PART V. HOW WILL THE
CAP APPLY TO NEW MEMBER STATES?
On
May
1,
2004,
ten countries in central and eastern Europe - Cyprus, Czech
Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland,
Slovakia, and Slovenia - joined the European Union, bringing the
total number of member states to
25
(EU-25).
Enlargement adds
74
million new consumers to the EU’s
380
million, brings another
4
million farmers to the
7
million currently producing a major portion of Europe's food,
and increases the
130
million hectares of currently utilised agricultural area by
38
million hectares, an increase of
30%.
Agricultural production in the EU is expected to increase by
about
10-20
% for most products. However, the gross value added of
agriculture will only increase by
6
%. These numbers indicate that the agricultural production
potential of the new member states is not being fully used.
Agriculture in these countries has many deficiencies and
requires substantial restructuring and modernisation before it
reaches a par with the western European countries. It is plagued
by low productivity and hidden unemployment.
The
2004
enlargement of the EU presents great challenges to the Common
Agricultural Policy. Agriculture accounts for a large part of
the economies of the new countries. Overall, about
7%
of the gross domestic production of the new countries is derived
from agriculture, while in the
EU-15
countries the comparable figure is
1.6%.
While the EU-15
is already the most important trade partner in agricultural
products for many of the new member countries, enlargement
offers them considerable opportunities to use their potential
for agriculture production more efficiently.
Integration should lead to greater prosperity for EU farmers as
a whole in both the old and the new member states. Competition
for agricultural products is expected to increase, but the
larger market - free of tariff restrictions, export quotas or
trade barriers - will create positive opportunities and provide
greater stability to previously volatile agricultural markets.
Older, less efficient farms may be threatened, but rural
development measures should reduce this risk. More competition
will ultimately benefit both EU-15
farmers as well as those in the new member states. On the one
hand, many farmers in the new member states may try to target
the relatively high-income consumers in the EU-15
who demand high quality products; on the other hand EU-15
farmers know that the predicted income growth in the new member
states will lead to growing markets for meat, fruit and
vegetables, fresh milk products and cheese. All farmers have to
realise that developments in world markets will become an
increasingly decisive factor for the agricultural market
outlook. With the assistance of the CAP,
EU-25
farmers will gradually develop a sustainable level of
agricultural production.
Some
of the new member states have increased competitiveness in
poultry production, mainly due to foreign direct investment.
Much of this new poultry production is expected to go to western
European countries. Other opportunities might arise in the area
of low cost cultivation of feed cereals and other renewable raw
materials. Less positively, a proportion of pig meat production
in the new member states will be handicapped in the wider market
by a quality disadvantage - lean meat content and lower feed
efficiency.
Looking beyond the short-term, the Commission predicts a rapid
convergence of the agricultural economies in the existing and
new member states. The new member states will not be condemned
to be producers of low-cost food and feed while others corner
all the high value markets. Furthermore, the extended EU will
have new neighbours and trading partners such as Russia, and
will be able to play a strong role on world markets, including
the far eastern markets, which hold a huge potential.
A. SAPARD
In
order to assist in the adjustment of agricultural policies in
the new member states in Central and Eastern Europe, the EU
adopted the
Special Accession Programme for Agriculture and Rural
Development
(SAPARD) scheme, which was developed within the framework of
Agenda
2000.
SAPARD was a
targeted programme that has channelled
€
1.33
billion into the farm sectors of the accession countries over a
four-year period, to help their rural areas prepare for
integration into the common agricultural policy. SAPARD came
into effect on January
1,
2000,
and is budgeted until the end of
2006,
although candidate countries may only benefit through SAPARD
until the time they join the Union. In addition, a specific
accession package was agreed for agriculture and rural
development in the new member states in Copenhagen in
2002
to boost the integration process. It includes an enhanced rural
development package in which more than €
5
billion has been made available for the
2004-2006
period to support a range of support instruments, such as a
measure to convert semi-subsistence farms into viable holdings.
The
objectives of the SAPARD are:
-
to
establish a Community framework for supporting sustainable
agricultural and rural development in the applicant countries
during the pre-accession period;
-
to
solve problems affecting the long-term adjustment of the
agricultural sector and rural areas; and
-
to
help implement the acquis
communautaire in matters of the agricultural policy
and related policies.
