Republic of Slovenia Ministry of Agriculture, Forestry and Food 1 Slovenian Agriculture and the...

Ministry of Agriculture, Forestry and Food1

Republic of Slovenia

Slovenian Agriculture and the Slovenian Agriculture and the

European unionEuropean union

Iztok Jarc,

State Secretary for EU Affaires

Visit of students from University of Ancona,

19 April 2004



Slovenian Agriculture and Slovenian Agriculture and the European unionthe European union

1. Ministry of Agriculture, Forestry and Food

2. Slovenian agriculture

3. Accession Negotiations on Agriculture

4. Introduction of the CAP Reform


Republic of SloveniaMinistry of Agriculture, Forestry and Food

ORGANISATION CHART OF THE MINISTRY OF AGRICULTURE, FORESTRY AND FOOD

Ministry of Agriculture,Forestry and Food

Internal Control Service

EU Coordination and InternalAffairs Service

Ministers Office

Public Relations and PromotionService

EU Affairs Department

International Affairs andDevelopment Assistance

Department

Directorate for Agriculture Directorate for Food Safety Secretariat

AgriculturalMarketsSection

StructuralPolicy and

RuralDevelopment

Section

SustainableAgricultural

Section

NaturalDisasterSection

Education,Nongovernmental

Org. andAccounting

Section

Safety andQuality of Food

and FeedSection

ZootechnicSection

Animal Identificationand Registration

Section

ForestrySection

Hunting andFishery Section

LegalAffars

Budget andFinanceService

Investmentsand General

Affairs Service

PersonnelAffairsService

InformationTechnology

Service

Analysis TradeMechanisms and

Records Depatrment

Plant ProductionDepartment

Livestock ProductionDepartment

AgriculturalArea

Department

RuralDevelopmentProgrammeDepartment

Legal SystemsAffairs

Department

Administrativeand Legal

AffairsDepartmrnt

Main Office

FitosanitaryAdministration of the RS

Agency of the RS forAgricultural Markets and Rural

Development

Veterinary Administrationof the RS

Inspectorate of the RS forAgriculture, Forestry and

Food

Directorate forForestry, Hunting

and Fishery

220 empl.

320 empl.18 empl. 154 empl.202 empl.



Slovenia - macroeconomic contents

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Population (000) 1996 1991 1989 1988 1991 1987 1983 1986 1990 1992 1996

Change in real GDP (%) -5,5 2,8 5,3 4,1 3,5 4,6 3,8 5,2 4,6 2,9 2,9

GDP per capita (EUR) 4854 5450 6115 7300 7571 8111 8811 9490 10352 10957 11690

Inflation (ann. average)(%) 201,3 32,3 19,8 12,6 9,7 9,1 7,9 6,1 8,9 8,4 7,5

Unemployment rate (%) 13,3 15,4 14,2 13,9 13,9 14,4 14,5 13,6 12,2 11,6 11,6

Share of agriculture

- in GDP (%) 5,2 4,5 4,0 3,9 3,9 3,7 3,6 3,2 3,0 2,9 2,7

- in total export (%)6,7 4,9 4,9 4,0 4,2 4,0 3,9 3,9 3,8 3,7 3,7

- in total import (%)9,6 9,0 9,2 8,4 8,4 8,0 7,3 6,8 6,4 6,6 6,6



Slovenian agriculture• Slovenia - scarcely endowed with natural resources:

agricultural area - 44% of the country territory, 75% located in LFA

• unfavourable size structure (average size of the farm is 6,2 ha), trends of improvement

• agriculture: minor role in overall national economy –

small and falling shares of GDP (2,5% in 2003 est.) and employment (5% of active labour force)

• however, agriculture important for rural development:

rural areas - 89% territory, 57% population in rural areas

• agricultural output stabilised and growing

• livestock is the major sector of Slovenian agriculture



Farm structureFarm structure

1991 1997 2000 2003

Index

03/91

Number of holdings 112140 90831 86467 77145 68,8

Utilised agricultural area (ha) 504222 466589 485879 481034 95,4

Average size (ha UAA) 4,5 5,1 5,6 6,2 138,7

Holdings above 10 ha of UAA:

- share in number (%) 7,6 9,5 12,7 15,7

- share in UAA (%) 26,5 34,5 41,8 46,6



Utilised agricultural area (000 Utilised agricultural area (000 ha)ha)

0

100

200

300

400

500

600

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Arable land Permanent crops Permanent grassland



Number of animals Number of animals (000)(000)

0

100

200

300

400

500

600

700

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Pigs

Cattle

Sheep/goats

Cow s



Gross Agricultural Output Gross Agricultural Output (1991=100)(1991=100)

80

90

100

110

120

130

140

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Agricultural output Crop output Animal output



Self-sufficiency Self-sufficiency (%)(%)

0 50 100 150 200

Wheat

Maize

Potatoes

Sugar

Beef

Pork

Poultry

Milk

Eggs

1992

1995

2002



Agro-food foreign trade Agro-food foreign trade (m(mio USD)

-500

-300

-100

100

300

500

700

900

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Export Import Trade balance



Agro-food imports Agro-food imports (m(mio USD)

0

5

10

15

20

25

30

35

Cereals Cerealsprep.

