Lavender farming in Croatia

Overview 2003-2009 By Danijel Coric

Pioneer steps
Very developed aromatic herbs production in the 1950s, 60s,70s

Playing the business Big league

-70 tons of lavender oil per year -200 tons of sage oil per year -Everlast oil, laurel oil -Pyrethrum natural insecticide major producers -due to inactivity and switch towards tourism, technology moved to Kenya and USA so now they grow authentic Dalmatian type of Pyrethrum

Expansion of tourism
Tourism kills the collection of wild plants Lavender fields at island HVAR and other coastal regions die out, detroyed by fire and negligence People swith to tourism without using lavender as value added asset rather sell SUN&SEA Continental distillers reamain active mostly on basis of wild collected herbs from Bosnia, Dalmatian background, Serbia, Macedonia No real farming operations for aromatic plants except for Chamomile

The years of warfare

Still, up to 1990. industry remains vibrant War brings mine fields and loss of interest in medicinal herbs Haresting and processing of aromatic plants almost dies out Lavender at HVAR grown at minimum from 70 to 2 tonnes of oil per year in 2000.

New incentives wrong people

In 2002. IREKS industry offers free plants to anyone willing to grow lavender for their industrial needs Most of the plants were planted in small garden-like patches no economic value Some plants re-sold and never planted in designated areas

Sudden boom in interest for lavender

Journalist started exploring the financial side of lavender farming Too much sensationalism No work-a lot of money ideas First continental farms in Jaska (near Zagreb), Vara din, Hrvatska Kostajnica First serios scientific research at Zagreb University

plant that revives the rural areas!

From 2004. till 2008. around 50 new farms in continental Croatia, with average 5000 plants Revival in coastal region Istria optimisticly plan 600 ha of new farms until 2010. delayed Hvar new farms and re-planting of old ones - tourism

Technology issues
No good advisory on farming lavender, organizing a farm, seling the flowers and oil Too many small farmers going to buy their own distilation units low usage of installed capacity Production cealing reached with given technology and knowledge Lack of machinery for further expansion of production

Need for strong organizations

2006. Lavandula Croata association of farmers is formed 30 members with 25 ha of fields in 2009. Advisory and machinery pose main issues to cope with Export and standardization are the next steps Need for increase in filed size to min 5 ha for sustaiable production French farms average 40 ha

Distilling capacity oversized, but

So far 3 main distillers use max 30% of their capacity Need for new 1000 hectares of fields to compete with global players like Bulgaria and France Cooperatives and lab tested oils required Specialization far from happening: oil flower distilling

Huge opportunites
Vast patches of land remain unused and turned into young forest depopulation and effects of war Bad governement policy no tax on land 2000 eur per hectare cheap land for expansion Expansion of production stops at manual labour limitations need for Machine ring organizations Interest of foreign investors hindered by bad legal situation

Organic production ex war zones

Ex war zones were not used for agriculture for years Cheap land and incompetent local administration Associations goal go organic Paperwork games bad domestic certificates Need for international standards Organic chance on small fields

Switch to value added products

Slight progress in product design New products souvenirs and cosmetics Bad marketing and lack of funds for market research Far behind Bulgarian brands, French out-of-space Need to work on integral lavender story in Croatia Visibility and recognition CROATIA=LAVENDER

Pricing the goods retail vs. wholesale

Not competitve in wholesale for export Low production capacity and limited flexibility Prices in retails often higher than in France Need for management and sales skills No niche business education offered everybody on their own China better design, low price NOT ORGANIC

Associations plans
Coonect more national farmers in 2009. Start cooperation with regional associations in Balkans Unite the offered oil quantity for export Connect with US and Australian farmers for education and exchange Protect local variety of lavender Budrovka Promote new high yield angustifolia varieties Travel to global trade fairs and contact buyers Apply pressure on goverment for better conditions

THANK YOU FOR YOUR TIME