The
underlying principle of SAPARD is to give farmers and
administrators the experience they will need to manage and apply
EU support programmes. The SAPARD programme was specifically
designed in such a way that the transition to EU rural
development programmes would be a relatively smooth process. The
new member states have identified the investment priorities for
their rural areas, which could include support to modernise farm
holdings, upgrading of processing and marketing equipment, or
vocational training to encourage rural diversification.
Direct support will be gradually phased in over a ten-year
period to give their agricultural sectors the chance to provide
for restructuring and allow them to adjust gradually to the
requirements of the CAP and EU membership.
Producers and consumers in the new member states will benefit
from the
2003
CAP reforms. Planning security, flexibility, market orientation,
and a focus on quality are all advantages secured by the latest
agreement to improve EU agricultural policy. Reform has created
a more stable and sustainable framework for farming and farmers
alike, ensures that agriculture is able to meet the ever
increasing standards and cater for the growing range of jobs
that society expects our farmers to fulfil. In addition, the CAP
has become more trade friendly and more acceptable to our
partners beyond our common borders.
This
reform was the final break in the link between support and
production a process called
decoupling. From
2005
onwards the current system under which a number of subsidy
schemes exist for the different market sectors will be replaced
with a single farm payment that is tied to meeting mandatory
food safety, environmental and animal welfare standards. The
start of this scheme may be delayed in certain cases until
2007.
Β.
Application of the CAP to New Member States
Each
new member state of the EU has undergone a period of intense
negotiations with the EU and has agreed to specific terms and
conditions relating to its accession to the EU. Upon accession
to the EU, each of the new member states is required to apply
the acquis communautaire,
or body of EU law, to its own national body of laws. Since the
CAP - including the reforms of
2003
- have been incorporated in the acquis communautaire, the new
member states will also adopt the CAP upon their accession to
the EU, replacing existing national programmes for providing
agricultural support. Each of the new member states must
establish their own internal procedures for implementing the
provisions of the CAP and providing financial assistance to
producers to the satisfaction of the EU. This includes an
inventory their agricultural lands and a registration of
farmers.
Specific management systems that must be established by the new
member states include designation of a
paying agency,
completion of the Integrated
Administration and Control System, and demonstration
of the capacity to implement rural development policies. The
acceding countries also must be ready to be integrated into the
common market organisations
for a range of agricultural products. In addition, detailed
rules in the veterinary field, which are essential for
safeguarding animal health and food safety in the internal
market, as well as in the phytosanitary field, including issues
such as seed quality, harmful organisms and plant protection
products must be adopted and applied.
Farmers in the new member states of the EU will be qualified to
participate in the direct
payment scheme from their first year of membership in
the EU. However, the amount of payments will begin at a lower
level (25%)
than the EU-
15
countries and will be phased in over a ten-year period. By the
year
2013,
the direct payment rates for farmers in the new member states
will be in alignment with the rest of the EU. New member states
have several options for augmenting the amount of the direct
payments in the early years of the programme, using their own
resources.
The
following is a brief review of the agricultural economies of
three new member states, Cyprus, Poland and Slovenia and the
measures each has taken to implement the CAP in their countries.
Cyprus
When
Cyprus became an independent country in
1960,
the backbone of its economy was agriculture, most of which
consisted of small farms. Irrigation projects in the
1960s
provided the basis for vegetable and fruit exports, and
increasingly commercialised farming was able to meet the local
demands for meat, dairy products, and wine. In the early
1970s,
Cypriot farms furnished about
70
percent of commodity exports and employed about
95,000
people, or one-third of the island's economically active
population.
The
political division of the island in
1974
also split the island’s agricultural resources.
Τhe
Turkish Cypriot community in the north received possession of
most of the citrus and cereal crops and green fodder, and all of
the tobacco. The south retained nearly all of the island's grape
growing areas, deciduous fruit orchards, potato crop and other
vegetables, carob trees, livestock population and about half the
island's olive trees. The division also caused a large-scale
exchange of the agricultural work force between the northern and
southern zones. In the years that followed, agriculture's
portion of the work force declined to
20.7
percent in
1979
to
15.8
percent in
1987.
Its contribution to the economy also declined, from
17.3
percent of GDP in
1976
to
7.7
percent in
1988.
In
the
1990s,
the Greek Cypriot economy became even more dominated by the
service sector. However, the island's favourable climate and its
location near its leading market, Western Europe, meant that
farming would remain an important and stable part of the overall
economy. Government irrigation projects, subsidies, and tax
policies encouraged farming's existence, as did research in new
crops and new varieties of crops already in cultivation. The
government also encouraged agriculture because it provides rural
employment, maintains village life and relieves urban crowding.
