1. 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
Common Agricultural Policy and Experience of New Member State: The case of Croatia
Ankara, 6 February, 2018

2. Importance of Agriculture in EU
Source of income for around 20% of population, which live in predominantly rural regions
Rural regions cover 44% of the EU territory
Provides job for 22 million farmer and agricultural workers
Contributes to the export with 7,5%

3. EU self-sufficiency in agricultural products, 2004 and 2015

4. Average farm size across countries
Turkey: ~̴ 6 ha

5. Average farm size in the EU

6. World top traders of agri-food products (2014-2016)

7. the average farm size is only 7
the average farm size is only 7.9 ha, generally implying small field size

8. EU import, export and trade balance

9. Top EU Agri-food exports to Extra EU 28, in 2016

10. Top EU Agri-food imports from Extra EU 28, in 2016

11. Agri-food trade EU -Turkey, 2006 - 2016

12. Top EU Agri-food exports to Turkey in 2016

13. Top EU Agri-food imports from Turkey in 2016

14. CAP today Pillar I Pillar II Other (Chapter 11) State aid
Direct payments
CMO
Pillar II
Rural development
Other (Chapter 11)
State aid
Paying agency
FADN
FAS
Quality policy
Organic production

15. History of CAP (1) Productivity Competitiveness Sustainability
Early years
(1960s)
Crisis years
(1980s)
Reform
1992
Agenda
2000
Reform 2003
Reduced surpluses
Environment
Stabilisation of income
Stabilisation of budget
Food security
Higher productivity
Stabilising the markets
Income support
Excess production
Excess costs
Intenational disputes
Structural measures
Continuation of reform
Competitiveness
Rural development
Market orientation
Protection of consumers
Farm income

16. History of CAP (2)

17. Total EU budget

18. EU Funding
Shared management  Commission is responsible for overall management of EAGF, while execution of payments is delegated to MS:
MS accredit Paying Agency (PA)
PA checks eligibility of applications
PA executes payments to beneficiaries
PA claims expenditure to the Commission
Commission reimburses the expenditure

19. Overview of policy instruments

20. Allocation of Direct payments per Member State
R 1782/2003
R 1307/2013
Sveeden
Austria
Portugal
Finland
Lithvania
Belgium
Slovakia
Croatia
Latvia
Estonia
Slovenia
Cyprus
Luxembourg
Malta
EU 28
R 1782/2003
R 1307/2013
France
Germany
Spain
Italy UK
Poland
Greece
Romania
Hungary
Ireland
Denmark
Czech
Bulgaria
Netherlands

21. Direct payments schemes
MS envelope
compulsory
Basic payment scheme
(SAPS)
Green payment
Young farmers payment
voluntary
Coupled support
Small farmers scheme
Payment for areas with natural constraints
Redistributive payment
30%
max 2%
max 13+2%
max 10 %
decoupled
max 5%
coupled
max 30%

23. CMO
Set of different measures implemented in a different agricultural sectors
Result of a very long evaluation of the CAP
In the past: 90% of CAP expenditures

24. Structure of CMO expenditures in 2016 (total 3,2 billion EUR)

25. CMO: Intervention measures
Objective: Support sectors in cases of market disturbances
Achievement of the objective:
Removal of certain quantities of products from the market by buying-in by the Paying Agency (public intervention) or support to producers who store their products (private storage aid)
Selling of stored products on the market
Preconditions:
References prices monitoring
System for implementation must be established and accredited

26. CMO: Aid schemes Preconditions:
Objectives and Achievement of the objectives:
Promotion of healthy eating habits: school schemes
Stabilisation of the market and concentration of supply: support to OP in the F&V sector
Competitiveness and stabilisation of the market in the wine sector: support to national programmes
Improved production and marketing in the apiculture sector: support to the national programmes
Preconditions:
National strategies (school schemes, apiculture, wine)
Approved producer organisation in some sectors
Principal of co-financing

