Turning point for Croatian shipyards Last chance options Other options as well as bankruptcy are available
Viticulture Unknown Success Croatia has high imports but almost half of local production is from small wine producers
Ivica Matošević, Matošević wines, Kunčići We are not renowned as a country of wine but quality is high
SHIPYARDS
WINE
INTERVIEW
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Croatian Business & Finance Weekly Established in 1953 Monday / 22th March / 2010 Year III / No 0102 www.privredni.hr
S U P P O R T E D
Intergovernmental conference on April 16
WILL THE CHAPTER ON COMPETITION POLICY BE OPENED? lthough the beginning of the next intergovernmental conference has been postponed until April 16, it is highly probable that the chapters on Competition Policy and perhaps Judiciary and Fundamental Rights are to be opened. By the end of the Spanish EU presidency, the European Commission anticipates that all remaining chapters will be opened which includes Judiciary and Fundamental Rights, Competition Policy as well as Foreign, Security and Defence Policy, the latter originally halted by Slovenia. Nine chapters are to be closed, including Free Movement of Goods (four closing criteria are still to be confirmed by the Council of the European Union), Public Procurement, a part of the Agriculture and Rural Development, Food Safety, Veterinary and Phytosanitary Policy, Fisheries, Transport Policy, Taxation, Justice, Freedom and Security as a part of judiciary improvements, as well as Environment and Financial Control, the latter confirmed by the European Commission to have matched all five criteria needed for its closure. Free Movement of Goods, Free Movement of Capital, Competition Policy (probably to contain the criteria necessary for the final restructuring of shipyards) as well as Agriculture and Rural Development are to be closed by the end of the year, together with Judiciary and Fundamental Rights, Regional Politics and Co-ordination of Structural Instruments and Financial and Budgetary Provisions, which will close the grand finale of preaccession negotiations. (L.S.N.)
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CROATIA IN 2010
Gross National Product as well as unemployment rate to increase slightly Banks have sufficient funds at their disposal although projects are scarce or high-risk eljko Lovrinčević, advisor to Croatian Prime Minister, Jadranka Kosor, on economic matters, stated last week at a conference, organised by the journals Banka and Poslovni dnevnik, that Croatia will see a very slight increase in gross national product by the end of 2010, due to governmental anti-recessionary measures without which the gross national product would no doubt slightly decrease. However, negative trends in unemployment will continue for longer than expected. A steadier growth in employment is anticipated for the spring of 2011, when gross national product is anticipated to increase between 2% and 2.5%. The government plans to boost further growth by encouraging foreign investment in the energy sector, especially in the area of renewable energy sources. However, according to Lovrinčević, energy prices will have to increase in order to attract international companies and ensure profitability of their investment.
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Interest rates falling Čedo Maletić, chairman of the board of the Croatian Postal Bank (Hrvatska poštanska ban-
ka), confirms that interest rates have started to decrease. Government anti-recessionary measures support lending, as banks have sufficient funds at their disposal but projects are either scarce or high-risk. According to Velimir Šoje, founder and director of business advisory company Arhivanalitika, the state imposes too many onerous restrictions on the private sector, which needs to be strengthened by accelerated
privatisation. Slavko Linić, Parliamentary representative of Social Democratic Party, estimates that the city of Rijeka does not need two shipyards in such close proximity. The two Split shipyards should also be consolidated. The privatisation of ancillary industries for consolidated shipyards would reduce their losses to 10%, which would comply with European intervention regulations. (I.V.)
2 VIEWPOINT
Privredni vjesnik Year III No 0102
TATJANA SINDIK-MILOŠEVIĆ, DIRECTOR, INSTITUTE FOR IMMUNOLOGY
Croatian biotechnology can be rescued
TURNING POINT FOR CROATIAN SHIPYARDS
LAST CHANCE OPTIONS
A decision on increasing capitalisation should be made rapidly since the sole Croatian biotechnological production facility could perish when Croatia enters the EU he Institute for Immunology has a long tradition, just as medical care in Croatia. It was founded in 1893 and was a top producer of immunological medicine (vaccine) during the 20th century as well as medicine made from human plasma. There were three reference centres of the World Health Organisation in conjunction with the Institute, and there was a training centre for departments in charge of control and production of vaccine for a large part of the world. Stopping epidemics spreading across transitional and developed countries of Western Europe is due to quality products from the Institute, which owns the initial types from which vaccine is produced. The Institute can secure its independence from importing important products and thus developing biotechnology in the country. This concerns high quality and safe biological products developed by highly qualified workers, whilst over 80% of production can be exported.
