1. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 11 – Agriculture and rural development Bilateral screening: Chapter 11 PRESENTATION OF MONTENEGRO Brussels, 13. 12. 2012

2. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 11 MARKET SECTORS Bilateral screening: Chapter 11 Presentation of Montenegro Zorka Prljevic Brussels, 13.12.2012 Chapter 11: Agriculture and rural development

3. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union CEREALS FIBRE FLAX HEMP COTTON SILKWORM OILSEEDS DRIED FODDER HOP SEEDS BANANAS RAW TOBACCO SUGAR ORGANIZATION OF THE MARKET Chapter 11: Agriculture and rural development

4. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Law on Agriculture and Rural Development (Official Gazette of Montenegro 56/09) NATIONAL LEGAL FRAMEWORK Chapter 11: Agriculture and rural development

5. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Due to specific natural conditions, Montenegro has limited areas of arable land, which are underutilized. Average yields of field crops are low, which reduces the producers’ competitiveness and the interest in this form of production. Development of field crop production is one of conditions for rational use of already limited natural resources. CEREALS Chapter 11: Agriculture and rural development

6. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union CEREALS Chapter 11: Agriculture and rural development

7. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Production of cereals in Montenegro is at a low level, for example wheat 2.465 tons in 2010 – statistical yearbook 2011 and it meets only 2.5% of total annual consumption (97.345 t) of this product. The remaining quantities have to be ensured trough import. CEREALS Chapter 11: Agriculture and rural development

8. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union CEREALS Chapter 11: Agriculture and rural development Production of cereals in Montenegroha WheatBarleyCorn harvested area, ha yield, tons harvested area yield, tons harvested area yield, tons totalper hahatotalper hahatotalper ha 20078081 9692,448681 0581,222 7566 9372,52 20088262 8563,467872 2442,852 7129 6253,55 20098463 0443,68072 2212,752 66410 0093,76 20107342 4653,367312 0112,752 73410 4843,84 20117562 4463,247401 9552,642 79811 6884,18 Source: Monstat, Division for Agricultural Statistics

9. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union CEREALS Chapter 11: Agriculture and rural development Production of cereals in Montenegroha RayOatsMaslin harvested area, ha yield, tons harvested area yield, tons harvested area yield, tons totalper hahatotalper hahatotalper ha 20071942141,12212401,1--- 20082005772,92215242,45183,5 200932410003,12004942,55204,0 20102597993,11954992,65153,0 20112688263,12335862,55153,0 Source: Monstat, Division for Agricultural Statistics

10. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union FIBRE FLAX, HEMP, COTTON AND SILKWORM In Montenegro, there is no production or processing of fibre flax, hemp, cotton and silkworm. In accordance with the Law on Prevention of Drug Abuse, OG MNE 28/11, Article 18 growing of poppy and hemp is allowed for food and industrial purposes. Poppy and hemp may be grown by legal and natural persons who are licensed for poppy and hemp growing and have a contract concluded on buy-up of the entire yield with a legal entity registered for trade in poppy and/or hemp, in accordance with the Law. Chapter 11: Agriculture and rural development

11. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union OILSEEDS Montenegro does not produce any oilseed (rapeseed, sunflower seed and soya beans). Montenegro does not produce oil and all necessary quantities are ensured trough import. Montenegro does not have the system of import licenses for oilseeds and the aid system for exports. Chapter 11: Agriculture and rural development

12. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union DRIED FODDER Montenegro is very rich in mountain pastures that are used very extensive. Traditional system for use of this mountain pasture is trough sun dried fodder. The largest share in the structure of agricultural land are pastures and natural meadows. These categories of most extensive land usage together form about 88% of total agricultural area. According to this indicator Montenegro is close to Ireland (73%), Great Britain and Slovenia (about 60%). Chapter 11: Agriculture and rural development

13. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union DRIED FODDER Natural meadows form 90% of the total areas under meadows, while sown lawns are present in smaller areas of well managed households. Average yields of meadows are relatively low (1,5-1,8 t/ha of hay) due to the fact that agro-technological measures are not applied in most of these areas. Natural meadows and pastures, are the most important potential for forage production. Chapter 11: Agriculture and rural development

14. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union DRIED FODDER Chapter 11: Agriculture and rural development

15. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union DRIED FODDER Chapter 11: Agriculture and rural development Production of sun dried fodder in Montenegroha CloverLucerneForage beet harvested area, ha yield, tons harvested area yield, tons harvested area yield, tons totalper hahatotalper hahatotalper ha 200786628003,233250114743,5323419468,31 200888739594,463315153584,63217367016,92 200990639254,333313151264,57203328816,20 201082334144,153182144464,54152218014,34 201185436384,263271149804,58148202413,68 Source: Monstat, Division for Agricultural Statistics

16. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union DRIED FODDER Chapter 11: Agriculture and rural development Production of sun dried fodder in Montenegroha Fodder maizeMeadowsPastures harvested area, ha yield, tons harvested area yield, tons harvested area yield, tons totalper hahatotalper hahatotalper ha 2007113141712,541287811842901,43323876736850,23 2008127269421,211278532331471,82324269692980,18 2009150299920,001269312492341,96324531848300,26 2010167292217,501268702438681,92324447860590,27 2011269410815,271269902543252,00323953881180,27 Source: Monstat, Division for Agricultural Statistics

17. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union HOPS Montenegro does not produce hop. One local breweries : Beer and juices industry "Trebjesa" JSC Niksić  type of beer: light and dark;  quantity: in 2011, 399,040 hl  sale in Montenegro in 2011: 373,765hl  export in 2011: 62,868 hl  total sale in 2011 (MNE & export): 436,633hl Chapter 11: Agriculture and rural development

18. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union SEEDS Montenegro does not produce seeds that are under EU common market organization. Production in Montenegro (other seeds): Chapter 11: Agriculture and rural development

19. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union SEEDS Chapter 11: Agriculture and rural development Production of sun cereal seeds in Montenegroha Winter triticale Winter rye Winter wheat Spring barley Spring oat Spring rye Spring wheatTotal 201110,114,356,414,2525,3--70,4 201247,79-31,1539,813.34.590.55 Source: Phytosanitary Directorate

20. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union BANANAS Montenegro does not produce bananas. Chapter 11: Agriculture and rural development Import in Montenegro 20072008200920102011 tone 1112395901015674258146 Source: Monstat, Division for Agricultural Statistics

21. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union RAW TOBACCO There is no state trade monopoly in Montenegro. Production and marketing of tobacco and tobacco products is free in Montenegro. The land near the Skadar lake are areas less favorable for growing of other cultures, but this land provide all necessary conditions for production of tobacco. Optimal exploitation of these areas would incite significant increase in the production of tobacco. Chapter 11: Agriculture and rural development

22. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union RAW TOBACCO Chapter 11: Agriculture and rural development Production of raw tobacco in Montenegro 20072008200920102011 Harvested area, ha 159154126125 Yield – tons – total 358324272270258 Yield – tons per ha 2,252,12,16 2,06 Source: Monstat, Division for Agricultural Statistics

23. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union SUGAR In Montenegro, sugar beet is not grown and thus no production of sugar exists. Montenegro does not apply the system of import/export licensing nor does it perform control and monitoring of trade. Montenegro is the net importer of sugar. Chapter 11: Agriculture and rural development

24. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Until the date of the accession, Montenegro will draft and adopt proper legislation with the aim to ensure that appropriate implementation takes place and it will make all necessary preparations for establishing institutional solutions to improve organization and effectiveness. MARKETING STANDARDS (QUALITY AND LABELING RULES) Chapter 11: Agriculture and rural development

25. Thank you for your attention! QUESTIONS