The Ministry of Agriculture,
Natural Resources and Environment is the governmental
agency responsible for the implementation of national policy in
the fields of agriculture, animal husbandry, natural resources
and the environment. Its main objectives are the improvement of
the farmer’s standard of living and the welfare of the rural
communities. The Ministry works for the restructuring of
agricultural production, the creation of financially viable
units, the introduction of modern technology and for the
creation of conditions which would contribute to the improvement
and increase of productivity. The Ministry is
assisted by its subordinate agencies, including the
Agricultural Research Institute,
the Veterinary Service,
the Meteorological Service,
and the Department of Water
Development.
Although agriculture is no longer the backbone of the Cyprus
economy, careful water management, the adoption of more modern
methods of farming, an increased emphasis on early production,
in which Cyprus has comparative advantages, and the larger
market that results from accession to the European Union, will
ensure that it retains an important position. The agricultural
sector currently employs
4,9%
of the labour force and provides materials for local industry.
It contributes
3,9%
of the GDP. The agricultural sector spans a diverse range of
activities that include animal husbandry, forestry, fishing and
crop production with potatoes, other vegetables, citrus, grapes
and cereals. The wide range of soils and unique micro-climates
in Cyprus also allows for the cultivation of strawberries,
cherries, apricots and kiwis, as well as subtropical varieties
such as avocados and bananas.
Agricultural exports to Europe are seasonally concentrated with
mainly citrus products exported in the winter and white seedless
and black grapes in the summer. In winter and early spring,
substantial volumes of new potatoes, carrots and beetroot are
exported. Recent years have also seen a major expansion of
out-of-season salads and vegetable exports to the European Union
including items such as okra and tomatoes.
The
EU’s SAPARD
programme has provided assistance to Cyprus for pre-accession
measures for agriculture and rural development. The application
of the CAP rules and their effective enforcement by an efficient
public administration are essential. This included the setting
up of management systems such as a
paying agency and the
Integrated Administration and
Control System (IACS), and also the capacity to
implement rural development
actions. Cyprus must be integrated into the
common market organisations
for a range of agricultural products, including
arable crops, fruits and vegetables, and meat.
Cyprus has been granted a transitional period to provide certain
supplementary state aids until
2010.
Much state aid is channelled through the common market
organizations that exist for almost all agricultural sectors
(but not potatoes, an important crop in Cyprus). Farmers that
produce cereals such as barley receive a direct income support
per sector based on reference quantities to be defined by the
authorities. Cattle and sheep farmers will receive beef premia,
slaughter premia, ewe premia and additional payments. Milk
producers will receive an individual milk quota, which provides
a guaranteed income according to the quality of the produced
milk and a premium per tonne of milk. There is support for olive
oil producers based on a guaranteed quantity for olive oil and
for several other sectors.
Cyprus has prepared to meet its commitments under the
acquis communautaire
CAP provisions
regarding the Integrated
Administration and Control System (IACS), quality
policy and organic farming, the
common market organisations
(CMOs) - covering arable crops, fruit and vegetables, wine,
olive oil, bananas, milk, beef, sheep and pigmeat, and eggs and
poultry - and rural
development policy.
In the veterinary and phytosanitary field, Cyprus is essentially
meeting the requirements relating to animal disease control
measures, trade in live animals and animal products, animal
welfare and zootechnics.
Efforts are still needed in the fields relating to
Farm Accountancy Data Network
(FADN), veterinary control systems in the internal
market, TSE and animal by-products (as regards collection of
cadavers), public health (as regards upgrading of agri-food
establishments), common measures (as regards residues), animal
nutrition and phytosanitary (as regards plant passports).
Cypriot farmers will receive their share of the so-called
“guarantee support” in a very practical and simple manner, i.e.
through a single area payment
for each hectare of agricultural land kept in good agricultural
condition. In addition, certain payments such as for assistance
to producer organizations in the fruit and vegetable sector, aid
for citrus destined for the production of juice, aid for
restructuring vineyards etc, will be paid to Cypriot farmers in
addition to the single area payment.
The EU has approved very substantial funds to promote
rural development in
Cyprus. The EU considers that the farmer’s work has the added
value of protecting the environment and supporting rural
economic development. Each European farmer of an acceding
country will be given financial aid not only to modernise
production, promote alternative income schemes such as
agro-tourism and local handicrafts but also to implement
agri-environmental projects.