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Losing a licence Due to a lack of investment over the past 15 years in improving the conditions of production and supply of new equipment, the situation at the Institute has become unsustainable. Production complies with special regulations of good production practice which Croatia adopted from IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
As well as bankruptcy, the Croatian government proposes maintenance and conversion of certain shipyard facilities Lada Stipić-Niseteo ompetition Policy is the last of the 33 chapters which the European Commission (EC) needs to open as part of Croatian negotiations with the European Union (EU). Member states were prepared to give their approval after Đuro Popijač, Croatian Minister of Economy, offered written arguments, explaining possible options and solutions in the case that the second round of shipyard privatisation ends similarly to the first – providing no results. Dirk Lange, Head of the Unit in the Directorate General for Enlargement at the EC, explains that the written argument was sent to European capitals, as agreed with the Croatian Government, and that the procedure is currently running its course. Considering potential buyers and the sensitivity of this particular problem, the contents of the written argument have not been made public. The EC Directorate for Croatia also stated that the argument offers no new or unknown facts as filing for bankruptcy was an option even during the first round of privatisation.
C Europe, harmonising completely with them. At our current location, the Institute cannot meet all the required conditions, which has caused it to lose its licence from the World Health Organisation. This has closed the doors to exports as one of the most important sources of financing. For the past five years, we have been intensively working on relocating the Institute outside Zagreb, and that is why we have made a study on the cost-effectiveness the project. The state, as majority owner, is interested in preserving jobs. Consequently, the state made a decision on increasing the capitalisation of the Institute in March 2009. This secured their relocation and harmonisation with EU regulations, as well as obtaining favourable loans. The implementation of this matter should be made rapidly, since the only Croatian biotechnological production facility could perish when Croatia enters the EU.
FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr
IMC MANAGER Dea Olup +385 1 5600028 olup@privredni.hr
EDITOR IN CHIEF Darko Buković +385 1 5600003 bukovic@privredni.hr
TRANSLATION Tr@duco traduco@zg.t-com.hr
EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr
COUNSELLOR, INTERNATIONAL OPERATIONS, LANGUAGE EDITOR Ray Fletcher fletcher@privredni.hr
A facilitated solution EC requires SAA provisions, one of which being shipyard restructuring, to be fully respected. In this matter, the EU is not concerned with how this particular branch of industry will permanently and irretrievably solve the problem of its dependence on state grants. The problematic procedure of how an industry branch
can become completely free from state grants is however, familiar to EU countries. Both old EU members, such as France, Spain and Germany after its reunification with former East Germany, as well as some newer EU countries, such as Poland, have experienced similar problems with their shipbuilding industries. Regulated maritime assets as well as the reduction of indispensable investment for new owners would facilitate the privatisation process, especially when not only local economy shows the first signs of recovery from the global crisis, but also when shipyard final products are not overly sought-after. Write-off costs, estimated at €1.71 to €1.78 billion, will be settled by Croatian taxpayers, but this is considered to be the last grant financed by the state budget. Bankruptcy, as the final measure, will be filed for certain shipyards. However, the Croatian government has plans to maintain those shipyard facilities which are still operational and convert them to different purposes. The role of sub-contractors that, unlike the shipyards, are profitable will be seriously taken into consideration. The only certain fact is that jobs will be lost and added to the 317,000 people who are currently out of work, making the whole procedure even more painful. It would have been better had the whole procedure started at a time when the business activity index was higher and when the restructuring process was required by current economic rather than political circumstances.
www.privredni.hr Business & Finance Weekly
( 762
3
registered
producers in 2008
( 2,379
protected
wine varieties
VITICULTURE
UNKNOWN SUCCESS
Croatia imports almost one third of the wine consumed whilst almost half of local production is the result of small-sized wine producers
Krešimir Sočković t is no secret that Croatia has great potential for the development of wine production, but this has still not secured the firm position of Croatia on the world map of wine. Even though local wines are positively viewed by wine experts, Croatian wine makers say that years of poor management have reduced their potential. This mostly concerns unclear land registration, the lack of quality and indigenous varieties sold via nurseries, old vineyards and a nonexistent Croatian development strategy for wine production, according to Hendal’s survey Dynamics of the wine industry in 2009.
