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Marijan Balić from Ilača Proved That One Can Make a Living from Garlic: Earnings Up to €17,500 per Hectare

OPG Balić produces up to 150 tons of garlic annually, and a recognizable brand and new regulation on origin labeling have further boosted their sales.

Foto: Wikipedia (Ilača)
Summary
  • OPG Balić from Ilača produces up to 150 tons of garlic annually and employs eight permanent workers.
  • The new regulation on displaying the country of origin boosted sales of their domestic garlic.
  • According to official calculations, gross income from garlic cultivation can reach €17,500 per hectare.
  • The biggest challenges in production are cheaper imports, climate change, and fragmented land.

While many farmers struggle with unprofitable production and the pressure of cheap imports, OPG Balić from Ilača has been successfully building a story around domestic garlic for over a decade. Their product is now a familiar sight on supermarket shelves across Croatia, with annual production ranging between 120 and 150 tons on 20 to 25 hectares.

OPG owner Marijan Balić reveals that it all started almost by chance during a trip to the Czech Republic. "A gentleman told me: 'Try garlic, there's none of that. You see nobody grows it.' I came back, researched the market, and said we'll give it a try," Balić recalled for Agro klub. Today, the family farm boasts a packing facility and warehouse with a capacity of 200 tons, employing eight permanent and seven to eight seasonal workers.

Recognizable Brand and Sales Growth

One of the key reasons behind OPG Balić's success lies in building a recognizable brand and maintaining constant communication with customers. Balić notes that people have started associating garlic with their name, often reaching out via social media for advice or to comment on the product. "Someone sees it on the shelf and immediately knows what it's about," says Balić, adding that one customer even sent them a poem dedicated to their garlic.

An additional boost for domestic producers came from the new regulation by the Ministry of Agriculture, which took effect at the beginning of this year. The regulation requires that the country of origin be displayed as prominently as the price for loose fruits and vegetables. "Our sales have slightly increased since the new rules were introduced, and above our onions, it says they're from Croatia," Balić confirmed.

Dealing with Imports and Climate Change

Despite strong demand-because "Croats really love garlic," as Balić puts it-the biggest challenge remains competing with cheaper imports. "The market is full of all sorts of things. Imports put pressure on us because goods come from abroad and are often cheaper. We are generally extremely uncompetitive, and that's our biggest problem," warns the OPG owner.

In addition to market competition, production is increasingly hampered by climate change. Prolonged droughts and high temperatures have made irrigation essential, so OPG Balić now irrigates around 15 hectares. "If we had the means, we'd cover more," says Balić, but notes that expanding the system is difficult due to fragmented land. "We have a hectare here, half a hectare there. With such irrigation and such crops, it's hard to consolidate the plots," he explains.

Family Business and Modern Agriculture

The whole family is involved in the business. His wife, who previously worked in banking, now handles finances and administration. "She manages the finances, payroll, and all the necessary paperwork," said Balić, which allows him to focus more on the production itself.

In addition to garlic, they have been offering shallots for the past two years to diversify their range. Balić emphasizes that in today's world, producing quality food is not enough. "In modern agriculture, it's no longer enough just to produce. You also need to know how to sell, promote, and organize the entire system," he advises.

Is Garlic Cultivation Profitable?

According to the official calculation by the Advisory Service of the Ministry of Agriculture, garlic cultivation is one of the most profitable crops in Croatia. Total gross income per hectare amounts to €17,500, with a yield of 5,000 kilograms per hectare. Balić stresses that it's also crucial for consumers to read labels and choose domestic products. "Read the label, see where the product comes from. That way, you help our agriculture, create new jobs, and support further investments," he concludes.

FAQ
What is the annual garlic production at OPG Balić? +
OPG Balić produces between 120 and 150 tons of garlic annually on 20 to 25 hectares.
What is the potential earnings from garlic cultivation per hectare? +
According to the calculation by the Advisory Service of the Ministry of Agriculture, total gross income per hectare amounts to €17,500, with a yield of 5,000 kilograms.
What helped OPG Balić increase sales? +
Sales increased after the new regulation requiring the display of the country of origin on fruits and vegetables came into effect, making it easier for customers to recognize their domestic product.
What are the biggest challenges faced by OPG Balić? +
The biggest challenges are the pressure of cheaper imports, climate change requiring irrigation, and fragmented land that hinders production expansion.

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