The Hungarian School Milk Scheme Csaba, VITÁRIUS Department of Agricultural Markets Ministry of Agriculture Gödöllő, 29th October 2015

Table of contents I.Regulatory background II. Main characteristics of the Hungarian scheme III. Operation in practice IV. The scheme in numbers V. Experiences, future plans 2

Regulatory background EU legislation: 1308/2013/EU – basic act, 657/2008/EC – detailed rules of implementation. National legislation: new national regulation each year, Reg. 19./2015 (IV. 24.) of MA. Communications: announcements about application forms and general conditions of the submission. 3

Table of contents I.Regulatory background II. Main characteristics of the Hungarian scheme III. Operation in practice IV. The scheme in numbers V. Experiences, future plans 4

Main characteristics of the scheme Global aims: – encourage consumption of healthy dairy products containing important vitamins and minerals, – nutritional & educational character (provide quality products, to contribute to a healthy way of living + nutritional education for a better knowledge on products). Voluntary: educational establishments may decide to join and apply for aid. Beneficiaries: children in nursery schools, primary and secondary education and children with special educational needs. Daily allocation of products: max. 2,5 dl of liquid milk or milk products in liquid milk equivalent (4 days/week). Budgetary resources: union aid + national allocation. Rate of support: depending on the level of development and the age of the beneficiaries, up to 100% of the gross purchase price. 5

Level of union aid EU budget is not limited (future plans). 6 Product categoryUnion aid (EUR/100 kg) Category I. (heat-treated milk, flavoured and non- flavoured, yoghurt, kephire) 18,15 Category II. (yoghurt with fruits, flavoured and non- flavoured) 16,34 Category III. (fresh and processed cheese)54,45 Category IV. (Grana Padano, Parmigiano Reggiano)163,14 Category V. (cheeses out of Cat. III. and IV.)138,85 Source: 657/2008/EC

Level of national aid The basis of the national top-up is the contractual gross purchase price, but a maximum is fixed in the regulation. 7 Product categoryMax. purchasing price Cat. I. (whole milk, semi-skimmed milk, flavoured and non-flavoured) 32,5 HUF/dl Cat. I. (skimmed milk, flavoured and non-flavoured)13,2 HUF/dl Cat. I. (non-flavoured yoghurt and kephire)395 HUF/kg Cat. I. (flavoured yoghurt)460 HUF/kg Cat. II. (yoghurt with fruits)485 HUF/kg Cat. III. (fresh and processed cheese)1 400 HUF/kg Source: 19/2015. (IV. 24.) FM Regulation

Table of contents I.Regulatory background II. Main characteristics of the Hungarian scheme III. Operation in practice IV. The scheme in numbers V. Experiences, future plans 8

Operation in practice I. Actors of the process: Educational establishments, supervising bodies (local governments, churches, foundations, Klebelsberg Center for Institutional Supervision (KIK)), Suppliers (processors), Beneficiaries (children). Paying Agency (Agricultural and Rural Development Agency - ARDA) 9

Operation in practice II. 10 1)Regulation enters into force; announcements and application forms become available on ARDA webpage. 2)Registration of the applicant at ARDA. 3)Delivery contract between the supervising body and the supplier (for 6 or 12 months). 4)Fulfilment (=delivery to beneficiaries). 5)Payment application (after 2 months of delivery). 6)Administrative control performed by ARDA. 7)Payment of aid (within 30 working days).

Table of contents I.Regulatory background II. Main characteristics of the Hungarian scheme III. Operation in practice IV. The scheme in numbers V. Experiences, future plans 11

The scheme in numbers I. 12

The scheme in numbers II. 13

Table of contents I.Regulatory background II. Main characteristics of the Hungarian scheme III. Operation in practice IV. The scheme in numbers V. Experiences, future plans 14

Experiences, future plans 15 The school schemes (milk and milk products, fruit&vegetables) are real success stories in Hungary, number of participants and the budget is increasing year-by-year. The scheme plays an important role in building healthy eating habits, and provides less favourable children with milk & milk products 4 times a week. Flavoured and processed products are more attractive, the main product is liquid milk. Main group of beneficiaries are pupils of primary schools. The scheme has minor market effects (around 20 million kg of milk is used a year). Future plan is to involve the maximum number of children.

More information about the programme 16 European Commission: scheme/index_en.htm Hungarian Government: Paying Agency (ARDA): k?tamogatas_id=1055&mutat=T%C3%A1mogat%C3%A1s+r%C3 %A9szletei

Contacts 17 Ministry of Agriculture of Hungary Department of Agricultural Markets Telephone:

Thank you for your attention! 18