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According to data from the Croatian Institute for Viticulture and Oenology, in mid 2008, Croatia had 762 registered producers of 2,379 protected wine varieties, which is a significant increase over 2004, when there were 445 producers of 1,192 protected wines. The structure of wine producers according to vineyard size shows extremely
small vineyards, often smaller than one hectare. This makes production, as the main source of creating a range of upmarket wines in Croatia, quite fragmented. Total wine production between 2005 and 2008 showed an average annual increase of 6.2%. According to data processed by the Central Bureau for Statistics, production totalled 513,588 hl. Organic wine production assumes production on family farms and businesses that do not own ‘industrial’ wineries. Between 2005 and 2008, production fell, but in 2008 production on farms totalled 653,722 hl, which is more than the industry produced. Fewer but more expensive wines exported In 2008, Croatia imported 143,680 hl. of wine mostly from Macedonia, Bosnia and Herzegovina and Slovenia. If correct, this indicates that a third of the wine consumed on the local market was actually imported. On the other hand, Croatian exports declined between 2005 and 2008. In 2008 Croatian wine export-
ers exported 28,564 hl, which is a slight decline in relation to previous years. However if the same data are viewed in relation to their value, it can be seen that the value of exports in U.S.$ increased by 23% during this period. This data points to a better promotion of Croatian quality and high level wines, that managed to find their place on the foreign market. They also point, however, to a drop in the sales of lower quality wines. Amongst export markets, those with the greatest potential are the EU, the wider region and markets with limited internal production. Bosnia and Herzegovina, as well as Germany are two of the most important export markets for Croatian wine. If the amount marketed by organic producers is added to the quantity of registered wine sales on the Croatian market (628,564 hl), then total sales of wine amounted to 904,408 hl in 2008. Key factors for success Wine producers agree that securing a recognisable quality for Croatian wine is a key factor for
success in the industry, which assumes the definition of higher quality standards. Price competitiveness is also important, especially in the area of table wines. Wine producers need help. Croatia needs to be branded as a country with preserved nature and a deep and rich tradition of wine-making. Specific indigenous wine varieties also need to be branded. According to Hendal’s survey, half of wine consumers in 2008 could not name their favourite wine producer. This points to a low level of loyalty to a certain producer and wine brand amongst the wider population, as well as a degree of penetration from foreign wines. Data concerning wine consumption according to origin point to loyalty to Croatian wines, and the originating region of the wine, particularly in northern Croatia, Slavonia and Dalmatia. Croatians mainly buy wine through supermarkets, but it seems impossible to find a single producer easily distinguished as the best or most popular amongst Croatian consumers.
4 INTERVIEW
Privredni vjesnik Year III No 0102
am disappointed we are failing to advance in those production “Isegments where we could be strong, one of which is viticulture
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Ivica M Matošević, Matošević wines, Kunčići
WE ARE NOT RENOWNED AS A COUNTRY OF WINE It is wrong to export wines priced at €2, since this devalues our image
The key to the survival of our wine makers is to step out into foreign markets and retain, at the same time, the position on the local market by promoting our indigenous wine varieties. In order to preserve the influence on the local market, various promotional, training and marketing actions need to be taken, similar to those of Vinistra.
Jozo Vrdoljak rivredni vjesnik spoke to Ivica Matošević, owner of the company Matošević wines and president of Vinistra, about the most significant problems Croatian wine makers are facing and the possible directions Croatian might take in order to become a country famous for wine, which it currently is not, despite the quality of the wines
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Are Croatian wines famous in the world? Despite having wines of extremely high quality, Croatian wine makers are not recognised throughout the world. We are not perceived as a country of wine. Tourists who visit us know we produce excellent wines, others do not. Therefore, a lot work needs to be done before Croatia can be positioned as a country of supreme wines. What is the cause of the crisis and how can we overcome it? The crisis emerged when the former Prime Minister prohibited buying presents within public companies. Naturally, this is not the cause, but since that pronouncement our wine producers have started to feel the effects of the crisis. A few other unfortunate circumstances happened around the same time, the ban on smoking and a fall in purchasing power. The economic crisis is a consequence of state irresponsible consumption which has lasted for the past six years. If I spent every year for six years 15% more than I make, I would soon perish. From the perspective of wine makers, I have to say the policy of the Ministry of Agriculture mainly
deals with calming down any social tension. This practice needs to end at some point, since this is a time when we need to invest in the development of key products with added value, with which Croatia can compete on the world market, and one of them is wine. A lot has been invested in subsidising capital investment and planting vineyards, where certain steps have been made, which is good. On the other hand, nothing has been invested in branding Croatia as a country of wine. The result of this kind of policy is that our cellars are full. Do you think a crisis of full barrels might emerge? It already has. That is why for the past year our leading wine producers have intensified their activities with the aim of penetrat-
ing foreign markets, analysing the models of others. Now, we have a clear vision about this. We have people who know the model of our activity financing and exactly what to. However, I sincerely doubt the government has the energy to do it, since it mostly deals with social policy and tractors on the streets. I do not want to be misinterpreted, but I am disappointed we are failing to advance in those production segments where we could be strong, one of which is viticulture. To what extent does the trend of importing wine damage our wine producers? Our exports cover a fifth of imports, with which we cannot be satisfied. The penetration of famous world wines is permanent, considering each country protects its producers in some way.
