Production and Business Results of Wine Producers in Continental and Adriatic Croatia

Abstract

Some of the main characteristics of Croatian wine growing are small vineyard areas, small share in European wine production, and negative export-import balance. Production of wine takes place in two different regions (Adriatic and Continental), and at wine growing farms and bigger wineries. Through FADN and Croatian Financial Agency (FINA) data financial indicators were calculated. Main findings are that Croatian wine farms lag behind to wine leading countries (France and Spain) in terms of income and profit (Gross Farm income, Farm Net Value Added and Farm Net Income). Comparing wine growing farms with all farms in Croatia it can be concluded that wine farms perform better in total output, gross margin and farm net value added. Debt-assets ratio (D/A) of wine farms is higher comparing to all other farms. Our calculations showed that wineries in the Continental region perform better than those in Adriatic region. In regards with the size, large wineries (above 2 million Euro value of assets) show better financial indicators comparing with small wineries.