Pravidelná zpráva EK o ČR za rok 2001 - AJ - zemědělství

2001

REGULAR REPORT

ON

THE CZECH REPUBLIC'S

PROGRESS TOWARDS ACCESSION

Chapter 7: Agriculture

Agriculture in the Czech Republic accounted for 3.9% of gross value added in 2000. Employment in agriculture slightly declined over the past year, accounting for 5.1% of total employment in 2000. In 2000, EC imports of agricultural products originating in the Czech Republic increased by 29 % to € 489.3 million. EC exports to the Czech Republic increased by 12 % to € 1,072.3 million. The trade balance in favour of the Community amounted to € 583.1 million compared to € 578.3 million in 1999. The most important product groups in terms of EC imports from the Czech Republic are oilseeds (24 %) with an increase of 21 % and beverages (20 %) with an increase of 63 %. As far as EC exports to the Czech Republic are concerned, the most important sectors are prepared feed (12 %) with an increase of 22 %, fruit (10 %) with an increase of 6 %, miscellaneous preparations (8 %) with a decrease of 5 %, vegetables (7 %) with an increase of 4 % and tobacco (7 %) with an increase of 11 %.

In 2001, the state agricultural budget will amount to approximately € 391.0 million, which represents 2% of the state budget. Support schemes for the agrarian sector amount to € 192.1 million, while support for forestry and water management account for € 14.9 million and € 9.2 million respectively. An amount of € 14.0 million has been allocated to support of renewing assets in forestry and agriculture. The state subsidy to the State Agriculture Intervention Fund amounts to € 118.8 million and NPAA implementation expenditures account for € 19.2 million.

Since last year's Regular Report, the Czech Republic has taken further steps as regards its agricultural policy, in particular as regards preparing the administrative structures necessary to implement the Common Agricultural Policy and transposition in the phytosanitary field.

In May 2001, an amendment to the Act on Conditions of Transfer of Agricultural and Forest Land From the State to Other Persons and to the law on the Land Fund was adopted, facilitating sale of some agriculture premises and of the land on which they are built.

Horizontal issues

With regard to preparations for the European Agricultural Guidance and Guarantee Fund (EAGGF), it has been decided that the National Paying Agency will be established as a part of the State Agriculture Intervention Fund. The Act on Budgetary Rules entered into force in January 2001 and aims to be fully aligned with Community rules.

As to preparations to establish the Integrated Administration and Control System (IACS) the identification of cattle was introduced on a voluntary basis in July 1999 and has been obligatory since 1 January 2001. According to the Breeding Act, which entered into force in January 2001, the obligations related to animal identification shall be met by breeders of pigs, sheep and goats by April 2002. Digital photographs of the whole territory of the Czech Republic have been taken and will serve as a basis for the central land register. A special IACS department has been set up at the Ministry of Agriculture.

In the field of organic farming, an Act on Ecological Agriculture entered into force in January 2001, setting rules for ecological agriculture and labelling of organic foodstuffs as well as import requirements for organic products from other countries.

With regard to trade mechanisms, the structures of the State Agriculture Intervention Fund, have been further developed to implement the acquis in this field.

In the field of quality policy, no particular development has been noted over the past year.

Concerning the farm accountancy data network (FADN), the current system, which is partly in line with the acquis, has been extended to cover more farms.

As regards administrative capacity, a restructuring of the Ministry of Agriculture was implemented in April 2001 in order to prepare for the future management of the common agricultural policy. The new organisation is a step in the right direction, and further organisational changes are being discussed.

Common market organisations

Good progress has been made in this field, in particular as regards the State Agriculture Intervention Fund (SAIF), which has been developed as an administrative structure responsible for market organisation. The statutes of the SAIF were adopted in February 2001, and the SAIF has received additional competencies by decrees providing for market intervention in relation to a number of commodities. A new department for the SAIF was established in the Ministry of Agriculture in April 2001.

Concerning arable crops, further preparations for implementing the CAP have been achieved. A decree has been adopted which provides for conditions and principles of financial support for production of potato and wheat starch and subsidies for the export of foodstuffs made of potato starch. Another decree provides for rules to be respected by the SAIF when deciding on export subsidies for the export of malt. A government order laying down the principles of performance of intervention purchases and sales of cereals was approved in June 2001. A Government Regulation laying down the conditions for providing financial support and compensation for setting aside land, as well as the principles for the sale of rape grown on set-aside land has been adopted.

A decree defining sugar production quotas for 2001/2002 to 2004/2005 and a system for the organisation of the market in sugar, using the basic elements of the EC system, has also been approved.