These funds will be available under the Rural Development
Programme for the period
2004-2006,
which has a total budget of over
€
150
million, of which
€
75
million will come from community funds. On May
11,
2004,
an EU committee approved the allocation of a further
€
143
million to Cyprus for rural
development.
Poland
Among
the new member states, Poland has the most important
agricultural sector, with nearly one fifth of its population
employed in agriculture. With
2.9
million farms, Poland accounts for about a third of all the land
under cultivation in the new member states. Poland estimates it
has about
16.2m
hectares of farmland.
Agriculture accounted for
2.6%
of GDP in
2002
but employed
16.5
percent of Poland’s labour force. Crop yields remain low because
of low input use and unfavourable weather patterns in some
recent years. Overall productivity growth is held back by the
slow progress in consolidating Poland’s small, fragmented
private farms.
The most important crop in Poland is wheat, followed by rye and
rapeseed. Other major
crops include potatoes, fruits, vegetables, wheat, poultry,
eggs, pork and beef.
Approximately
8
million to
9
million tonnes of wheat and
5
million to
6
million tonnes of rye are produced each year. The principal
livestock product is pork, which accounts for
70
percent of the
2
million to
3
million tonnes of meat produced each year. Principal exports are
rapeseed, live cattle, processed meat, fruits and vegetables.
The main imports are grains, meat, protein meal and cotton.
Poland is a net agricultural importer, with agricultural
products accounting for approximately
11
percent of total imports and
10
percent of total exports. The EU accounts for approximately
65
percent of Polish trade of agricultural and food products, while
the independent states of the former Soviet Union account for
about
19
percent of Polish trade, and Hungary, the Czech Republic and
Slovakia account for about a further
3
percent.
At least half of Poland’s farms produce mainly for
self-consumption; many landowners are reluctant to sell due to
uncertainty about alternative employment. Even during the period
of central planning, Polish agriculture was dominated by more
than
2
million small farms, averaging
5
ha in size. The private sector farmed about
80
percent of the agricultural land and produced almost the same
percentage share of output. The process of consolidation begun
in
1989
has been quite slow – the average farm size has increased to
5.76
ha. Nonetheless, there is a growing class of commercially viable
farms.
For
the most part, Poland is meeting its commitments resulting from
the accession negotiations. The
Agency for Restructuring and
Modernisation of Agriculture (ARMR) is the
governmental agency in Poland that has responsibility for direct
payments and rural development. Poland has experienced some
difficulty in completing implementation of the
Integrated Administration and
Control System (IACS) due to problems in staffing and
an inadequate land use database. The
Agricultural Market Agency
(AMA) is responsible for market mechanisms (CMOs) and
trade mechanisms (tariffs). Quality issues are the
responsibility of the
Agriculture and Food Commercial Quality Inspectorate.
Poland has decided to apply the
single area payment scheme
(SAPS) in the first years after accession. Poland and
the other new member states will gradually phase in EU
agricultural direct payments, starting from
25
per cent of existing EU levels this year and reaching
100
per cent in
2013.
Poland estimates that its
14.8m
hectares of farmland will receive a total of €
659.8m
in payments for
2004.
This amounts to about €
44.5
per hectare. Additional subsidies are also available for growers
of tobacco, hops and some other plants.
Poland's farmers have been slow in signing up for the
agricultural subsidies. The
ARMR has been conducting a nationwide campaign to educate its
farmers about the programme. Scepticism about the benefits of EU
membership appears to be deeply rooted, particularly among
conservative farmers with small plots of land.
Slovenia
Formerly part of Yugoslavia, Slovenia became an independent
nation in
1991.
The population is almost
2
million, of whom
47,000
or
2%
are engaged in agriculture. This represents almost
10%
of the employed labour force. Slovenia has the second highest
per capita GDP of all the acceding states, after Cyprus.
Slovenia’s agricultural policy has the following goals:
-
ensure stable production of quality, low-priced, safe food;
-
preserve population density and cultural landscapes;
-
preserve agricultural land;
-
protect agricultural land and waters from pollution and
unreasonable uses;
-
increase the competitiveness of agriculture; and
-
ensure parity income to those producers with above-average
production.
