PRICES OF MILK, MEAT, FRUIT AND VEGETABLES WON'T GO UP

ZAGREB, 9 Aug (Hina) - A Croatian Government decision to change customs duties on the import of 48 farm produce and food products prompted in the past three weeks a series of discussions on possible increase of prices of some food products, as well as dissatisfaction among those merchants who found out about the decision several days after its adoption. The decision was adopted on 14 July this year with the aim of protecting domestic manufacturers. The decision prompted several meetings between the representatives of the Agricultural Ministry, domestic food industry and traders' associations, which resulted in the conclusion that the prices of milk, meat, dairy and meat products and other domestic products will not be increased, if production costs (oil, gas etc) are not increased. In order to avoid causing damage to those traders who found out about its decision several days after its adoption, the Government decided not to implement the decision for goods imported on 14 and 15 July. The increase of customs duties was introduced for some dairy products, some sorts of fresh fruit and vegetables and fruit and vegetable products as well as for some products of confectionery industry. Customs duties on the import of cheese registered the highest increase within the group of dairy products. For example, for each kilogram of grated cheese or powder cheese one has to pay 10,53 kunas of customs duties (US $1,57). Considering the fact that this season has been registering an increase in the production of tomatoes, peppers, watermelons, peaches and nectarines, customs duties on the import of these products have been increased temporarily as well. Customs duties on the import of tomatoes have been increased from 1,40 to 2,30 kunas (from US $0,20 to 0,34); customs duties of 3,15 kunas per kilogram have been introduced on the import of peppers (US $0,45); on the import of watermelons 1,20 kunas (US $0,18); on the import of peaches and nectarines 3 kunas per kilogram (US $0,40). In order to help domestic confectionery industry and its competitive ability, the Government has increased customs duties on the import of some sorts of chocolate by around 2 kunas (US $0,29) per kilogram. Compared to 1996, this year's import of chocolate with cream fillings increased by 31% and of plain chocolate by 88%. At the same time, the prices of chocolate registered a decrease. Customs duties on the import of orange, lemon, pineapple, apple and other sorts of fruit and vegetable juices have increased from 1,25 to 1,65 kunas per kilogram (from US $0,18 to 0,24). The importers of plum and other sorts of jam will have to pay 2,20 kunas (US $0,32) of customs duties per kilogram. Commenting on importers' first reactions, Assistant Agriculture Minister Miroslav Bozic said that the reactions ranged from dissatisfaction to approval. The decision was approved by some serious importers who saw it as a way of introducing order on the market and removing products of low quality, Bozic said. Representatives of the leading food manufacturers supported the decision, describing it as a way of giving material and psychological support to domestic producers. The Agriculture Ministry will see that the decision is implemented, with the aim of enabling domestic production to cover the domestic market, protecting family farms and securing cheaper products for the final consumer, Agriculture and Forestry Minister Zlatko Dominikovic said. Explaining the reasons of the Government measures, the Ministry said that in six months the import of agricultural products had reached the amount of US $520 million, and export only US $263 million, despite the fact that Croatia has excellent conditions for the development of agriculture. The Government measures are not aimed at closing the domestic market for foreign goods nor at preventing the domestic consumer from buying foreign products. The Ministry holds that there is still space for lowering the prices of imported goods. (hina) rm 091154 MET aug 97