Croatian Chamber of Agriculture proposes restructuring fund

Željko Mihelić, President of the Croatian Chamber of Agriculture (HPK), has proposed the establishment of a domestic restructuring fund to help the agricultural sector adapt to climate change and increase competitiveness. In an open letter to farmers and the government, Mihelić addressed the “catastrophic drought” affecting production and causing market disruptions across nearly all sectors.

Mihelić emphasized that the goal of the fund is not to maintain outdated production models or provide temporary aid, but to facilitate a transition to a new model. This includes investing in new technologies, changing production structures, improving processing and storage, and implementing economically justified irrigation. He noted that while farmers must invest their own capital and share the risk, the state must create the necessary conditions and the financial system must enable these investments to occur.