TRAINING SESSION IV EU Market Intervention EU Private Storage Technical Assistance for Development of a Strategy for Alignment with Common Market Organisation (CMO) Requirements TR2014/AG/10-A1-01/001 This Project is co-financed by the European Union and the Republic of Turkey TRAINING SESSION IV EU Market Intervention EU Private Storage Ankara, 14 May, 2018

EU financing rules Legal background: REGULATION (EU) No 1306/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL Establishes the European Agricultural Guarantee Fund (EAGF). It shall finance measures regulating or supporting agricultural markets (including market intervention and private storage).

EU financing rules Market intervention: - Member State agency buys up the goods and pays the price for market operators. Ownership of intervention stocks is on Member State, but the right to decide on the stocks is retained by the EU. - Member State also pays for storage of intervention stocks. - During storage the EU provides the Member States a uniform interest rate-reimbursment and a flat-rate reimbursment of physical operations (storing in, storing out and storage).

EU financing rules Market intervention (continued): - A balance is made after selling the intervention stocks, any deficit is reimbursed by the EU, any sufficit is paid by the Member State into the EU budget. Private storage: - Member State pays the storage aid in advance to operators. - After the private storage period is over and all necessary checks have been carried out, the EU reimburses the Member States.

The role of different state agencies /institutions and private organisations Ministry of Agriculture – responsible for all measures in relation with the European Agricultural Guarantee Fund (EAGF). Ministry of the Prime Minister – responsible for all measures in relation with the European Agricultural Fund for Rural Development (EAFRD). Agricultural and Rural Development Agency (ARDA) (now part of the State Treasury) – single paying agency.

The role of different state agencies /institutions and private organisations Agricultural Research Institute (AKI) – price monitoring, FADN, … Sectorial and Horizontal professional organisations: - all relevant information are shared. - they are always consulted when preparing a mandate for voting in Brussels.

Organization of the Ministry of Agriculture Total staff (as of November 2017.): 633 of which: executives: 144 non-executives : 489 County government offices: 19+1 offices (19 counties+capital)

Organization of the Ministry of Agriculture MINISTER State Secretary Secretary responsible for parliamentary issues Secretary responsible for state lands Secretary responsible for environment, development and hungaricums Secretary responsible for food-chain control Secretary responsible for agro-economic issues Departement of agro-economy Department of agricultural markets Department of agriculture Department of ARDA control and legal issues

Organization of the Ministry of Agriculture Department of agricultural markets Unit responsible for products included in the Single Common Market Organization of the EU Unit responsible for producer groups and interprofessional organizations Unit responsible for market development and market-politics 5 colleagues in total: 1 head of unit 2 staff for animal products 2 staff for plant products

Agricultural and Rural Development Agency

Agricultural and Rural Development Agency

Agricultural and Rural Development Agency European Agricultural Guarantee Fund (EAGF) Internal market measures External market measures Intervention Complementary national payments Direct Payments Other measures (NVT) European Agricultural Fund for Rural Development (EAFRD) European Fisheries Fund European Agricultural Guidance and Guarantee Fund (EAGGF) Guidance: ARDOP Pre-accession fund: SAPARD National measures

Agricultural and Rural Development Agency Number of registered clients: 550 000 Number of claims per year: 360 000 from which SAPS: 177 000 from which EAFRD: 50 000 Total area claimed for SAPS: 5 000 000 ha Total area approved for SAPS: 4 900 000 ha

Agricultural and Rural Development Agency

Agricultural and Rural Development Agency

Agricultural Research Institute (AKI) Founded in 1954. AKI is the most important centre of agricultural economics research in Hungary. Total staff: 131 people, of which 47 carries out research, the others are involved in management and data processing.

Agricultural Research Institute (AKI)

Agricultural Research Institute (AKI) Staff responsible for price communications: Cereals and oilseeds – 2 colleagues Milk products – 1 colleague Sugar – 1 colleague Meat (including poultry) – 2 colleagues Wine + tobacco – 1 colleague Fruit and vegetables – 3 colleagues Total: 10 staff

TRAINING SESSION IV. Closing and Evaluation Technical Assistance for Development of a Strategy for Alignment with Common Market Organisation (CMO) Requirements TR2014/AG/10-A1-01/001 This Project is co-financed by the European Union and the Republic of Turkey TRAINING SESSION IV. Closing and Evaluation Ankara, 14 May, 2018

Common Agricultural Policy (CAP) spending

Breakdown of CAP expenditure (past)

Breakdown of CAP expenditure (past)

CMO regulation

Evolution of the CAP Market-related expenditure ↓ Within the market related measures: Intervention, private storage ↓ Export/import measures ↓ Quota systems ↓ Producer Org./Interbranch Org. ↑ Contractual rules ↑ School schemes/Other small aid pr. -

Evolution of the CAP - Direct market related measures (intervention, private storage, exp/imp measures, quota systems) are diminishing in importance. - Some of them used as a safety net in case of extreme market turbulence. - Other (indirect) market related measures are favourised (Producer Org./Interbranch Org.), providing market information becomes more important.

This publication has been produced with the financial assistance of the European Union The contents of this publication is the sole responsibility of NIRAS IC Sp. z o.o. and can in no way be taken to reflect the views of the European Union