Analysis of competitiveness is a demanding process that includes data collection and comparison to the macro and micro economic basis. For the purposes of this study, an analysis of the available data on the production and processing of wheat in the Republic of Croatia and the European Union (desk research), 5th Region of eastern Croatian (130 samples of producers and processors of wheat 18 samples) and research offers wheat flour market Republic Croatian. Based on the collected data, an analysis of the structure of the samples according to different variables in accordance with the performed descriptive statistical analysis for ordinal variables and quantitative (the metering and interval). The data analysis were performed calculations using the cost competitiveness of domestic resources (DRC), and making analytical matrix (PAM). The calculation of separated coefficient (DRC), has not confirmed the competitiveness of Croatian wheat production for the reference year, the parity domestic prices. For the isolated segment of wheat also use of the method was determined neutral status of competitiveness to the DRC coefficient. Identified as possible the necessary adjustments to business standards, foreign trade, foreign trade protection and domestic support under the Common Agricultural Policy (CAP). Today was the evaluation of economic efficiency of the Croatian production and processing of wheat in a simulated conditions of the method of calculating the coefficient of the DRC; (maintenance of production at the current level; DRC production of 1.19 - not competitiveness, DRC processing 1 - neutral status, the level of reduction of 50% for both manufacturing factors; DRC production of 2.39 - not high competitiveness, DRC processing is not changed - neutral 1, minimizing the mill sector while maintaining the production of wheat on the same level; DRC production of 1.19 - not competitiveness, processing DRC 0.45 indicating a competitive business. Performed calculations showed mutual disekonomsku interdependence of production and processing of wheat in the Republic of Croatia, with a positive impact on the stability and sustainability of the business in rural areas. Based on the research it was found that the conditions for the quantitative and qualitative increase in the production and processing of wheat in the Republic of Croatia.