PP Orahovica invests further in its processing facility

Exploiting changes in consumption habits

Demand for carp, a traditional species consumed in continental Croatia, is evolving. Consumers are looking for more convenient products that are easy to prepare, and some companies are obliging.

Croatia is famous for its coastline and the islands along the coast which are a magnet for tourists. The country attracted over 17m foreign tourists in 2019 (arrivals were down the next two years) drawn by the weather, the beaches, and the seafood. Local seafood at the coast is sourced from the sea but further inland, on the continental part of Croatia towards the north, freshwater fish such as trout and carp are also produced. Among the biggest carp farmers in Croatia is the company PP Orahovica a part of an agricultural corporation with interests in cereals, wine, and hazel nuts.

Ponds set in a nature reserve, so risks from pollution are minimal

The PP Orahovica fishponds have been producing fish for more than hudred years under the different political dispensations. After Croatian independence from Yugoslavia in 1991 the farm was renovated and modernized to improve the yields and to make the farm more efficient. Today the ponds are part of a nature reserve, so the area is free of industry and of agriculture meaning that the surroundings are quiet with no danger of pollution or of agriculture run-off contaminating the ponds. The ponds are also a magnet for water-loving birds, animals, and plants and thus contribute to the biodiversity of the area.

At the farm many developments have been pioneered that have enabled production per hectare to increase to the highest in the region, says Jakov Beslic Gadzo, the company’s sales manager. All the ponds, for example, are linked to one another and to a computer system by optical data cables so that a number of operations, such as feeding, can be carried out automatically or by remote control. The feed that is given to the fish is specially formulated with low fat and high protein to give a high-quality final product that reflects the feed the fish has been given. The feed is sourced from commercial suppliers with whom the company is in constant dialogue to ensure that the nutritional requirements of the fish, which have been identified based on many years of production, are taken into account by the feed suppliers. The experience that the production managers have gathered over the years has led them to devise a formula for the feed that results in the best possible fish meat with a high protein and low fat content. Feeding with cereals as is done traditionally, says Mr Gadzo, results in a high fat content which is not what our consumers want. While some fat is desirable when smoking the fish, when selling it fresh it is less attractive.

Jakov Beslic Gadzo, Sales Manager, PP Orahovica

Weather plays a significant role in determining market size of fish

At PP Orahovica it typically takes two years to produce a marketsized fish. However, the size is ultimately determined by the natural conditions on the farm. If the warm weather starts early in the year it extends the feeding time, and conversely, if the cold weather extends into the spring it reduces the time the fish feed resulting in smaller fish at harvest. Carp does not eat when the weather is cold, so an extended winter can do a lot of damage. If the temperature is right the fish feed from May to August and are then harvested starting from September. However, cold weather in May leaves only three months for the fish to feed which impacts their size at harvest. Even if summer is delayed the fish must be harvested in September—they cannot remain on the farm for another year. Firstly, it would mean no deliveries to customers; it would also affect the entire cycle of operations if a batch of fish was not harvested on schedule; and finally it would result in fish that were too big for the market and therefore difficult to sell.

That said, Mr Gadzo has noticed that the weather is changing and becoming more unpredictable. He and his colleagues in production have noticed that there are issues with diseases, with weather that is too warm or too cold, and with the availability of water, in contrast to the past. The company has some 6,000 ha of pond surface at locations spread across continental Croatia between Zagreb

and Osijek close to the Croatian borders with Hungary and Serbia. Some of the sites are placed close to rivers from where the ponds can draw water, but others are dependent on the rain. If that is delayed or fails altogether it can cause a lot of hardship. Partly to mitigate this the company is acquiring more water surface and investing in renovation and digitalisation. The investments are very big as ponds that have remained unused for years need a lot of renovation mostly with heavy machinery to make them productive again. The work includes building dykes, draining the ponds, cleaning and disinfecting them and finally restocking them.

Production increases slightly each year

PP Orahovica is part of the Agro Invest Group that has divisions for cereals, wine, and hazel nut production. Fish farming, which is a more recent line of business, falls into the overall food category. The company recognised the need to preserve nature as well as provide employment and a healthful source of protein to the local population, factors which played a role in the decision to branch into fish farming. The choice has proved to be a good one as the fish side of the business is now the second largest in terms of turnover after cereals. Every year we expand our pond water surface a little, says Mr Gadzo, and production too increases by 10 or so a year. As is typical with pond farming the common carp is grown in polyculture with other carp species, bighead, silver, and grass carp. These species feed on the vegetation in the pond helping to keep the water clear and preventing the formation of silt. They are also products in their own right but are traditionally not valued as highly as carp. Despite that, the ability to offer a range of species to a buyer is an advantage, says Mr Gadzo, and because they are produced in smaller and smaller volumes, the price is in fact moving upwards.

The sh from the ponds are harvested and weighed and then transported to the processing facility where they will be converted into convenience products for sale through supermarkets.

As the market changes, companies need to adapt

Another trend on the market is that traditional ways of buying carp as a live or a whole round fish are changing. Families are becoming nuclear so buying a single large fish is being replaced by a preference for conveniently gutted and cut fish. Sales of modified atmosphere packaged steaks, fillets, and portions, that are ready to cook are increasing every year, reports Mr Gadzo, driven by consumer demand and by the retailers responding to these changes in consumption habits. To accommodate the evolution in customer behaviour, PP Orahovica established a processing facility in 2016. Since then, it has invested regularly in upgrading and expanding the facility which culminated in 2021 with the installation of new processing machinery worth EUR665,000 (HRK5,000,000). The facility processes some 50 tonnes of fish a day into fresh, frozen, and smoked products and a line of breaded products is planned. Another aspect that is changing gradually relates to availability. Carp has traditionally been consumed in connection with festivals like Christmas and Easter, but today consumers would like to buy it more often than during these two periods. This calls for planning by all the links in the supply chain, feels Mr Gadzo. Farmers need to plan their production so they can harvest more often and retailers need to plan their promotion campaigns to attract consumers when the fish is available. The market for carp is evolving and companies that evolve with it stand a good chance of persuading their customers to eat more fish not only for its taste, quality, and health benefits but also for its convenience.

PP Orahovica

Stjepana Mlakara 5 33515 Orahovica Croatia

Tel.: +385 33 673 351 Fax: +385 33 673 125 www.pporahovica.hr info@orahovica.hr

Sales manager: Jakov Beslic

Gadzo jakov.beslic-gadzo@pporahovica.hr Area of ponds: 6,000 ha Production volume: 4,000 tonnes of freshwater fi sh per year Products: Fresh, frozen, smoked steaks, fi llets, portions Markets: Croatia, Poland,

Italy, Austria, Slovenia, Hungary, Bulgaria, Romania, and

Serbia Employees: 300 employees Brand: Panona Mare