Đuro Popijač, Minister of Economy, Labour and Entrepreneurship Creditor protection and debt collection
Food industry analysis The crisis has had an extremely mild impact on food producers who produced quality profits last year
Beverage production Applying for loans to pay taxes. Exporting is the best way to raise sales volumes
INTERVIEW
FOOD INDUSTRY
LENDING
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Croatian Business & Finance Weekly Established in 1953 Monday / 10th May / 2010 Year III / No 0108 www.privredni.hr
S U P P O R T E D
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pvinternational pv international C R O A T I A N
C H A M B E R
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E C O N O M Y
DIRK LANGE, EC CHIEF NEGOTIATOR WITH CROATIA AND CHIEF OF DG ENLARGEMENT
PREPARATIONS FOR THE FINALE June will be a month for widespread closing of negotiating chapters and the opening of those remaining and those lagging behind in the process Lada Stipić Niseteo
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s far as both the EC and Croatia are concerned, June will be a month of massive closures of negotiating chapters, opening those remaining and those lagging behind in the process. In his interview for Privredni vjesnik, EC chief negotiator with Croatia and chief of DG Enlargement, Dirk Lange, said that the almost finalised work of the EC and Zagreb will receive the members’ green light. He notes that in the enlargement process, each decision is taken by consensus, and each step forward is considered in detail in 27 capitals. Negotiations have reached a point where there are many temporary closed chapters, but the opening of those most sensitive and complex is running behind schedule. The agriculture chapter is immensely complex, especially since a lot of funding is at stake. This means that the Croatian authorities need to take into account subsidies for farmers. Therefore it is understandable why we are asking for options and guarantees that Croatia will create the necessary payment infrastructure, says Lange. He ventures this is a huge amount of work in which not only farmers have to be identified but also to ensure the appropriate spending of taxpayer money. According to him,
this is one of the most significant challenges before closing this chapter. He further explains that Croatian farmers will not get full subsidies from the first day of membership, as in the case of previous enlargement rounds. On the other hand, the Croatian agricultural sector is specific. Therefore, both sides seek arguments why they want derogations for a certain period of time. “Our goal is to turn Croatia into a competitor in the EU market. The system of subsidies needs to be changed, which does not mean that farmers will not receive subsidies. They will, but in another way,” explains Lange. Regarding the chapter covering Transport, he says that standards have been met, of which they will soon inform EU members. Transport is
one of my candidates for closure before the summer, said Lange. He expressed his hopes that the chapter on taxation will also be closed in June. Croatia has prepared for it quite well. This is a difficult chapter since it directly affects the state budget and public income. On the other hand, you always need to keep in mind the functioning of the internal market. Therefore, too many exceptions cannot be accepted. Overall, a balance has been found, he stresses. Concerning regional policy, we consider structural and cohesion funds. They should be used appropriately, and we need to be convinced that is the case. We expect the country to have strategic plans, implementation projects and capacities for financial man-
agement in order to obtain value for money legally and regularly. We are working closely with Croatian colleagues and have made considerable progress, he explains. Regarding the chapter on Public Procurement, Lange underlines that regulated public procurement equates to the prevention of corruption. This is the core of the chapter. Since we have seen considerable progress here, regarding legislation, implementation and preparation, we are satisfied from this aspect. Therefore members will soon receive our proposal to close it, says Lange. He hopes that the chapter covering Market Competition will be opened in June, but says he will see what happens after the latest round of tenders for shipyard privatisation.
