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 PIG MEAT SECTOR Sunčica Boljević Dr Milan Marković Bilateral screening: Chapter 11 Brussels, 11-13. December 2012

2. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Legal framework Poglavlje 25 Nauka i istraživanje Law on Agriculture and Rural Development (OG MNE 56/09) Law on Livestock Farming (OG MNE 72/10) Veterinary Law (OG MNE 30/12) Law on Food Safety (OG MNE 14/07) Law on Animal Identification and Registration (OG MNE 48/07, 73/10) Secondary legislation 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 Institutional framework Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development Ministry of Agriculture and Rural Development Administration for Inspection Affairs Veterinary Directorate Diagnostic Veterinary Laboratory Center for Eco-toxicological Research Institute for public health

4. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union BASIC INFORMATION Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development Pig herd: Pig production in Montenegro is a weak sector, with expressive fluctuations during the year, primarily due to lack of suitable areas for cereals production for pig feed. According to MONSTAT Agriculture Census of June 2010, the total number of pigs was 47,673. Fattening of pigs is largely performed in family households for their own consumption. According to estimates, slightly above 2,000 sows and boars, out of which 756 sows are located in one big farm (Pantomarket doo in Spuz). The remaining 1,100 sows are spread over one hundred family farm holdings. Family farm holdings exist in the whole country, with their respective different capacities ranging from a few sows up to 100, or from 100 to 3,500 piglets for fattening.

5. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Number of holdings engaged in pig production sector ItemTotal Family farm holdings Business operators Number of holdings13,46913,4654 Total number of pigs (all categories) 47,67341,1186,555 PIG HERD Montenegro has not established yet an identification and registration system for holdings where pigs are farmed. It has been planned to establish pig I&R in 2014, when the identification data of all farmers who farm pigs will be available.

6. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development Data of pig population over the period from 2007 to 2011, per categories and as at January 15 th Category of pigs2007200820092010 2011* Total number10,37410,01712,37711,205 21,398 Piglets, up to 6 months7,3067,2959,1268,28 Gilts older than 6 months1,4089891,240914 Sows and pregnant gilts1,5931,6761,9771,952 2,799 Breeding boars67573459 90 Piglets, up to 19 kg 4,182 Pigs, 20 - 49 kg 8,494 Pigs for fattening, 50-79 kg 2,517 Pigs for fattening, 80-109 kg 1,581 Pigs for fattening, more than 110 kg 1,589 PIG HERD

7. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development The structure of pigs comprises 47.6% of piglets and pigs up to 49 kg. Besides, the share of fattening pigs between 50 and 110 kg is high, i.e. it is 39.6% total. On the other hand, the shares of pregnant gilts and pregnant sows are very low, i.e. they are 0.8% and 3.5% respectively. There is relatively small number of farms with (around 500 total) breeding pigs, and in such manner approximately 15,000 pigs for slaughter and of 100 kg live weight on average are produced. Besides, the imports of fattening pigs from Serbia equals to 20,000 each year. FARM STRUCTURE (PIG PRODUCTION)

8. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development Source: MONSTAT - The 2010 Agricultural Census Structure of pig farms Size of farmsNumber of holdings Up to 1013168 From 10 to 49277 From 50 to 9913 From 100 to 1491 From 150 to 1992 Less than 200 pigs (total)13461 200 - 399 pigs7 400 – 999 pigs0 ˃10001 TOTAL13469

9. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development PRODUCTION OF MEAT The estimate of meat production given under the Sectorial Analysis for IPARD Program in 2010, show that total production of pig meat is about 3,170 tons or 19% out of the total meat production; The major portion of meat is produced in small units, while family holdings fatten piglets for their own purposes; One larger farm have the annual capacity is about 8,000 pigs for fattening and several farms with lowest capacity (about 10); Approximately 10%-20% out of piglets from indigenous produced and that are between 100 and 110 kg live weight are slaughtered in commercial enterprises, with even greater number of them slaughtered at family farm holdings.

10. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development Imports: Pig meat is the major kind of imported meat. The share of pig meat (21,692 tone) in the total imports (31,903 tone) equals to approximately 70% (Meat Sector Study). Exports: According to the Meat Sector Study, export of pork meat in 2009 was 1,190 tone. Existing stocks: There is no stocks system in Montenegro. Human consumption: The estimate of consumed pig meat (total) was given under the IPARD Program Sectorial Analysis that was developed, in 2010. The volume of consumed pig meat equaled to 23,672 t, which was 36.4 kg per capita, including also the tourism season-related consumption thereof. Self sufficiency: Based on the above mention figures on production, import and export, self-sufficiency is very low, only 13%. PRODUCTION OF MEAT

11. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development PRODUCTION OF MEAT Production and consumption of meat in Montenegro (2009.) Meat Indigenous production, tons Import, tons National consumption, tons Export, tons Deficit, tons Self- sufficiency % Pork meat 3,17021,69223.6721,19020,50213

12. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development CONSUMPTION pig meat - a traditional meat Pig meat consumption has the highest share in total meat consumption in Montenegro; Also, pig meat processing takes a very important place in the form of traditional dry- cured meat products that are consumed all year round; Very vital segment of Montenegrin meat processing sector is the production of traditional dry-cured ham, made from imported pig meat, which is smoked and air- dried;

13. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development CONSUMPTION pig meat - a traditional meat “Original” Njegusi dry-cured ham is produced in Njegusi, namely in the area some 800 ha large that spreads between Cetinje and Kotor; Njegusi enjoys very specific climate conditions, with Mediterranean winds impacting positively on the production process; Dry-cured ham’s specific taste and aroma are the results of the sea and mountain air mixture and the woods that are used during drying process; Small family producers of ham still do the seasonal production process starting by salting and smoking in the late autumn, i.e. when the temperature is low enough (November – January) to ensure avoiding unfavorable maturing conditions;

14. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development In general, consumption of pig meat has been increasing in last 10 years but it is still low then in the EU Production chain index for pig sector (Previous Year=100) Year 20072008200920102011 Chain index938210896161 ItemConsumption, kg Montenegro: pork meat consumption, kg per capita (2004)* 20 Montenegro: pork meat consumption, kg per capita (2009)* 36,4 EU-27: pork meat consumption, kg per capita (2009) **42 CONSUMPTION

15. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development No producers organization; Import live animals for breeding; Raw material is imported largely, both live animals for slaughter and carcasses. There is no price guarantees (agreement in time of buying) There is no recognized classification system for animal purchasing, which makes it difficult for producers to estimate the market prices. Traditional method of selling is the sale as seen or sale per kilo of live weight. MARKETS

16. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development The Register of Approved Slaughterhouses MARKETS MunicipalitySlaughterhouse Number of slaughtered pigs 200920102011 PodgoricaPoint7,8618,6576,957 CetinjeGolijanin3,7783,6663,800 Danilovgrad Pantomarketd13,68313,2509,804 ZIKS886172 Nikšić Goranović8461,5811,998 Tuko523404445 HercegNoviJelej1,4271,414937 TOTAL28,20629,03324,013

17. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development Prices System of pricing is not based on carcass quality, mostly on live weight; The Law on Agriculture and Rural Development (OG MNE, No. 56/09) provides for the establishment of Agricultural Market Information System for gathering, processing and publishing the data of quantities and prices of certain agricultural products. In line with the foregoing Law, the Payment Agency shall be competent authority for establishing and updating the AMIS. MARKETS

18. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development In the mid of 2006, Agrarian Marketing Information System (AMIS) for gathering and disseminating data of agricultural product prices on the market of Montenegro was established. The task of AMIS is to prepare reports on the current prices and their trends and on the situation within agricultural products market. AMIS publishes the Review of Live Stock Prices on Particular Markets and Weekly Report from the Market; For more information see AMIS web-site: http://www.amiscg.org/cijene/php/prcijena_frm.php,http://www.amiscg.org/cijene/php/prcijena_frm.php The average prevailing prices in 2011 on livestock markets: Piglets: €2.96 Fattening pigs: €2.26 Sows for slaughter: €1.20 MONSTAT report retail prices of pig meat and processed pig meat products MARKETS

19. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development Retail prices of pig meat and processed pig meat products MARKETS Item Average retail price, in € 200920102011 Fresh pig meat Pig meat with bones, in kg 4.934.544.74 Deboned pig meat, in kg 5.785.675.16 Processed pig meat products Smoked and cured pig ribs, in kg4.414.624.88 Smoked and cured pig neck, in kg 10.9210.769.97 Smoked and cured bacon, in kg 7.297.287.08

20. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development There is no system for monitoring prices on the market established so far in line with the rules prescribed under Regulation No. 1234/2008 and Regulation No. 1249/2008 laying down detailed rules on the implementation of the Community scales for the classification of beef, pig and sheep carcasses and the reporting of prices thereof; Until the accession to the EU at latest, Montenegro will establish the sector- related data gathering system, whereas particularly the price monitoring system that is required for further communication with the EU. MARKETS

21. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development Price developments (on a basis of average quality carcasses) over the last 3 years. There is no state organization for monitoring price developments. Based on the reports of slaughterhouses, average price of carcasses (wholesale) with WAT were as follows: MARKETS Year201020112012 Average price 2,63€ 2,78€ Average slaughter weights Average weight at slaughter ranges between 90 and 110 kg, with seasonal (before holidays) slaughter of piglets with weights ranging between 25 and 35 kg. The data was collected in slaughterhouses listed in the answers under Item 3: Slaughterhouses. The Statistical Yearbook contains the data of average gross and net weight of slaughtered pigs, as well as the data of average weight based on the data obtained from slaughterhouses.

22. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union SLAUGHTERHOUSES Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development Thanks to the investments made over a couple of previous years, there are several advanced slaughterhouses with contemporary equipment. However, the existence of pigs slaughtering in households is still tradition in Montenegro. Region MunicipalitySlaughterhouse Central PodgoricaPoint d.o.o CetinjeGolijanin d.o.o Danilovgrad Pantomarketd.o.o ZIKS Nikšić Goranović d.o.o Tuko d.o.o South HercegNoviJelej d.o.o.

23. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union SLAUGHTERHOUSES Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development The slaughterhouses are privately owned, except one that belongs to the Institute for Execution of Criminal Sanctions. Certain pig slaughterhouses deliver services of slaughter to other food business operators that, most frequently, perform retail sale of meat. The inspection of meat on slaughter line (ante mortem and post mortem) is done by veterinarians that are authorized by the Veterinary Directorate. There is no classification system for carcasses, based on lean meat content, established yet. Not a single slaughterhouse has been certified for export to the EU.

24. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union SANITARY SITUATION Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development Diseases: Classical swine fever As of 2007, no single classical swine fever case has been registered in Montenegro. Aujeszky disease Was diagnosed in one pig in 2002 and in one pig in 2005 within the territory of Podgorica municipality. Trichinellosis Sporadically in wild and domestic pigs

25. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union SANITARY SITUATION Poglavlje 25 Nauka i istraživanje Chapter 11: Agriculture and Rural Development Eradication programs: Vaccination: Annual Animal Health Protection Program, contain a specific program, provides for timely detection and suppression of classical swine fever and prevention of the disease outbreak by maintaining an active immunity to classical swine fever virus through pig vaccination within the territory of Montenegro. In case of an outbreak of the disease, euthanasia and safe disposal of infected and suspicious animals shall be undertaken, along with carrying out all prescribed zoo hygienic and biosafety measures. Owners of such animals shall be paid compensations for damages that took place during suppression and eradication of classical swine fever, in line with the Law.

26. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Until the day of the accession, Montenegro will draft and adopt proper legislation aimed at ensuring an appropriate implementation and it shall complete the corresponding preparations with the aim to establish institutional solutions for improving organization and effectiveness.

27. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development

28. Thank you for your attention!