Do you think one of possible solutions is to form an association of wine makers of all Croatian regions? We are working hard on this, and in a few months the public will be presented with models of associating. We are very close to forming an umbrella association. We have Vinistra with 106 producers, and there is also an association of wine makers from Kutjevo, Međimurje and Plešivica, and various Dalmatian associations. I am certain that after various attempts, the time has come to gather around wine makers, so that we can present ourselves more transparently to state institutions when we are asking them to fund projects. Is it necessary to select the best wines from all regions when entering the world market? Each region has potential. Therefore, it is necessary to present only the best wines to the foreign market. When the best wines succeed, they will be followed by solid wines of big producers which produce in sufficient quantity to become significant exporters. It is wrong to export wines priced at €2, since this devalues the image of the whole country. We are too small a country to succeed with merely ‘average’ products.
www.privredni.hr Business & Finance Weekly
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CROATIAN-SLOVENIAN CONFERENCE
Recession to be fought through joint forces No disagreements among Croatian and Slovenian entrepreneurs during the conference Igor Vukić positive atmosphere, created during the recent conference of Slovenian and Croatian entrepreneurs in Brdo pri Kranju, reminded its participants of mutual benefits to be gained from a joint entrance into the international market. According to Ivo Josipović and Danilo Türk, presidents of Croatia and Slovenia respectively, former political disputes are gradually fading and Croatia will soon become a full member of the European Union. Both presidents agree that a gradual building of mutual confidence between the two countries is almost as important part of conducting business activities as having a favourable credit line. Vesna Trnokop-Tanta, vice-president of the Croatian Chamber
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of Economy, used the opportunity to invite Slovenian and Croatian entrepreneurs to jointly enter regional energy projects, the chemical industry and other sectors, to apply jointly for European funding or to interactively offer proposals for Adriatic harbours to third parties. If disputes among Croatian and Slovenian entrepreneurs, with the exception of healthy competition, did exist in the recent past, they were not seen amongst the 146 companies participating in the conference. Some concrete business proposals as well as an exchange of samples were also announced. Afaktor, a factoring company owned by Abanka, the third largest Slovenian bank, is very much interested in expanding its business activities to Croatia as many financial regulations have been harmonised
as a part of Croatian negotiations with the European Union. Tomislav Antunović, a Croatian oil businessman, and Branko Roglić, the owner of Orbico, both have companies in Croatia and Slovenia. “We can achieve a lot together as we are able to understand each other. “Not only do we share a border but also a similar history”, notes Roglić, whose company achieves € 82 million income annually only through Slovenia. New business perspectives Sandra Stankovič, Mega-M representative, can provide Slovenian businessmen with phone operators in their mother tongue when conducting business activities in Croatia and, most probably, a similar service for interested Croatian parties. Mega-M is just one of several small Slove-
nian phone companies that apply innovative solutions in order to claim a larger share of the overall market, which was once a monopoly. Once Croatia enters the European Union, the management of Croatian company Vindija hopes to increase its sales share of the Slovenian market. Saša Vojnović, adviser to the Sales Director, says that some time ago Vindija opened a company in Slovenia providing sales chains with its products. According to Samo Hribar Milič, General Manager of the Chamber of Commerce and Industry of Slovenia, the global financial crisis has changed many business perspectives. Therefore, mutual co-operation between Croatian and Slovenian companies could provide both sides with a way out of the recession and ameliorate any negative effects.