2 VIEWPOINT
Privredni vjesnik Year III No 0108
IVO EŠKINJA, DIRECTOR, TOURIST ASSOCIATION, CITY OF BIOGRAD
A sense of community is an imperative Our joint efforts are best reflected in the organisational quality of our Festival ituated at the heart of the Adriatic, Biograd na Moru (Biograd-on-Sea) has a favourable geographical position, with several national parks and nearby nature parks. These include the national parks of Kornati, Krka, Paklenica and Plitvica Lakes, and the nature parks Vransko Lake, Telašćica and South Velebit. The Tourist Association of the City of Biograd, together with the City organisations has been active for a considerable time in creating a synergy between the public and private sector. A tourist destination can function only with such a level of co-operation, as well as offer tourists the quality services they demand. However, in order to achieve this, each individual in the chain needs to do their homework. Our joint efforts are best reflected in the organisational quality of our Festival of authentic food, drinks, gastronomic specialties, authentic souvenirs and folklore. It is important to point out that all tourist bodies participate equally in this event. We believe we have thus reached our goal, since all those involved realise they work for themselves, their environment and for a recognisable city. It also needs to be mentioned that the festival has been organised for several years now, and we believe this model should be elaborated upon in the future. In order to present the tourism programmes of Biograd in their best light, we have striven to ensure our high profile in all market areas. It is important that a representa-
Entrepreneurs’ day
Exhausted with negotiating and offering solutions It seems everyone, exhausted by the recession, is gathering their strength and waiting for something to happen
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Vesna Antonić, Igor Vukić
tive of the City of Biograd is present at tourism fairs. Equally, it is also important to note that Biograd was proclaimed as one of the best organised cities on the coast, and over the past couple of years we have received many awards for tourism activities from the Croatian Chamber of Economy, Croatian Radio and Television and the Croatian Tourist Association. At the events organised by the County of Zadar we have been proclaimed each year as the best organised city. Biograd is the first city in the County of Zadar that raised the Blue Flag on a public beach, six years ago. The city also pays attention to sustainable development and the cleanliness of the sea. Two years ago, we received the Silver Flower of Europe, recognition from the EU, which is extremely important, since Croatia is the only non-member country to have received such recognition.
FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr
IMC MANAGER Dea Olup +385 1 5600028 olup@privredni.hr
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his year’s Entrepreneurs’ Day, organised by the Croatian Employers’ Association (HUP) passed in a somewhat lethargic atmosphere. It might be due to the selected theme of corporate social responsibility, or entrepreneurs have become exhausted with negotiations and offering solutions. It seems everyone, exhausted by the recession, is gathering their strength, waiting for something to happen. President Ivo Josipović encouraged them to resist the crisis, but also warned them that the search for profit has to take general interests into account. So there is no doubt, this statement has placed him amongst the supporters of the government reform programme. After recently presenting the Recovery Programme, the Prime Minister, Jadranka Kosor, had nothing new for the hosts. As proof that things were slowly improving, she presented data on the decrease in the number of unemployed (down 3.1% in April). It is possible that the atmosphere was even more relaxed due to the fact the government has started to consider entrepreneurial demands. As the vice-president of Agrokor Ljerka Puljić advised us, this government communicates more with entrepreneurs compared with previous ones. “We had a chance to express our opinion, through HUP and the Trade Association of the Croatian Cham-
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ber of Economy (CCE) concerning some of its actions before they were published. Often we communicate on a daily basis,” notes Ljerka Puljić. Recently, the Ministry of Economy has become more active, consulting the CCE Trade Association when designing measures for the trade sector, she opined. Awaiting measures Her company has been awaiting the implementation of measures with great anticipation, and if all spheres of society make a contribution, then the end of the year brings optimism. We need fresh export opportunities, and for the past year and a half export markets have suffered from a complete drought, says Stipetić. At the end of the first quarter of 2010, certain questions appertaining to business partners took place, as well as some signs of contracts. Liveliness is felt, but it will still take a great deal of effort to get back on track, says Stipetić. Hoping for understanding from the banks is something that Biserka Preininger-Fižulić, coowner of Magma expects, saying she did not expect the recession to be so robust and long-lasting. In addition to relieving salaries and reducing part of the crisis tax, it will still take a long time and hard work to encourage consumers. However, this is not the worst period Magma has experienced. “As we survived the war then the crisis is certain to be defeated.”
www.privredni.hr Business & Finance Weekly
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( €594
average nett salary of the sector
( €134.25 million
gross profits for the past nine months
FOOD INDUSTRY ANALYSIS
THE CRISIS HAS HAD AN EXTREMELY MILD IMPACT ON FOOD PRODUCERS Krešimir Sočković he recession has greatly affected the Croatian economy, but according to data covering the food sector, there is a silver lining. Although the food sector showed a drop of 20% in gross profits, entrepreneurs in the sector achieved good results during the first nine months of 2009, according to data published by FINA. They achieved €134.25 million in gross profit (excess income over expenditure). This compares with €119.45 million from the first nine months of 2008, and is 12.4% higher. The food industry has a substantial share in the Croatian processing industry, especially in the context of employment, production and exports. It encompasses 5% of total employment in the Croatian economy. It has the same share of income and expenditure, and achieves a figure of 4.5% in terms of gross profits and accounts for 1.5% of the total number of entrepreneurs in the food sector. Industry employees received, on average, €594 as nett salary during the first nine months of 2009.