27. CMO: Marketing standards
Objective: to improve the production, marketing and quality of agricultural products
Achievement of the objective:
Marketing standards: mandatory rules for certain sectors
Optional reserved terms: additional description of added value for certain products
Definition, designation and sales description: mandatory rules in marketing of products
Precondition:
Well established system of controls

28. CMO: Producer organisation
Objective: adjustment of supply to demand, placement on the market of products of members of POS
Achievement of the objective:
Mandatory recognition of PO (F&V, milk, olive oil, hops, silkworm, tobacco)
Optional recognition in other sector
Support to PO

29. CMO: Trade measures
Objective and achievement of the objective: Mandatory recognition of PO (F&V, milk, olive oil, hops, silkworm, tobacco)
Protection of the internal market – general and additional custom duties
Monitoring of trade flows – import and export licences
Implementation of international markets – tariff quota management
Competitivenes on export markets – export refunds
Preconditions:
Full-fledged EU membership
System of securities

30. RD environment

31. RD priorities/actions

32. 2014 – 2020 EAFRD funding (€ million)
*Envelopes in place after entry into force on 23rd May 2015 of COMMISSION DELEGATED REGULATION (EU) No 2015/791 amending Annex I to Regulation (EU) No 1305/2013 of the European Parliament and of the Council on support for Rural Development by the European Agricultural Fund for Rural Development, i.e. after transfers between Direct Payment envelopes and the RDP envelopes; ** includes EU level technical assistance (239 mil. EUR)

33. RD structures Programming - Rural Development Programme - RDP
Monitoring - annual and final reports, Monitoring Committee
Evaluation - ex-ante, on-going + interim, ex-post
Promotion of RDP
Implementation of Technical Assistance
MANAGING AUTHORITY
Check of eligibility criteria - administrative and on-the-spot control
Payments
Accounting
PAYING AGENCY

34. Experience of New Member State
STATISTICS!!!

35. Croatian precedent in DP
mined and mine-suspected agricultural areas

36. Croatian precedent in DP
 Year I II
III IV V VI
VII
VIII IX X
Other New Member States 
EU budget 25 30 35 40 50 60 70 80 90
100
National budget 20 10
Total 55 65
Croatia  75

37. Croatian experience, Chapter 12: Establishments of food of animal origin

38. Croatian experience, Chapter 12: Milk quality

39. Croatian experience, Chapter 12: Animal welfare
until the end of the production cycles that have started before the date of Croatia's accession to the EU, i.e. for a period not exceeding 12 months after accession

40. Foreign agricultural trade: Croatia (mln EUR)

41. Post accession funds (ESI funds)

42. Why are EU funds important for CEE?

43. Croatia: EU Funds allocation, before and after accession
PHARE,ISPA,SAPARD IPA Structural Funds and Cohesion Fund*

44. Project information:
Technical Assistance for Development of a Strategy for Alignment with Common Market Organisation (CMO) Requirements
TR2014/AG/10-A1-01/001

45. Project Identification Data
Implemented by: NIRAS IC Sp. z.o.o – Consortium Leader
Duration: 12 months
Purpose of the Project Team
to develop a strategy for gradual adoption of EU legislation on Common Market Organization (CMO) by the accession and
to improve the institutional capacity related with CAP and particularly CMO regime

47. Target groups Ministry of Food, Agriculture and Livestock
Staff of other relevant Ministries/Institutions
NGOs

48. The main project outputs
Strategy
Administrative capacities
Gap analysis
Administrative structure assessment
Strategy + Road map
TNA
Training materials
11 trainings (target: 1,000 participants)

49. Strategy for gradual adoption of EU legislation on CMO
Policy mechanisms gradual implementation plan
CMO alignment with work breakdown among key actors (Paying Agency with clear segregation of duties and policy decision level)
Budgetary appropriation including budgetary re-allocation
Description of coordination mechanisms
Roadmap of all necessary steps to be taken

50. Awareness Raising and Visibility
2 high level seminars
3 public trailers
1 trailer on carcass classification
a number of promotional materials
closing event
implementing communication strategy

51. Implementation of Communication Strategy
Sustainability, Quality and Competitiveness

52. 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