THE GAJBAPIVE PORTAL
INTERNET
REFRESHING, ENTERTAINING AND GENEROUS
LOW SALES, HIGH BROWSING
agreb company Huber market communications started a portal gajbapive.com (beer crate) at the end of January. Here, beer lovers and other internet users can find daily news from the world of the beer industry and sport. Igor Kern, the company supervisor, says the portal advises readers on varieties and technical characteristics of beers available on both the Croatian and foreign markets, as well as foreign beer producers. Gajbapive.com does not publish sponsored articles and makes a clear distinction between content and advertising, according to Kern. “The project started when we had a sufficient number of partners for the portal to be published and serviced. After two
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months of online work, they are satisfied with their position and visitor ratings. We do not have direct competitors. There are several other web pages covering beer, but each is specific, and do not overlap with our concept”, notes Kern. They intend to develop the project exclusively through their own funding. Their goal is to build and successfully maintain a pleasurable virtual place for beer lovers. This naturally includes designing a beer map, or rather a search engine, for restaurants and bars where beer is properly served from the choice of the glass, appropriate temperature and a solid selection of beer varieties, concludes Kern. (B.O.)
nternet use in Croatia is constantly growing. Today, almost half the population over the age of 15 uses the internet, thus becoming an essential part of their lives. According to a survey conducted by GfK Omnibus in December 2009, 66% or approximately 951,000 of Croatian households own a computer. Some 50% of households own a classic PC, and around 20% a notebook. Householdss in Zagreb and its surround-ing area are the most connectted. The majority of people use DSL/ADSL/VDSL connections, whilst 29% of households use a wireless connection. Almost half of those questioned, (47%) connect to the Internet from home and 16% from work. T-Com is the dominant internet provider at 72%, followed by Optima/Optinet and B-net, each with 6%, as well as Iskon internet and Carnet, with 5%. Some 7% is covered by other service pro-
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viders. Users point out that their main use of internet is for browsing (79%), current affairs information (77%) and sending e-mails (75%). Half also use the internet for social networking, and 40% use it to browse advertising. Around 36% use it for listening to radio, 9% for shopping, whilst only 4% of those responding keep up with financial stock markets and fund activities. (B.O.)
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Privredni vjesnik Year III No 0102
CROATIAN FOREIGN CURRENCY MARKET Currency
Kuna exchange mid-rate
AUD CAD JPY CHF GBP USD EUR
4,919280 5,254427 5,909465 5,062723 8,101601 5,348131 7,257414
Source: HNB
EUR
USD
5.35
16.3.
17.3.
18.3.
19.3.
CHF
5.08
7.27
5.33
5.06
7.26
5.31
5.04
7.25
5.29
5.02
7.24
5.27
5.00
7.23 15.3.
WEEK ENDED MARCH 20, 2010
::: news
7.28
5.25 15.3.
16.3.
17.3.
18.3.
19.3.
4.98 15.3.
16.3.
17.3.
18.3.
19.3.
GENERAL AND LIFE INSURANCE
€27.4 million for wind farms Končar Electrical Industries from Zagreb is shortly to start building a wind farm near Split, investing more than €27.4 million. Some €10.95 million will be invested as a cash investment and €16.44 million will be provided through loans. The first wind-powered generator, which is currently operating on a test basis, has already been built on Pometeno brdo in the Split hinterland. Further plans involve the construction of 15 more wind-powered generators, with a capacity of one megawatt, and the construction of one wind-powered generator, with a capacity of 2.5 megawatts. Will EKOPLUS receive € 10 million? According to the official EBRD webpage, the European Bank for Reconstruction and Development is currently considering whether to issue a loan to EKOPLUS, a utility services organisation from Rijeka, which is to use the funds for the construction of a biomechanical waste processing plant. EKOPLUS, whose majority owners are the city of Rijeka and Primorskogoranska county, mostly deals with waste management. The plant itself would manufacture bio-fuel and bio-gas, which would be used for the production of electric power. Housing construction reduced by half The last quarter of 2009 showed a 50.3% reduction in commissioning new construction works when compared with the same period last year. At the end of December 2009, construction companies had 6,170 new flats under construction, which is almost 52% less when compared with the same period of 2008. If 2009 as a whole is used as a comparison, this shows a 13.6% reduction in the commissioning of new construction work.