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Constant sales The food industry is somewhat independent of many economic problems associated with the virtual economy, which has been dominant of late, says Stipan Bilić, director of Kondin and the Association of Croatian Confectionary Industry. The consumption of food products is quite stable, which contributes to the constancy of production. Furthermore, for the past several years the industry has been investing more than any other and these are the main reasons for achieving good results and strong economic indicators, points out Bilić. The possibility of achieving even better business results
in the industry is prohibited by the fact that the state solves some of the agricultural problems at the expense of the food industry, which further increases the price of raw materials, says Bilić. Currently, locally-produced sugar is doubly more expensive than on the world market, and a majority of imported confectionary products, using cheap sugar, is exempt from duties. It is similar with other raw materials, such as milk and dairy products, vegetable fat, meat and cattle. The second problem is the import of food products whose expiry date is very close, thus turning Croatia into a wasteland of European garbage. Such products are extremely cheap and are harming local production with their low prices, says Bilić. Although the food industry has been achieving gross profits in the first nine months, this does not mean it will end the year in surplus, according to the Croatian Chamber of Economy (CCE). Gross profits differ from profits calculated only at the end
of the year. Therefore, it is still not possible to discuss positive results in the industry. Whether the production of food products registers solid financial results during the next period, it is difficult to say, according to CCE. Considering that, according to data provided by the Central Bureau for Statistics (DZS), in the first three quarters of 2009, the production in this industrial branch was 6.9% down on a yearon-year level. Production for the entire year of 2009 slumped by 5%. Privatisation and consolidation Food production registered a 1.4% increase in physical volume at the beginning of this year (first two months). However this is a short period for giving an exact evaluation for future movements in the industry, even though it is estimated that future trends will be positive considering that the peak of the crisis both globally and locally is behind us. Accord-
ing to the president of the Sector for Agriculture, Food Industry and Forests at CCE Božica Marković, in the recent past, privatisation and consolidation of big companies occurred, creating the required conditions for positive business activities and income growth. The new owners of PPK Valpovo, Žito and M-San invested over €13.7 million. Vupik was sold to the Agrokor Consortium. Several million Euro of investment has been made, or are about to be made in the modernisation of machinery and expansion of cattle capacities, points out Božica Marković. She ventures that Sladorana Županja has been privatised, and that its new owner Viro will invest €10 million. According to CCE data, imports of food products achieved a significantly greater fall that the fall in exported food products, whilst consumption did not decrease considerably. This points to greater consumption of local goods, concludes Božica Marković.
4 INTERVIEW
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Privredni vjesnik Year III No 0108
€5.48 billion in court procedures
ĐURO POPIJAČ, MINISTER OF ECONOMY, LABOUR AND ENTREPRENEURSHIP
THERE IS NO LONG-LASTING SOLUTION TO ILLIQUIDITY WITHOUT MORE EFFICIENT PROTECTION FOR CREDITORS One of the main reasons for illiquidity is the impossibility of adequate protection of creditors and the efficient collection through court procedures where there is €5.48 billion outstanding Darko Buković he government programme for economic recovery, solving problems within the economy, activities for strengthening exports and competitive capacity are some of the themes the Minister of Economy, Labour and Entrepreneurship, Đuro Popijač, discussed with Privredni vjesnik.
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How can the problem of illiquidity be solved? The government programme starts from the final overview of the state and the public sector overall debt, and its resolution. Public companies have presented a full portfolio of debts, and soon the positions of all outstanding debts will be clear. The state will ensure that public companies, the public sector and everything within the domain of the state are not the generators of illiquidity. It will be the first to make this step. After this, it is required to identify clearly who and what continues to cause illiquidity and what is the reason for non-payment. One of the significant reasons for illiquidity is the impossibility of adequate protection of creditors and efficient collection in court procedures. According to information from the judicial system, currently there are disputes for collecting outstanding debt that reach a total of €5.48 billion. One needs to ask whether this is a financial problem, a lack of money or simply a legislative matter.
