Podravka Agri, part of Croatia’s food and pharmaceuticals group Podravka, plans to increase its potato production area in 2026 following a cooperation agreement with domestic chips and snacks producer Kanaan.

The company said it will expand the area sown with potatoes for processing to 77 hectares this year and increase the area dedicated to table-stock potatoes to 52 hectares. According to the company, this represents more than a doubling of the sowing area for table potatoes compared with the previous year, alongside an expansion of production for processing.

Željko Erceg, board member at Podravka Agri, said in a press release: “This year, Podravka Agri will more than double the sowing area for table-stock potatoes and will expand production of potatoes for processing.”

All potato production will be concentrated at the fields of the company’s Belje unit in Baranja, eastern Croatia. Podravka Agri cited favourable soil quality and a newly deployed irrigation system as key factors underpinning the decision.

The proximity of the cultivation area to Kanaan’s potato processing factory in Donji Miholjac is expected to create operational synergies. Podravka Agri said the arrangement supports closer integration between primary production and processing, contributing to the development of eastern Croatia.

Reflecting on performance in the previous season, Erceg added: “Our last year’s yields of 55 tonnes per hectare exceed the average yields in the countries that are the largest producers of potatoes in the EU, so we are particularly optimistic about production this year.”

Shares in Podravka, listed on the Zagreb Stock Exchange, traded flat at €151 during intraday trading on Monday.