INSURANCE PREMIUMS TOTALLED €0.22 BILLION Gross general insurance premiums amounted to €0.17 billion with gross life insurance premiums totalling €48.08 million ccording to cumulative data from the Croatian Insurance Bureau for January and February 2010, 27 insurance companies received gross insurance premiums worth €0.22 billion, a 1% decrease over the same period last year
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General insurance Gross general insurance premiums totalled €0.17 billion, a 0.5% decrease year-on-year. When compared with the same period last year, which showed a 78.02% share of total premiums charged, this year general insurance premiums amounted to a 78.46% share. The premiums for compulsory motor liability insurance totalled
€53.70 million, a 2.2% decrease over the previous period. Last year 9,041 fewer new insurance policies were taken out, a fall of 3.6%, which resulted in the average premium increasing from €216.48 to €219.65. General insurance premiums have also shown reductions as follows: accident insurance by 6.5%, motor body insurance by 14.2%, rolling-stock by 24.9%, property insurance by 14.2% as well as travel insurance by 11.4%. Life insurance Life insurance, with gross premiums amounting to €48.08 million, showed a reduction of 3%. Compared with January and February 2009, when they showed
a 21.98% share of total premiums, this year the figure fell to 21.54%. In terms of the structure of life insurance, the highest share related to protection policies, (€41.78 million, a 1.9% decrease), together with a 1.3% decrease in annuity insurance premiums (€0.19 million), a 7.4% decrease in secondary insurance policies (€3.19 million) as well as a 6.9% decrease in insurance policies for weddings and births (€0.19 million). Specific forms of life insurance, whose policy holders assume investment risks themselves, amounted to €2.78 million, a 12.4% decrease when compared with the same period of the previous year. (V.A.)
www.privredni.hr Business & Finance Weekly
WE PRESENT 7
GOSPOJA, VRBNIK
PARKETI SABLJO, BJELOVAR
Wine conquers China A family owned co-operative with a long tradition of working in tourism, grape cultivation and wine production
Leading regional producer of parquet Producing unique floor and furniture inlays welve years ago, when we started exporting wine to the EU and the USA, we wanted to see whether our wines were able to compete in these huge markets. Demand has been increasing ever since. Recently, we signed a contract to export wine to the Guangxi Zhuang Province of China, with a population of 300 million, disclosed the director of the agricultural co-operative Gospoja Franjo Toljanić from Vrbnik on the island of Krk. This family owned co-operative with a long tradition in tourism, grape cultivation and wine production, specifically Vrbnička Žlahtina Toljanić. In 2005, Toljanić introduced new technology into wine production, but preserved the traditional cultivation of the vines on an area of 10 hectares. Since this level of production is insufficient, he also purchases grapes from other farmers on the island. In addition to the famous Žlahtina, he also produces mass-market wines and smaller quantities of brandies and liqueurs. A certain percentage of his production is sold through his restaurant, where he serves traditional island cuisine.
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Immense prospects for co-operation “Chinese business partners saw our products for the first time
at a wine fair held in London in 2005. Recently, we have accepted their invitation to visit this region. I was pleasantly surprised with what I saw and experienced. However, in this region, where tourism is developing rapidly, it was still impossible to buy wine five years ago. Even today, it is quite difficult to find wine in almost half the restaurants. The market is simply enormous, and more appealing and expensive products are in high demand”, pointed out Toljanić. He added that this market was interesting due to the possibility of Chinese tourists visiting Croatia. More and more Chinese tourists travel through Europe, and surveys have shown that as consumers they are appreciate quality. They are prepared to spend up to €1500 on food and drink. In addition to Toljanić, Zlatan Plenković and Mirjana Zelenika from Ilok will also export their wines to this region. “However there is more good news” ventured Toljanić. “Our Chinese business partners are soon coming to Croatia and Croatian producers will open a joint office in China. This should mean there are greater possibilities for co-operation with other Croatian companies”. (J.F.)