What can be done to promote exports and economic diplomacy? Croatia is lacking a systematic model for assisting exports, a service for the production economy in order to reach European and world markets. For now, this is our primary mission. In the past, this was done and attempted in many places, but it was not co-ordinated. No visible organised and unique state system for helping entrepreneurs was visible. It is an imperative to start working together, more precisely, through positioning a core of what we call economic diplomacy - unique, technical, technological, organisational and departmental systems, which will work systematically on penetrating new markets. It is therefore required to redefine the role of certain state administrative bodies, and we expect the same for economic chambers and associations, with a request to independ-
ently promote such a model. The model should be based on transformation which would result in all resources in the Croatian Chamber of Economy being directed towards promotion, for example in the case of Austria. The system start point should be that the work effects of this network of institutions are measured and verified by those intended to benefit from this service. There is less foreign investment, and more obstacles, claim investors. Where is the problem? The goal of an inter-resource committee, which includes representatives from the CCE and the Croatian Employer’s Association (HUP), is that we need to finally make clear what makes Croatia unattractive to industry, and attractive for shopping centres. Let us evaluate everything and say what the problem is. Why does
investment from the USA find a ready home in EU countries? Furthermore not all revolves around rigid labour legislation and labour price, as it is often mentioned. The mission of this committee will be to objectively review where and on what activities attention needs to be focused, and what needs to change. Regarding entrepreneurial zones, a large amount of money has been invested in 400 such zones. Taxes paid by entrepreneurs in these zones have been alleviated; they were given land and similar inducements. At the same time, there is no answer to what represents an obstacle for more significant and higher greenfield investing. What would you recommend to entrepreneurs? Increase economic activity, encourage competitiveness and exports, as well as fighting for improving business and labour conditions within the Croatian economy. These are my tasks as Minister. The state has certainly decided to implement change so that the public sector can function as a most efficient service to the economy and public. To create an acceptable environment for entrepreneurship is the premise for new activities and creating new values, since only an entrepreneur who feels he is valued, and not accused in advance of everything which is bad, can strengthen the entire economy. Only strong economies create and guarantee a social state, quality public sector and general progress.
www.privredni.hr Business & Finance Weekly
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BEVERAGE PRODUCTION
APPLYING FOR LOANS TO PAY TAXES Exporting is the best way to raise sales, but without harmonisation with EU legislation it is difficult to be competitive Krešimir Sočković roducers of beverages are registering abysmal sales results. However, last year they managed a higher profit than the year before, according to data from FINA. This situation is mainly due to a decrease in business expenditure, as well as a high level of dismissals. They achieved gross profits of €78.63 million, some €13.42 million more than the first nine months of 2008. Meagre business results from beverage producers are primarily a consequence of prolonged payment deadlines (over 200 days) and non-uniform tax payments, opines Ružica Glazer, director of the Economic and Interest Association for the beverage producers. Companies which are predominantly owned by the state, are excused their tax obligations.
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As a result, they can market their goods under more favourable conditions. This creates underhand competition and certainly aggravates the market position of others, once healthy and legal organisations. Concrete suggestions for improving production conditions have been mooted, and the long-lasting presence of the grey economy has often been pointed out. Since this problem is impossible to solve, the marketing of legal production has decreased, by over 40% in certain production areas, adds Ružica Glazer. Vicious circle Beverage producers have long been asking the harmonisation of tax collection with payment deadlines for sold goods. The proposal to go from 30 to 60 days has not been adopted, but the new law on excise duties has
CONFECTIONERY INDUSTRY
brought an innovation – a system for deferring payment. This concept would be worthy if everyone were inside the system, since trades-people would become payers of excise duties. Since only the producer needs to be in the system of deferment, nothing has changed. The deadline for paying excise duties remains 30 days, with 45 days for VAT,
whilst the collection of claims stretches even longer. Producers continue to apply for loans in order to pay taxes. Since nobody pays within the deadline, producers have found themselves in a vicious circle, ventures Ružica Glazer. Producers believe they are entitled to repay their debts to the state by instalments, with a maximum deadline; excise duties on soft drinks should be abolished, regulations on concessions should be amended, compensation for packaging material waste should be decreased, and unnecessary taxes should be abolished in order for any production to survive until Croatia joins the EU. Directing sales towards exports is the best way, but without harmonisation of Croatian laws with those of the European Union, it is difficult to be competitive.
