Industry

Food Processing
Food industry is an important part of processing industry in Croatia as well as in Vukovar-Srijem County. Considering natural predispositions and traditional experience in agricultural food processing, this economic activity is undoubtedly the one with the most perspective. Taking into account large cultivating acres within the County, and relatively underdeveloped finalization of agricultural products, besides sugar production, food industry is amongst the most promising activities in this area.

Within detailed plans of food industry development for the next period, the following branches of industry have been pointed out as the most attractive for potential investors:
  • Grinding and production of finalized wheat based products
  • Production of finalized products based on industrial crops
  • Production of finalized fruits and vegetables based products (fruit juices, fruit brandies, fruit purées, etc)
  • Production of meat based products (meat derivatives)
  • Production of sugar, candies and sweets
  • Production of milk and dairy products, eggs and egg based products
  • Intensive production of vegetables, along with reconstruction of agricultural production and development of supporting industries (capacities for cooling and deep-freezing, food packaging, processing and preservation).

Modernization of existing production technologies and introduction of international quality norms are essential for improvement of food sector productivity.
Few companies from this sector have been applying quality norms, such as: Slavonija Nova d.d. (joint-stock company) ISO and HACCP standards, Sladorana d.d. Županja - ISO i HACCP standards, Iločki podrumi d.d. Ilok - ISO i HACCP standards, PIK Vinkovci d.d. - ISO standards, Vukovarka Ltd. Vukovar - HACCP standards, Arabica Ltd. Vukovar - HACCP standards, NGO Ambar Nuštar - HACCP standards, NGO Liščević Nijemci – HACCP standards, NGO Perakić Bošnjaci – HACCP standards, NGO Modic Bošnjaci – HACCP standards.

Amongst 190.000 registered homesteads in the Republic of Croatia, 10.500 are from Vukovar-Srijem County. Within economic structure, 6.756 small and medium enterprises up to 20 hectares are taking just 31.217 hectares and producing mainly for their own needs. Their share in the market production is very small. During the last decade a number of medium-big and big enterprises over 50 hectares has grown and now it amounts to 1.049 with coverage of 95.751 hectares whose part in market production has been increasing and most of their production is market oriented. The positive side of development of agricultural politics, increasing number of registered homesteads and ratio of land which they work on is seen in a fact that properties have become more concentrated where 10% of homesteads treat 75,4% of agricultural land.

Within total agricultural production in Vukovar-Srijem County, grain production is taking the most significant spot with a share of 75% of the surface while other cultures such as oilseeds, sugar beets, fodder plants and other take 25% of the total surface.   

Sladorana
Sugar factory from Županja has been property of Viro Company since 2009. In 2010 the factory reached its historical record and despite poor weather conditions produced 200.000 tons of sugar (in 2009 it produced 73.000 tons). Within the same year, the factory has invested over 40 million kunas, and it was the only one to deliver a bid of 57,28 million kunas to Croatian Privatization Fund for buying 76% of equity of a company named Slavonija nova from Županja. The offered amount is around 7 million kunas higher than an opening price, and Sladorana has obliged to invest 10 million kunas within next five years and to keep all 98 employees.

PIK Vinkovci
PIK Vinkovci is a joint stock company focused on agricultural production, food industry and traffic. The company produces and sells herbal and animal based food products, and within its composition the company has the biggest silos capacities in Eastern Croatia where most of the agricultural production in the country has been placed. PIK takes around 5% of total wheat flour production and a third of corn grits market in Croatia.

The company produces 4,5 million litres of wine on 326 hectares, note that in Autumn 2009 the company bought off five million kilos of grapes from family owned enterprises. In 2010 the company expects profit of 70 million kunas.

Along with grape growing and wine production as basic activities, the company is profiting from catering and tourism in which during the last few years the company has invested around 35 million kunas. On Principovac Estate, owned by Iločki podrumi, various works have been taking place amongst which building of a golf terrain and driving range is the most recent where finishing touches are expected in Spring 2011. The whole investment is worth four million kunas. With this investment, Principovac will get another recreational facility and will complete its touristic offerings.     
Other Companier: Vupik, Slavonija Nova d.d.

Wood Sector
Croatian wood processing industry has been developed on high value forest raw materials, based on exploitation, long-standing tradition of wood processing and quality of human resources. Therefore, wood industry is an important segment of Croatian economy, which has a comparative advantage (long-standing tradition, high potential of domestic raw materials, potential locations, dispersion of economic operators, a relatively low investment in individual business processes and programs) which can be targeted and used for acquisition of competitive skills necessary for sustainability in the market, which is characterized by growing competition and high requirements for suppliers of goods and services.

The area of Vukovar-Srijem County is well known for its extremely large areas covered with forests, where 28% of its territory is forested. On that surface the total wood supply is 20.440.000 m3, which means the average annual allowable cut is around 412 000 m³. Quality precious kinds of wood are dominating with oak as most significant, then ash, and ten other species (elm, hornbeam, maple, locust, willow, poplar, alder, lime, etc.).

The wood sector is one of the most important development sectors of Vukovar-Srijem County, which offers many investment opportunities, which are based on the following:
  • Availability of wood raw materials
  • Training workforce
  • Infrastructure
  • Vicinity of other markets