Global food prices hit three-and-a-half-year high, but Croatians see little relief

Food prices on the world market reached their highest level in three and a half years in July, according to data from the UN Food and Agriculture Organization (FAO). Cereal prices rose amid concerns over exports from the Black Sea region and damage to export infrastructure, while meat prices declined.

Analysts say global trends are also relevant to Croatia as part of the European market. However, Croatian farmers and consumers say they are seeing little evidence of these changes at home.

Cereal prices rose by around 3 to 4 percent in July compared with June, with wheat prices jumping 5.8 percent. But Croatian farmers say domestic prices have remained largely unchanged.

“Croatia is clearly not a country where these trends can be tested. The price of wheat here is the same as it was 25 years ago. Compared with last year, it has remained at the same level. Corn is slightly more expensive than wheat, but its price has not increased significantly either. It is currently trading at the same price as in February, and prices remain far below profitable levels,” said Mato Brlošić, a member of the Board of Directors of the Croatian Chamber of Agriculture.

Corn production is expected to decline this year. The FAO, meanwhile, says drought is likely to have a greater impact on sugar prices, which rose by 5.6 percent in July.

Not all food commodities became more expensive. Milk prices fell by 0.7 percent, while meat prices dropped by 2.8 percent.

The decline in meat prices raises the question of whether Croatian consumers are seeing the same trend, particularly in light of the impact of African swine fever.

“Swine fever has not affected pork prices at all. We depend on imports because we do not produce enough pork, and we didn’t before. Prices are therefore determined by pork prices on the European market, where there is currently an oversupply. At the moment, pork prices in Croatia are more than 25 percent lower than last year,” said Zvjezdana Blažić, an adviser on the food industry and agriculture.

Consumer advocates, however, dispute the claim that meat prices have fallen significantly.

The Croatian Consumer Protection Association says citizens contact them daily with complaints about high food prices, and that consumers are not seeing meaningful reductions in meat prices.

“Consumers simply don’t see it. If they find something cheaper, it is probably frozen meat bought in large quantities on European markets, then thawed and sold here. It simply doesn’t add up. Anyone can see for themselves when they go into a store that meat prices are extremely high, and there is very little we can do to monitor or control them because it is very difficult,” said Ana Knežević, president of the Croatian Consumer Protection Association.

For consumers, the association argues, statistics matter less than what they actually pay at the checkout.

“Statistics mean very little to citizens. When people shop, they see how much they have paid—and how little they are actually able to take home.”