Slovenia’s farm structure comprises about
92,000
small and mostly part-time private farms averaging
3.5
ha that own or lease about
92%
of the agricultural land and produce about three quarters of
total farm output. The rest is produced by large agricultural
companies on the remaining
8%
of farm land. Arable land and permanent crops occupy
285
000
ha, permanent pastures
502
000
ha and forests
1.1
million ha. The main crops are maize, wheat, potatoes, fruits,
vegetables, and hops. Slovenia has a long tradition of
seed production and trade, particularly for cereals, maize and
sugar beet.
Slovenia’s economic policy has been shaped by the preparations
for its entry into the EU. The
Programme of Agricultural Policy
Reform (1999-2002)
serves as a framework for the harmonisation of EU and domestic
policies, and the gradual reduction of trade protection and
price regulation (e.g. the break-up of the state monopoly in the
bread cereal market). The CEFTA (Central Europe Free Trade
Agreement) introduced duty-free and quota-free provisions for
various items including durum wheat and oilseeds and
preferential tariffs for wheat, barley, flour and selected
vegetables and fruits. Financial constraints and lack of
adequate institutional framework are delaying the structural
adjustment of the agricultural sector, intended to raise
agricultural productivity and incomes.
Slovenia was well prepared for its accession to the EU on May
1,
2004.
Slovenia’s accession negotiations with the EU in the field of
agriculture began in
1998
with a one-year screening of Slovenia’s legislation for
alignment with European law and were concluded in December,
2002.
Slovenia began implementation of direct payments and other
measures comparable to CAP policy prior to its accession to the
EU. The Slovenian
Αgency
for Agricultural Markets and Rural Development
is
the governmental agency that was responsible for the
SAPARD programmes and
that will implement CAP measures, including setting market
policy, establishing data bases, and promoting agricultural
markets. An Integrated
Administration and Control System (IACS) has been
developed and used for national direct payments. With a high
degree of compatibility with the acquis, Slovenia has only a few
transitional periods and derogations from the EU law. A high
priority is placed on the second pillar of the CAP,
rural development.
Other
governmental agencies of the Republic of Slovenia that will take
part in implementing applicable provisions of the CAP are:
-
the
Veterinary Administration;
-
the
Inspectorate for Agriculture, Forestry, Hunting and Fisheries;
-
the
Inspectorate for Quality Control of Agricultural Products and
Foodstuffs;
-
the
Administration for Plant Protection and Seeds; and
-
the
Office for the Recognition of Agricultural Product and Foodstuff
Designation.
In
the Czech Republic, over half of the arable land is planted to
cereals, mainly wheat and barley, and about a quarter to fodder
crops, mostly maize for cattle. Cereals, sugar beet and hops are
intensively cultivated, although agriculture plays a
comparatively small role alongside traditional engineering and
other industries. The country is well known for its
long-established tradition of producing high quality beer.
About
25%
of the population lives in rural communities with less than
2000
inhabitants. Of the agricultural land,
45%
lies in Less Favoured Areas (LFAs) with natural handicaps such
as hills and mountains. Unfortunately, in
1997
and
2002
major floods caused extensive damage to widespread rural areas
across the country and to cities, including Prague. Three new
forms of farming have emerged with the privatisation of Czech
agriculture: transformed coops, other companies of joint stock
or limited liability and individual farms.
The
EU is the Czech Republic’s biggest trading partner with a share
in Czech exports of around
35%
and in Czech imports of around
50%,
although with a declining tendency for both in the last few
years. The main agriculture export items are dairy products, and
beverages and oilseeds, which account for about
35%
of export value. The main import items are tropical fruit and
animal feed, which together account for over
20%
of imports.
The mission of the Ministry of Agriculture is to build up a
competitive agriculture and food sector capable of selling
commodities in challenging foreign markets. The Ministry
administrates the Czech Agricultural and Food Inspection, the
State Board of Veterinary Care, the State Board of Plant-Care,
the Central Inspection and Experimental Institute of
Agriculture, and the Czech Inspection for Improvement and
Breeding of Farming Animals.
The main institution for market support is the State Fund for
Market Regulation (SFMR). In the mid
1990s
support was mostly limited to wheat and dairy products. Recently
the SFMR has introduced more indirect forms of intervention
through the Support and Guarantee Fund for Farmers and Forestry
(SGFFF), which mainly deals with structural adjustment.
