Financial Performance of Fishing Cooperatives in the Republic of Croatia

Abstract

Fisheries are a strategic sector of the economy in the Republic of Croatia and an important driver of development, particularly in the Adriatic Croatia, with fishing cooperatives representing a significant business segment within it. A fishing cooperative is a specific type of cooperative whose primary activity is fishing, while the activities of its members include commercial fisheries, farming, and processing of fishery products, including their placement on the market. In accordance with specific regulations, fishing cooperatives in the Republic of Croatia must contribute to the ecologically sustainable exploitation and protection of marine biological resources and ecosystems, strengthen the competitiveness of producers in fisheries and aquaculture, improve market transparency by providing relevant information to consumers and ensuring product traceability, secure market stability through production planning and supplying consumers with quality and healthy food, improve skills, working conditions and occupational safety, encourage innovation aimed at the development of the blue economy, and foster both national and international cooperation. The aim of this study was to determine the financial performance and business stability of fishing cooperatives in the Republic of Croatia in the period from 2018 - 2023. A financial analysis was conducted on nine active fishing cooperatives over the analysed period. Financial performance was assessed using indicators of liquidity, activity, indebtedness, efficiency and profitability, while business stability was evaluated using the revised Altman Z-score model for privately held companies. The results of the financial analysis indicate relatively sound financial performance and business stability for the majority of fishing cooperatives throughout the analysed period.