In the field of specialised crops, measures similar to those in the Community have been introduced for registration of wine-growing and viticulture and for import control.In the fruit and vegetable sector, the Czech Republic has continued the harmonisation of its standards with UN/ECE standards.

In relation to animal products, milk production quotas were introduced in April 2001, based on the Act on the State Agriculture Intervention Fund, and the government has introduced export subsidies for dairy products. A system to support milk consumption ("school milk scheme”) has also been introduced. A new department for the milk sector was established in the Ministry of Agriculture in January 2001. A Decree on beef labelling was adopted and will enter into force partly in October 2001 and partly in January 2002. The common classification of carcasses (SEUROP) has been used for pork meat since April 2001. A decision was taken in September 2001 to establish the Classification Agency for slaughter animals as of January 2002.

Rural development and forestry

With regard to the implementation of agri-environmental measures, a Government order has been approved introducing a system of support for rural development programmes, which include agri-environmental programmes. The department of rural development support has been reinforced with 4 experts. A horizontal plan for rural development is being drafted and is intended to serve as a basis for future support provided by the EAGGF guarantee section.

Veterinary and phytosanitary issues, including food safety

In general, little legislative progress has been noted in the veterinary field over the past year. However, good progress was made in establishing the system of animal identification. The identification and registration of cattle was introduced on a voluntary basis in July 1998 and has been obligatory since January 2001. According to the Breeding Act, which entered into force in January 2001, the obligations relating to animal identification shall be met by breeders of pigs, sheep and goats by April 2002. An implementing Decree concerning cattle, sheep and goats was adopted in April 2001, stipulating the manner of identification, keeping and submission of records. Following the identification of two BSE cases in 2001, the Czech Republic introduced testing of all slaughtered bovines aged over 30 months, removal of Specified Risk Material (SRM) and a set of new rules for treating risk material. In the context of the Geographical BSE Risk Assessment, the Czech Republic has been classified in group III.

In the phytosanitary field good legislative progress has been made over the past year. In the field of plant health (harmful organisms and pesticides), an amendment to the Act on Phytosanitary Care entered into force in January 2001, reinforcing the protection against harmful organisms. It aims to align legislation with Community rules on the registration of growers, producers and importers of vegetable products. The provisions on import registration were implemented as of July 2001. A second amendment to the Act on Phytosanitary Care was adopted in July 2001, and will enter into force in January 2002. The amendment aims to enhance alignment with the acquis as concerns the registration of producers, growers and importers of plants and plant products, introduction of a plant-passport system, protected zones and import and export protection. However, the provisions on plant passports will not enter into force until March 2002.

In the field of plant hygiene, no particular development has been noted over the past year.

In the field of plant variety protection, the Act on Plant Varieties entered into force in January 2001, and aims to reflect the acquis in this field. In particular, it widens the range of rights to plant varieties to be protected.

As regards administrative capacity in the phytosanitary field, the Czech Republic further prepared for incorporation into the EUROPHYT system, upgraded the equipment of diagnostic laboratories and strengthened the central regulatory capacity of plant protection product registration.

As regards food safety (see also chapter 1 - Free movement of goods), the Czech Republic produced a Food Safety Strategy in April 2001 which outlines the systems for co-ordination between the various official bodies involved, their competencies, organisation and staffing.

Overall assessment

Overall, legislative alignment has reached a good level and the setting-up of implementing structures for the common agricultural policy is well underway.

In the field of horizontal issues, the administrative structures needed to implement Community trade mechanisms need to be finalised. In the field of quality policy, supervision mechanisms in line with Community requirements need to be completed. It has been decided that the National Paying Agency will be established as a part of the State Agriculture Intervention Fund (SAIF), which will require an amendment of the Act on the SAIF. As regards preparations for the Community Integrated Administration and Control System (IACS), the legal framework for animal identification and registration is largely in place but the establishment of the land parcel identification system needs to be completed. As regards the Farm Accountancy Data Network (FADN), the existing surveys are only partly in line with the acquis. There is a need to ensure collection of data and administrative capacity in conformity with Community requirements. Co-operation on the exchange of data must also be ensured.

As regards administrative capacity, the reorganisation of the Ministry of Agriculture is a step in the right direction, but further reorganisation is foreseen to reflect the organisation necessary to ensure suitable implementation of the common agricultural policy by accession.