In
order to meet its commitments under the acquis communautaire,
the Ministry of Agriculture has implemented many reforms in the
agricultural and fisheries sector and has adapted its market and
structural policy instruments. It has reinforced the
institutional and administrative capacities regarding
agriculture, including the veterinary and phytosanitary sectors.
Agricultural legislation has been aligned with the acquis and it
has introduced management structures for the CAP by setting up
state aid to fisheries. The Czech Republic is implementing some
common organisations of the markets and most of the preparations
in the field of animal disease control have been carried out.
The
Czech Republic is on the whole fulfilling its commitments. There
may be some more work ahead in the case of the paying agency,
the Integrated Administration and Control System (IACS), and in
the areas of trade mechanisms and common market organisations
for sugar, wine, beef and veal.
Aside from meeting the requirements of the acquis
communautaire, the Czech Republic will have to address certain
issues related to agriculture and the environment, including
erosion and manure disposal in areas with a heavy concentration
of animal production.
Additional References:
Link
Ministry of Agriculture of the Czech Republic
In
Estonia the percentage of land used for agriculture is small.
Most of the farms are mainly concentrated in the southeast, the
west, and on the islands. These areas have traditionally had
extensive agriculture due to their advantageous natural
conditions although crop yields are often affected by weather
variations. Arable land and permanent crops cover
1.1
million hectares and the main crops grown are spring barley,
oats, spring wheat, winter rye, potatoes, legumes, field grasses
and annual fodder crops. The rural population of Estonia
constitutes
30%
of the total population.
The
food industry is the largest industry in Estonia. The most
important branches are the dairy industry, the meat industry,
and the fish industry. Estonian fishing activities take place in
the Baltic Sea inland waters and offshore in the Atlantic Ocean.
Overall agricultural trade between Estonia and the EU has
increased significantly. Exports of agricultural products, which
are dominated by dairy products, increased by
38%
while imports increased by
11%.
The
Ministry of Agriculture has continued to make steady progress in
this sector, both in aligning legislation and strengthening
administrative capacity, as in the case of the IACS and the
paying agency. To complete preparations for membership, Estonia
focused on implementing common market organisations price
support measures, reinforcing the administrative capacity to
implement and enforce CAP regulations, in particular in the
veterinary field and food safety area; completing legislative
alignment; and ensuring that establishments are duly upgraded to
meet Community standards. Regulations of the Ministry of
Agriculture were adopted covering public health issues,
registration of dealers and artificial insemination. In the
phytosanitary sector, important steps have been made in
transposing and implementing legislation and all framework laws
have been adopted. The Fisheries Information System, and
structural and market policies have been set up.
Regarding food safety Estonia is well advanced,
particularly regarding the upgrading of food establishments.
Work still needs to be done in the area of animal welfare.
The
Ministry is the governing authority for the CAP and the SAPARD
programme. The SAPARD programme focuses on improving the
competitiveness of agriculture and the agri-food industry, rural
regeneration and sustainable development, and facilitating
effective programme implementation. These include a major effort
to promote investments in Estonia's agricultural sector to
ensure compliance with EU hygiene, veterinary, sanitary, food
quality, animal welfare and environmental standards. A specific
measure is also included aimed at restructuring the
food-processing industry. Estonia has made considerable progress
in these areas in the past two years.
Additional references:
Ministry of Agriculture, Estonia
http://www.agri.ee/eng/
http://www.agri.ee/SAPARD/En/index_RDP.htm
International Monetary Fund Website
http://www.imf.org/external/np/sec/pn/2002/pn0268.htm
Hungary is an arable, production-centred country. Due to the
relatively flat landscape, favourable climate and fertile soil,
Hungary produces a variety of agricultural products, including
cereals, vegetables and fruit. More than
50%
of this land is dedicated to cereals. Of the cereal crops,
maize, wheat, and barley are the most important. Sunflower and
industrial crops, such as fibre plants and tobacco, have a
relatively high proportion in land use. Livestock farming is
also important within this sector, and dairy cattle, horses,
sheep, poultry, and fur-bearing animals are all raised
commercially. Crops are grown at a relatively high technical
level. For some crops and in years with favourable weather,
average yields per hectare may be comparable with those of
leading European countries. However, the development of crop
production is hindered by limited financial resources for higher
inputs.
In order to meet the requirements for accession, Hungary
concentrated its agricultural reform on particular areas of
concern. It focused on setting up the administrative procedures
for trade mechanisms, preparing CMOs for wine and sugar,
implementing legislation for animal waste treatment, and
creating legislation for veterinary control systems, residue
controls, and phytosanitary measures. Hungary made substantial
progress especially in regards to the Farm Accountancy Data
network (FADN), state aid, quality policy and organic farming.