JAPAN TOBACCO INTERNATIONAL COMING TO CROATIA
GERMANS ON A QUEST IN ENCOURAGEMENT FOR OTHER JAPANESE INVESTORS CROATIA he Croatian market is becoming more attractive to the German confectionery industry. As a result, the representatives of companies Feodora Chocolate, Storck, Niederegger, Nawarra, W.u.H. Küchle, Sanotact and the Association of German Confectionary Industry German Sweets visited Zagreb recently in order to become acquainted with the market and the possibility of marketing their products or increasing their existing share. The German-Croatian Industrial and Trade Chamber organised meetings with representatives of
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Croatian chain stores, importers, distributors and the local confectionery industry in order to encourage contacts and cooperation. Many German companies see the opportunity, during the next two years, to work in Croatia which has the advantage of being the regional leader. Many of them already work here, and interest continues to grow. However market prices are relatively high, although many duties will disappear when Croatia joins the EU, which is an opportunity for high-quality products. Croatian consumers are demanding, and therefore German products enjoy a high reputation, says Andreas Haack, Manager of the Department for Economics in the German Embassy in Zagreb. He ventures that business partnerships have a perspective are a distinct possibility due to the long-term friendship between the two countries. (E.D.)
he third largest global tobacco company, Japan Tobacco International (JTI), is coming to the Croatian market with its Winston and Camel brands. Within a period of five years, they are anticipating €120 million in sales and a contribution to the Croatian state budget of over €90 million from excise duties and VAT on cigarettes. They also plan to create 50 new jobs. Yasushi Shingai, of JTI CEO, pointed out during the press conference last week that they, as the fastest growing tobacco company in the world, are coming to
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Croatia with ambitious plans for long-term growth and business development. Shingai believes their business moves will encourage other Japanese investors to invest in Croatia. The Japanese company, with 26 factories and 5 research and development centres, is not planning to produce in Croatia. It will import cigarettes from Germany and distribute them through the Zagreb company Fibis, and three other distributors. Their global share of tobacco products is 11%, and their initial goal is to take a 5% market share in Croatia.
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Privredni vjesnik Year III No 0108
CROATIAN FOREIGN CURRENCY MARKET Currency
Kuna exchange mid-rate
AUD CAD JPY CHF GBP USD EUR
5,064314 5,418264 6,175814 5,116866 8,312561 5,688263 7,248553
Source: HNB
EUR
Luka Rijeka: HRK3.05 million profit In the first quarter, Luka Rijeka earned profit of €0.42 million, a 4.8% drop on a year-on-year basis, according to data from the consolidated financial report of the company, published at the Zagreb Stock Exchange. The results are in line with plans, as was stated in the explanation of the business results. Total income of Luka Rijeka amounted to €7.64 million, a reduction of 5.4%.
USD
5.70
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5.14
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5.65
5.12
7.27
5.60
5.10
7.26
5.55
5.08
7.25
5.50
5.06
7.24 4.5.
WEEK MAY 8, 2010
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CROATIAN NATIONAL BANK
Foreign debt decreases slightly, however...
Car sales plummet by 28% compared with 2009
In April, 3,122 new vehicles were sold in Croatia. This is 9% less than in March, and 25% less than in April 2009, according to data provided by the Promocija Plus Agency. During the first three months of 2010, 12,106 vehicles were sold or 28.5% fewer on a year-on-year basis. Croatia osiguranje insures loans against death, sick leave and dismissal Since the beginning of the year, Croatia osiguranje has offered the public insurance against the non-repayment of a loan, death, sick leave and dismissal. Insurance for repaying a loan is voluntary and is contracted for allpurpose auto credit up to a maximum of €26,000 and a repayment deadline of seven years. For an average loan of €10,000 and a repayment deadline of seven years, the user is able to get insurance against the non-repayment of the loan, with a monthly premium of €9.
Croatian gross foreign debt stood at €44 billion at the end of January roatian gross foreign debt amounted to €44 billion at the end of January 2010. This is €539 million less than at the end of December 2009, according to the latest data of the Croatian National Bank (HNB). This decrease on a monthly level results from the reduced indebtedness of banks and other sectors. On a year-on-year level, the figure is HRK3 billion higher. Therefore, its growth rate is 9.2%, the lowest rate of growth since August 2005. At the end of January, banks foreign debt totalled €10.2 billion or €476 million less than in December 2009. This is the result of decreased indebtedness according to cash and non-residential deposits.