Fruit Vegetables Fruit andvegetables

prep.

Animalfeed

Meat Fats andoils

Beverages Cocoa Misc.edibleprep.

Other

1992-93 2000-02



Agro-food exports Agro-food exports (m(mio USD)

0

5

10

15

20

25

30

35

Beverages Dairyproducts

Meat prep. Meat Tobacco Misc.edibleprep.

Cerealsprep.

Fruit andvegetables

prep.

Oilseeds Other

1992-93 2000-02



Trade destinations Trade destinations (% of total)(% of total)

EXPORT

0%

20%

40%

60%

80%

100%

1995 1996 1997 1998 1999 2000 2001 2002

EU Ex SFRJ CEFTA Other

IMPORT

0%

20%

40%

60%

80%

100%

1995 1996 1997 1998 1999 2000 2001 2002

EU Ex SFRJ CEFTA Other



Policy harmonization

0

20

40

60

80

100

120

140

160

180

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

General services Rural development and structural policy

Market price measures Compensations for natural disasters

Budget expenditure for agriculture in 1992-2002 (in mio EUR)



Transition – Transition – agriculturalagricultural supportsupport (%PSE)(%PSE)

0

10

20

30

40

50

60

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Slovak R Czech R Hungary PolandOECD EU Slovenia



Agricultural trade relations

Slovenia’s agricultural trade has been firmly integradted into bi-lateral, regional and multilateral trade agreements:

• WTO agreement

• Europe agreement – also substantial trade liberalisation

• Central European Free Trade Agreement (CEFTA) - another step to trade liberalisation, however some import concessions have been on hold



Milestones: in 1998: beginning of legislation screenings in 1999: submission of negotiation positions in December 2002: negotiation agreement concluded.

Objectives: Full and equal integration into the Community legal order Accession must not worsen the economic situation in

agriculture Resolving structural and developmental problems of

agriculture Updating the policy and other forms of sector

management

Accession to the EU- negotiations on agriculture



Accession to the EU- negotiations on agriculture

Negotiation components:

1. Implementation of the acquis commounataire (legislation, policy, institution)

2. Requests for temporary (transitional periods) and permanent derogations from the acquis

3. Financial framework (direct payments, quotas and reference quantities, rural development)



Pre-accession agricultural policy

• long-term goals of the agricultural policy set in 1993 (Slovenia’s Agricultural Strategy) – similar to the CAP goals

• so called ecological-social concept of agricultural policy adopted with stress on multi-functionality of agriculture

• in 1999, reform of the agricultural policy: new policy concept and the ways of goals attainment – as part of preparations to the EU accession



Financial framework:Amount and payment method for direct paymentsLevel of production quotas and reference quantitiesAmount of funds allocated to rural development

(EAGGF – Guarantee Measures)

Agreement:

– progressive increase of direct payments

– topping-up from the national budget to the following levels:

2004: 85%, 2005: 90%, 2006: 95%,

2007: 100% = equalization with producers in the current MS

– in total, 249.8 mio EUR from the EU budget have been allocated to Slovenia for rural development in the period 2004-2006.

Accession negotiations on agriculture



Government decision:

• 2003: CAP-like standard scheme at EU level of 75%. • 2004: no SAPS, but standard scheme (85 % level)

CAP reform introduction - first results of study in favour of

gradual introduction of regional single area payments

Accession Accession effects effects – – selection of direct payments

scheme



Future agricultural policyFuture agricultural policy

1. Slovenia supports further reforms of the CAP

2. When introducing the CAP reform, Slovenia’s objectives are:

• gradual introduction of the new system of decoupled payments,

• prevention of redistribution effects and shocks for producers

• set up of the agricultural policy for the next 10 years, which is economically attractive for producers and at the same time attention is paid to environmental and food safety issues.

Republic of Slovenia Ministry of Agriculture, Forestry and Food 1 Slovenian Agriculture and the...

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