In the area of fisheries, additional staff is needed to adopt
and administer a coherent policy and to set up producer
organisations.
The
Ministry of Agriculture and Rural Development administers the
SAPARD programme, the goals of which include improving the
competitiveness of the agricultural sector and processing
industry, enhancing the adaptation capabilities of rural areas,
and improving environmental protection. During the period of
2000-20006,
the EU will contribute €
38.7
million to Hungary.
For
the period subsequent to accession, Hungary will focus on the
preparation of a rural development strategy. A National Forestry
Programme, co-ordinated with the Rural Development Programme
remains to be completed as does the forest registry. The
existing agri-environment system should be further developed.
Land reform is still an issue of major concern for Hungary’s
agriculture.
Additional resources:
Ministry of Agriculture and Regional Development, Hungary
Food and Agriculture Organisation
The
main products of Latvian agriculture have traditionally been
milk, meat, grain, crop, sugar-beet and vegetables. Today, only
the production of sugar-beet has stayed at the level of the past
decades. Milk, egg and total crop production has contracted by
half and livestock and meat production is only one-fourth of
previous levels. The agricultural sector is fully privatised,
and composes of a large number of small farms.
Beginning in the second half of the
90s,
several agricultural and rural development programmes were
introduced through the EU, such as SAPARD, and the World Bank.
Exports to Europe and Russia are of significant importance to
Latvia. Despite protection, the agricultural sector is able to
supply only two thirds of the domestic demand for meat and as a
result, the rest is imported. Of the number of total exports,
61%
are sent to Europe and more than
50%
of total imports arrive from the EU.
The Ministry of Agriculture has implemented many reforms to meet
acquis and CAP agricultural requirements. The IACS, the Farm
Accountancy Data Network (FADN),
and the paying agency were all set up. Work still
needs to be done on.
It has focused on animal health, inspection at borders,
protection of public health and animal waste treatment, has
reinforced its administrative capacity and has incorporated
related legislation. Animal welfare is now completely aligned
with the EU. Latvia also reformed the structural measures and
market policy for fisheries, including alignment of domestic
legislation. One example was the adoption in
2001
of a regulation governing supervision of landings and sales of
catches, transport of fishery products and storage and
production premises. Greater resources have been channelled into
the National Fisheries Board and the Marine Environmental Board.
The transposition and implementation of veterinary and
phytosanitary measures, including food safety legislation has
been well-organized. Programs in rural development and forestry
are continuing to be implemented. Plant health transposition and
implementation are well advanced, as is the process of
instituting control procedures at borders. Issues of food safety
have also made significant progress.
Additional resources:
Ministry of Agriculture, Republic of Latvia
http://www.zm.gov.lv/index.php?language=2
Lithuania is known as the “Baltic Tiger” because of its rapid
economic growth, of which a significant amount is attributable
to its agriculture and food sector. It is fortunate to have
agriculture-favourable natural relief and climatic conditions.
The most common agriculture products of Lithuania are cow milk,
wheat, potatoes, barley, and sugar beets. The total land area of
Lithuania is
6.53
million hectares with
60%
dedicated to agricultural purposes. Today, three types of farms
are prominent in Lithuania: farmers' farms, agricultural
companies, and family farms. The number of farmers increased by
64
percent over year
2003.
Dairy
products comprise roughly a quarter of all exports, while
exports of forage for animals make up
17%
and grain export
12%.
Fish and fish products are also exported but these are
decreasing. Products such as spices, coffee, tea, and certain
fruits and vegetables that are not produced in Lithuania are
imported.
Lithuania has set up market-organisation regimes for its
agricultural products, its paying agency, the IACS, and various
trade mechanisms. In the veterinary field, efforts have been
made to improve monitoring of transmissible spongiform
encephalopathies (TSEs) and animal by-products. The same is true
for the animal welfare and phytosanitary measures. Lithuania has
also met its commitments in the areas of state aid and
international agreements. The number of staff administering the
Financial Instrument for Fisheries Guidance (FIFG) has
increased, its administrative capacity expanded and the fishing
vessel register has been established. In the area of
environmental protection, Lithuania has passed legislation
concerning reduction of the pollution of waters caused by
nitrates from agricultural sources to meet EU pollution level
requirements.