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It should also be mentioned that with this reduction in debt, banks’ share of total foreign debt stood at 23.2%, and is the only sector whose share declined in relation to December 2009. Decreasing, decreasing Other sectors (mostly companies and non-banking financial institutions, including the Croatian Bank for Reconstruction and Development, HBOR), cut their foreign debt by €183 million, to €21.2 billion compared with December 2009. After years of registering high annual growth rates, foreign debt in this sector has been slowing its growth rate. Annual rate of growth was 5.1% in January, which was
the lowest rate since July 2002. The share of other sectors within the total debt registered minimal growth in relation to December, and now stands at 48%. At the end of January, foreign obligations totalled €5.2 billion, some €28 million more than December. Since there was no significant new debt or repayments of existing debt in January, these movements have been the consequence of a weaker euro. Furthermore, the state took over part of the foreign debt of a public company. The largest monthly growth was registered through obligations of direct investment, which reached €1.03 billion at the end of January, a rise of €12.74 million on a monthly level. (V.A.)
www.privredni.hr Business & Finance Weekly
WE PRESENT 7
OPG CAHARIJA, KRAŠIĆ
Neglected land turned into lavender fields
WINDOR, BUK
The La Vanda brand was created with the help of designers, and presently sachets stuffed with dried lavender flowers, smelling badges, and fragrant ecosachets as well as modern bags are sold under this trade mark
Windows reduce bills From its beginnings, the company has been developing its production of window profiles made of aluminium and wood, in compliance with the latest technological achievements uided by the Latin expression Audaces fortuna iuvat – ‘fortune favours the bold’, we created a family farm in 2008, with the aim of growing and processing lavender, and later other essence herbs. Our lavender fields spread in the middle of mild hills of the Croatian Prigorje,” says Andrijana Pozojević, co-owner of OPG-a Caharija. According to Pozojević, everything began four years ago when they inherited a small piece of land with an old plum orchard. The land had been neglected and uncultivated for many years. It was completely covered with weeds, the same situation in neighbouring areas. After short consideration and discussions, they decided to turn this area into something positive. When they thought about what to do, the husband came up with the idea of growing lavender. The entire family and friends joined the work activities of cutting down trees and planting lavender. After two years of preparing land and consolidating surfaces, they were ready for the first planting. They currently own two fields with a two-year
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plantation, covering 1.5 ha. They plan to plant a further area of 1 ha. this autumn. Brand La Vanda “Over time, we realised we have enough strength of will to produce lavender souvenirs and its intoxicating essence oil. After consulting with experts, we realised that image and design play an important role in the product marketing. Therefore, our first step was directed towards design. We hired young and awarded designers from the studio Kuna Zlatica from Zagreb. They worked on creating the visual identity and design of certain products. This is how the La Vanda brand was created, and currently sachets stuffed with dried lavender flowers, smelling badges, and fragrant eco-sachets as well as modern bags are sold under this trade mark,” says Andrijana Pozojević. They also develop other products, for example wedding decorations, gastronomic and ecological products, which can draw the attention of private buyers, but also companies, as business gifts. The products are still not sold everywhere, and they will be presented at several fairs, for example Florart. The can currently be viewed on the Facebook group La Vanda, and soon on the internet address www.la-vanda. com.hr. (J.F.).
