ECONOMIC ASPECTS OF ORGANIC AGRICULTURE IN EAST CROATIA

Croatian agriculture tries to follow organic movement in Europe in last 15 years due to increasing demand for healthy food related to negative externalities of industry-like production which turned public attention to organic farming. Aim of this paper was to compare conventional and organic agriculture from economic point of view and to highlight the Current situation in Croatian organic agriculture as basis for founded decision making. Starting data are based on theoretical approach predicting optimal production Situation and the corrected regarding to actual situation and problems in Croatian agriculture. Results of researching confirmed expectedly lower yields (15-22%), while costs were significantly higher compared to conventional agriculture. Other analysis find out that organic farmers have many problems in their management. but they are generally satisfied with their occupation. To improve situation on Croatian organic market it is necessary to improve input market, to educate public as well as farmers and to ensure better logistics between government and producers.