he company Parketi Sabljo was founded in 2003. Its production, sales and income have been constantly growing since then. Ružica Sabljo founded the company which she manages with her husband, Ivan. “We began with five workers, and our main activity was parquet laying and finishing work in constructions. We employed ten more parquet layers a year later, since our business increased. We then expanded our activities to the production of borders and wood inlays at the end of 2004. In 2005 we started our own production plant where we employ seven carpenters. We have started a special project here, regarding the production of inlays made from solid wood and specially designed furniture, woodwork and tables, and all according to our customers’ orders”, said Ružica Sabljo. “Later, we opened offices in Slovenia, Sweden, Germany and Austria. The company produces unique wood inlays for floors and furniture”. They design and manufacture unique jewellery cases, picture frames, souvenirs and pendants. All items are made from solid wood, which can be redesigned or changed to fit customer requirements. Only three years after founding the company, they became the leading
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company in the region for laying parquet and for fitting floor linings within structures. Today they employ 35 parquet layers, 9 carpenters and six employees working in administration and sales. Raw materials need to be imported They purchase raw materials for production and processing from both local and foreign market. “Considering the extremely strict criteria in production and product quality, it is not always easy for us to obtain raw materials locally. Therefore, we need to look towards the foreign market. This concerns quality dried oak, walnut, cherry, maple and olive boards”, she ventures. In Croatia, they mainly co-operate with construction companies from Bjelovar, Zagreb, Zagreb county, Primorje and Gorski Kotar, and southern Croatia. They started a capital project three years ago for building a production factory in the business zone East in Bjelovar. The plant covers 1,800 m2, and houses an exhibition and sales showroom, a restaurant, retail, storage facilities and production. “Now we are ready to produce high quality products in better facilities and within realistic deadlines”, concludes Ružica Sabljo. (J.F.)
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Privredni vjesnik Year II No 0102
The Marco Polo Association
IN THE FOOTSTEPS OF THE FAMOUS EXPLORER The Association’s main goal is to promote Marco Polo and his achievements with text written in several languages, it represents a Croatian souvenir – Marco Polo’s passport, whose life and heritage have been recently gaining in popularity.
Sanja Plješa he eternal question is, was Marco Polo born on the island of Korčula or in Venice? One thing is for certain - he was born in the former Venetian Republic. His house exists on Korčula and is visited each year by many Croatian and foreign tourists. However, Marco Polo and his achievements have not been sufficiently promoted, even though he could become a Croatian brand. For this reason, the international association The Travels of Marco Polo was founded in April 2009. The Association was created during the Olympic Games in Beijing, when Croatia was presented as the land of Marco Polo. Representatives of the Croatian Olympic Committee gave their Chinese colleagues a Marco Polo passport, which represents a replica of the gold plate given to Marco Polo by Kublai Kahn upon his journey back home. It said in Mongolian: “Power of the eternal skies! Holy be the mighty name of the Kahn! Let he be executed, who shows him disrespect!” This Tatar plate marked the beginning of passports and, by extension, credit cards. It enabled Marco and his father Niccolò free passage through cities and states, said Jasna Vukas, president of the
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international association The Travels of Marco Polo. With a desire to promote this histori-
cal curiosity, the members of the Association made a replica of the plate. Bound in leather and
Gavrilović with 3.5% were also mentioned by those questioned. The first “Best Buy Award” survey in Croatia was conducted in January 2010 by Axios in cooperation with Pricewaterhouse Coopers, which provides audit and consulting services, and the market research centre Gfk.
among 3,500 different international wine brands, Belje Graševina Goldberg, vintage 2008, was awarded a silver m e d a l at the
Globally known name Jasna Vukas pointed out that the Association’s main aim is to promote Marco Polo and his achievements, his contribution to connecting two civilisations (eastern and western), his influence on many geographical discoveries, expanding knowledge of the effect of products he brought to the Old Continent, for example spices, silk, pasta, gun powder and many others. The Marco Polo project should be promoted at a national level. There are many historical facts to our benefit, and China’s intention is to insist on Marco Polo’s Croatian identity in its opening to other countries. One of the most famous historians of Marco Polo, J. A. Gilman, says the name of Marco Polo is one of three or four globally famous people that almost every individual knows. There are several products on the Croatian market carrying his name. For example, there is a dark chocolate produced in Split, containing spices he brought back to Europe, and Pošip, the wine he brought from Čara on Korčula.
::: news Podravka offers best buy products According to the latest “Best Buy Awards” survey, Croatian citizens selected Podravka products as offering the best price-to-quality ratio, followed by Kraš, Vindija, Konzum, Dukat and Gavrilović. Podravka products were chosen by 16.5% of respondents, Kraš by 11.2% and Vindija by 10.5%. Vegeta with 6.4%, Konzum with 6.1%, Dukat with 4.6% and
Belje wine awarded silver medal Agrokor has reported that
Vinalies Internationales in Paris. The competition was held from February 26 to March 2. Individual samples were evaluated by 100 trained judges coming from international institutions worldwide. Vinalies Internationales is one of the largest international wine competitions, organised by the Union des Oenologues de France (French Association of Wine Experts) in Paris.