.

Gavrilović has secured the co-financing under a deal signed with the Croatian Ministry of Agriculture and the state-run Paying Agency for Agriculture Fisheries and Rural Development (PAAFRD) which distributes funds provided by the European Union to local entities. The EU provides 85% of the available funds, while the Croatian authorities cover the remaining 15%. The contract was signed in the presence of Croatia’s Minister of Agriculture Tomislav Tolušić and Georg Gavrilović, chairman of the company’s management board.

The planned investments are expected to allow Gavrilović to strengthen its presence in various foreign markets. Prior to Croatia’s accession to the European Union in 2013, Gavrilović exported most of its products to other member states of the Central European Free Trade Agreement (CEFTA). Of these, more than 50% of the exports were intended for neighbouring Bosnia and Herzegovina.

Following Croatia’s accession to the EU, the meat business set up a facility in Čitluk, in Bosnia and Herzegovina’s southern part, to process meat for local consumers, and customers in other Balkan states that remain outside the EU. Relocating some of the company’s meat processing capacities to Čitluk enabled Gavrilović to stabilise the prices of the products it offers abroad.

Pig meat imports on the rise

It is noteworthy that, over the past years, Croatian pork meat processors have become increasingly dependent on imports. Between 2007 and 2016, pig meat production in Croatia fell 49% from some 193,000 tonnes (t) to about 98,000t per year. The reduction was largely compensated by higher imports that rose from 32,408t in 2007 to 90,000t in 2016, according to data released by local industry association GIU Croatiastočar.

Gavrilović’s product range consists of a wide range of processed pork meat products. These include hams, salamis, sausages, frankfurters, pâté, mortadella, canned meat, ready-made meals, and others. The meat processor sells its output under the brands of Gavrilović and Gala, according to data from the firm.

The meat business is headquartered in Petrinja, in the country’s central region, about 55km from the Croatian capital Zagreb.

Gavrilović said the company’s history dates back to 1690. The meat processor is owned by Croatian businessman Djuro Gavrilović, and the company’s facilities are ISO 9001-, 14001- and 22000-certified.

Related topics: Meat

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