Common Agricultural Policy Slovak Republic

1
Common Agricultural Policy Slovak Republic

• Nitra, 1st August, 2007

2
Accession Negotiations

• the agricultural chapter was the most difficult,
  complicated and conflicting of all
• negotiations started 1 year later for the
  Helsinki group (Slovakia, Latvia and Lithuania)
  on 12th June 2001
• 3 areas
• 1. CMO
• 2. veterinary and phytosanitary legislation
• 3. financing

3
Negotiation requests

• 43 including 6 transitional periods, 7 exceptions
  from the application of the EU legislation and 30
  requests related to direct payments and quotas
• in the final stage of negotiations only 24
  request including 2 transitional periods
• decreasing the number did not mean that Slovakia
  was retreating from its original position

4
3 stages of negotiation

• Technical meetings with the EC
• - expert level
• - high level
• Informal negotiations with the PRES
• Copenhagen Summit

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4 Priorities

• increase of quotas for milk, isoglucose, premium
  rights for suckler cows and she-goats
• increase of area production for arable crops and
  the reference yield
• increase of allocation for rural development
• recognition of Tokaj wine

6
Great agricultural potential

• By accession of 10 NMS to the EU
• the total number of farmers increased from 7 to
  10 million
• the total UAA increased by 38 million hectares to
  130 million in the current 25 MS (30 increase)
• production increased only by 10 - 20
• gross value added for agriculture increased only
  by 6
• significantly less pesticides and artificial
  fertilizers are utilized
• increased market with 454 million consumers

7
A new era of the Slovak agriculture

• Agriculture as one of the 3 priorities of the
  Slovak government
• - top-ups in 2007 increased up to the maximum
• (1,2 billion SVK)
• Better marketing as 1 of the goals of the
  Ministry
• Organizational changes
• - 2 new sections created within the Ministry
• - change of the title of the Ministry foreseen

8
Present situation

• Discrimination of the Slovak Farmers
• Lower direct payments than in EU-15
• Lower top-ups than in neighboring countries
• Rural Development funds used for top-ups up to
  the maximum level
• Lower state aid

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State Aid
10
Trade Balance
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The main message for the future

• Equality of chances
• no differentiation
• equal treatment for all
• partnership of MS
• better cooperation for mutual benefit
• not only common, but single policy

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Level of knowledgeabout the CAP reform
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Challenge ahead

• Decisions on the existing 2003 CAP reform not yet
  taken at the national level
• - starting date ???
• - decoupling ???
• - regionalization ???
• Sufficient advance preparation needed for the
  Paying agency and for the farmers to adapt!!!

14
Slovak position on the future of CAP

• Prognosis of the development of the Slovak
  agriculture, foodstuffs, forestry and rural
  development
• Ministry of Agriculture in cooperation with
  Research Institute of Agriculture and Foodstuffs
  Economics
• cooperation Slovak Academy of Sciences, Slovak
  Agricultural University, Slovak Technical
  University, research institutes and NGOs
• Deadline December 2007

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Future CAP

• European agriculture needs to clearly define its
  strengths and weaknesses
• the driving force for reform should not be budget
  restrictions and enlargement
• solidarity is not priority any more
• CAP must survive for political reasons, otherwise
  EU might loose its grounds
• EU should create an ad hock expert group

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Future CAP

• policy based on consumer needs and concerns
• market oriented agriculture
• quality products and food safety
• competitiveness
• long-term stability
• maintaining the agricultural activity
• non-food production energy crops
• vital rural areas
• minimal burden on farmers

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Future CAP

• impact of WTO negotiations
• global aggressive marketing
• globalization food chains (to respect eligible
  interests of local producers)
• population growth
• natural resources water as the limiting factor
• discussion with farmers and society
• new policy adopted on the basis of whole
  society consensus

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Huge task ahead

• general public consensus necessary
• position of agriculture in the society is
  determined by the public views
• the main task ahead is to persuade the society
  why the agriculture is
• so important for them,
• for their maintained countryside,
• environment and for their health
• use only arguments with scientific background

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To conclude

• Slovakia is a rural country
• 65 of the UAA represents LFA
• 26 are mountain areas and
• 27 are grasslands and pastures
• greater emphasis on pillar 2
• agriculture is the main economic activity in the
  rural areas where the unemployment is high
• EMPLOYMENT and RURAL ECONOMY DEVELOPMENT are the
  key issues currently addressed by the Ministry

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Thank you for your attention!

• Contact
• Marieta Okenkova
• Director General
• Section for International Coordination and Trade
  Policy
• Ministry of Agriculture of the Slovak Republic
• marieta.okenkova_at_land.gov.sk