aterials which contribute to sustainability and energy efficiency are becoming more popular in the construction of modern residential and business spaces. In addition to foreign brands, that paved the way for such construction products, there are some local producers, such as Windor from Buk, a small village near Pleternica. Since its creation in 1992, the company has been developing its production of window profiles made of aluminium and wood, in compliance with the latest technological achievements. Our products, says Stjepan Franjić, director of Windor, meet high criteria of heat, atmospheric and sound isolation which are prescribed for low-energy and passive facilities. The know-how of our experts, who control and manage the production process, starts with the knowledge of values and natural resources, after which it continues to the latest technology. On-going training of employees, and the implementation of modern achievements and materials has brought Windor’s products to the top of quality performance, design and suitability for classic, low-energy and passive facilities, ventures Franjić. Individualised aluminium profile Amongst the latest energy-efficient products, Franjić points out the windows made from the Natura profile, which will soon be available on the market. This
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product is made according to modern standards of green construction. “The main feature of these windows is t h e minimum loss of energy throughout all seasons. It is intended for installation in all types of facilities, and meets regulations for low-energy and passive houses. The window is designed with a triple iso-glass, containing an inert gas which acts as an isolator. The windows are covered with LowE coating, which reflects energy back into the facility, and the aluminium is fitted on the outer part of the profile, adding to thermal isolation. Five specially designed Windor seals act as highly effective protection against rain, noise and drafts,” explains Franjić. The company also produces entrance doors, which due to a low-coefficient of heat passage can be fitted in facilities of all types of classic, low-energy and passive constructions. They have also developed their own aluminium profiles, used in the production of windows and doors. It should be mentioned that their products are exported to Austria, Bosnia and Herzegovina, Montenegro, Greece, Italy, Israel, Hungary, Serbia and the Ukraine. (B.O.)
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Privredni vjesnik Year II No 0108
GREEN TOURISM
How green the Valley of Plitvice
Caves, water, natural beauty, history and traditional living are five main themes that will be the bases for branding the village of Rakovica Sanja Plješa he area of Plitvica Lakes, particularly the village of Rakovica, will be brought to life over the next ten years with new tourist themes. In 2008, the representatives of the Muza company came up with the idea of themed routes, eco-museums and branding of this destination, under the title Valleys of Plitvice. Recently, the project was shown to the public.
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The way of the traditional life “The area of Rakovica will become a unique complex of ecomuseums that unites, interprets and presents the diverse potential of the cultural landscape through themed routes, pathways and tracks with visitor and interpretation centres,” outlined the director of the Tourist Association of Rakovica, Mira Špoljarić. Caves, water, natural beauty, history and traditional living are the five main themes that will be the basis for branding the destination. Three of the themed routes, under the heading One route for each day, are designed in such a way that tourists will visit Rakovica for three days, following one route each day. They will take the route for water, caves and woods, and each will have the appropriate logo and sign, for
example, a bear for woods, and a crab for water. The plan is to build longer routes and shorter themed pathways. Longer routes will be for either hiking or sport and recreational tracks, on some of which it is possible to horse-ride. Certain routes will be designated as cycle pathways. Each of the routes will present its features to tourists; the cave route is represented by the theme of caves, woodlands will represented by trees, and water the theme of water, pointed out Mira Špoljarić. There will be two interpretation centres on the water route, the Mill of Cvebin and the House of Water. The House of the Woods on the woodland route will show tourists the traditional way of living. The complex for visitors to the Cave House will be located on the cave route. It will be possible to access the Network of Wells from each route, which spreads across the entire Valleys
of Plitvice, said Mira Špoljarić. The Visitor Centre is also a documentation centre, called the Historic House, and it will be located in the centre of Rakovica. The project contains a detailed explanation of all aspects, elements and buildings of the Valleys of Plitvice in order to provide a systematic and long-term implementation of this project for its organisers, above all the tourist association and the Municipality of Rakovica. Another reason is to be able to apply the project for EU funds, noted Mira Špoljarić.
::: news Končar: low-floor train for B&H Board President of Končar Elektroindustrija Darinko Bago and Ivan Bahun, Board President of Končar - Električna vozila (electric vehicles), presented their low-floor electro-motor train produced for railways of the Federation of B&H, which should be released for operation this year. These trains are state-of-the-art in Europe, and are produced by only five European countries, pointed out Bago. According to Bahun, the train is worth some €5 million, depending on the level of equipment.
New construction is already green All buildings that have been built in the last ten years could receive the American green certificate, but also certain European certificates, considering the current regulations according to which the energy efficiency scale become considerably higher. This was concluded during the discussion on green construction, held in the conjunction with the sixth international conference on Croatian real-estate market.
Ina: research rig in Syria Ina has started drilling a research rig Beer As Sib in the Aphamia block in Syria. The block is situated in the central part of Syria close to the Hayan block, where Ina discovered six fields with larger quantities of oil, gas and condensates. Ina is the operator in the research block with a 100% share. The drilling of the research rig Beer As Sib is planned to reach a depth of 2,900 metres. It is expected the work will last around 90 days, according to Ina.