Lithuania will receive more than
12
million euros in funding through the SAPARD programme between
2000-2006.
The programme addresses seven areas:
agricultural production, processing and marketing
agricultural products, diversification of economic activities in
rural areas, infrastructure, forestry, environmentally friendly
agricultural methods, and human resource development.
Additional resources:
Ministry of Agriculture of the Republic of Lithuania
2004
http://terra.zum.lt/agri04/03.htm
http://europa.eu.int/scadplus/leg/en/lvb/e04105.htm
Part-time farming is very common in Malta and figures continue
to increase – today more than
80%
of farmers are part-time farmers. Maltese agricultural land
accounts for about
12,000
hectares of which
6%
is irrigated land. Lack of water represents a natural limit for
the expansion of agriculture. Nevertheless farmers succeed in
producing a wide variety of products. Malta continues to protect
agricultural land through the creation of rural conservation
zones and undertakes efforts to transform more dry land into
irrigated land.
Malta produces a number of products, including arable crops,
fruit and vegetables, and wines and spirits. Other products
include milk and various meat products from cows, pigs, sheep
and goats. Potatoes are the main export crop, though flowers
tomatoes and strawberries are also exported. Malta is
implementing a new policy that will more than double the land
currently available for growing grapes for quality wine to
1,000
hectares. The fisheries sector comprises a small portion of
economic activity, of which
95%
of the production is exported to EU member states. The
bee-keeping industry, renown from ancient times, is still
thriving
The
Ministry of Rural Affairs and the Environment handles all issued
related to rural development, agriculture, afforestation,
horticulture, fisheries and veterinary and animal welfare
services. In preparing for accession, Malta organized the
necessary measures for creating and operating administrative
structures responsible for the CAP and rural development policy.
Malta has met essential commitments for the farm accountancy
data network (FADN) and the common organisations of the markets
in wine, fruit and vegetables, and beef and veal. Veterinary and
plant health legislation has been aligned with the acquis,
improving inspection arrangements particularly at external
borders. The fleet register was brought up to compliance. Some
additional work may be required for the paying agency, the IACS,
trade mechanisms, animal by-products and TSEs. The adoption of
the CAP is expected to improve capacity and efficiency of the
food processing export industry.
During the first three years of membership, it is expected that
the EU will provide about
30
million euros in assistance from its agricultural funds.
Additional EU funding will be allocated from Malta’s share of
the EU Structural Funds. Apart from direct subsidies, EU
assistance will also help the sector restructure and it will
support the implementation of Malta’s rural development plan
which will lead to Malta’s future agricultural policy.
Agricultural farming is widespread in three of the four regions
of Slovakia. Crop-farming and horticulture, including wheat,
barley, maize, oilseed, sugar beets, vegetables, and vineyards,
are concentrated in the southwest region. The pastures of the
northern mountainous region sustain only activities related to
cattle and sheep. Potatoes are grown in the central area of the
country.
Slovakia has worked hard to develop the means to implement and
enforce the CAP, in particular the basic management mechanisms
and the administrative structures required to monitor the
agricultural markets. Slovenia has aligned animal and plant
health legislation and improved inspection methods. With the
adoption of the new Veterinary Framework Act and the amendment
to the Phytosanitary Care Act, considerable progress has been
achieved. Slovakia also concentrated on meeting requirements for
inspections at external borders. Slovakia has upgraded the
administrative capacity at the Ministry of Agriculture, the
State Veterinary and Food Administration and the Central Control
and Testing Institute for Agriculture. Some further enforcement
of the proper institutional structures may still necessary. The
vineyard registration is currently being carried out. Overall,
the Accession Partnership priorities in the area of agriculture
have been met, but Slovakia still has some work ahead. The
system of veterinary controls on the domestic market,
arrangements for combating TSEs, and the rules on animal
by-products will require additional attention. Also, the
establishment of the IACS, will need to be finalized.
Between
2000-2006
Slovakia will receive over
18
million euros in assistance through the SAPARD programme. The
programme is based on three goals: improvement of the
agricultural production sector including food-processing
industry, increased sustainable rural development, and greater
human resources development. The programme aims to exploit the
opportunities available for the farm and food industry,
including the potential for the diversification of agricultural
production such as traditional specialities and organic
products.
Additional resources:
Ministry of Agriculture of the Republic of Slovakia
http://www.mpsr.sk/english/index.htm |