As regards the implementation of common market organisations, the State Agriculture Intervention Fund (SAIF) has started working on specific market regulation in order to prepare for the function of an intervention agency. It is currently not fully equivalent to intervention agencies in the EU, and needs to be adapted before accession. An effective network with a reliable market monitoring system, capable of collecting price data in real time at all points in the chain is lacking. Legislation establishing quality and marketing standards for arable crops and animal products needs to be completed. The Czech Republic also needs to complete market regulation for specialised crops. Further steps are needed to align with the acquis on the market organisation for sugar. The marketing standards for fruit and vegetables are currently aligned with Community requirements. However, the quality control system in the area of fruit and vegetables needs reorganisation. Five producer organisations in this field have been established and benefit from State financial assistance, but the existing legal framework for producer organisations is not in line with Community requirements.

In the area of rural development and forestry, the horizontal legislation is largely in place, but the administrative structures for implementation need to be completed.

Concerning the veterinary field, new horizontal legislation is in place since 1999. However, further legislative work is needed to ensure transposition of veterinary legislation, e.g. in the fields of animal welfare, rules concerning imports from third countries and veterinary controls. As regards veterinary control in the internal market, the system of checks during transport and at destination needs to be aligned. Furthermore, preparations for participation in the animal movement control system (ANIMO) need to be completed. The system for financing of veterinary controls needs to be aligned with the acquis. Border inspection and import checks need to be reinforced and aligned with Community requirements. The border post at Ruzyne airport needs to be completed and suitably equipped, and the staff should be trained with regard to border inspection procedures. In the field of control of animal diseases and animal health, preparations for participation in the animal notification system (ADNS) are well advanced.

In order to provide an efficient animal disease prevention system, the current system for animal identification needs to be centralised and connected to the Czech epidemiological surveillance network. Furthermore, the designation of competent authority for the setting-up of the database for bovine animals needs to be aligned with the acquis.

As regards animal waste treatment, most of the rendering plants for high-risk waste are operating according to Community requirements. As regards public health protection, a substantial portion of the plants processing products of animal origin do not yet meet Community hygiene and public health requirements. An overall plan is needed with regard to the modernisation strategy for these establishments. In the field of animal nutrition, the acquis has largely been transposed. The State Veterinary Administration (SVA) as well as the Agriculture and Food Inspectorate (CAFI) generally function well. The CAFI information network has improved but an on-line connection with the Customs Directorate needs to be established.

In the phytosanitary field, a good level of legislative alignment has been achieved. In the field of plant health (harmful organisms), inspection and control structures appear adequate, but plant passports still need to be introduced as foreseen by the legislation adopted. In the field of quality of seeds and propagating material, appropriate inspection and control structures are largely in place but the mechanisms need to be completed. As regards pesticides and residue levels, all Maximum Residue Levels are not yet fully aligned with Community rules. . The State Phytosanitary Administration has prepared its linking to the EUROPHYT information system in the field of plant health and harmful organisms, but the system needs to be completed. The State Phytosanitary Administration generally functions well, and the situation with regard to specialised equipment is improving. However, further strengthening in terms of sufficient number of adequately trained staff and equipment is needed. An institute for plant identification remains to be set up and the Central Institute for Supervision and Testing in Agriculture needs to be further aligned.

With regard to food safety, the system of inspections is not fully in line with the acquis.. The HACCP (Hazard Analysis at Critical Control Points) system, which involves measures to identify and control hazards related to food processing and the monitoring of safety requirements has been obligatory for all food producers since January 2000 (see chapter 1 - Free Movement of Goods).

Chapter 8: Fisheries

Some further progress has been made in this area over the past year. Fisheries activities in the Czech Republic are limited to aquaculture, mainly carp.

Since the last Regular Report, no particular development has taken place as regards the management of resources, inspection and control. , In the field of structural actions, a number of programming documents have been drawn up to prepare for the fisheries structural policy.

As regards market policy, a producer organisation has been established in 2001, which should help to improve the processing and marketing of fishery products in line with EC practices. The Czech Statistical office has started collecting market data on quantities and prices of Czech fish production.

As concerns state aid to the fisheries sector, support programmes from the state budget via subsidies granted for monitoring fish productivity continued in 2001. Subsidies will be granted only for activities which improve the fish culture.

An amendment to the Act on Fisheries entered into force in October 2000, extending the scope of the fishery law and introducing selective administrative procedure for fish management in fishery districts.

As for administrative capacity, the special unit on fisheries within the Ministry of Agriculture established in 1999 has been abolished and the personnel has been integrated into other departments of the Ministry.

Overall assessment

The Czech Republic's fisheries policy is partly aligned to the acquis in this area. Further progress is needed both as regards the legislative transposition and as concerns administrative capacity necessary to implement the Common Fisheries Policy. Legislation regarding the control of imported fish needs to be adopted, and the control system for sources and species of fish needs to be set up. In order to establish a well-functioning monitoring system for the control of fish resources and imports, co-operation between relevant authorities should be improved.

Institutions also need to be set up in order to implement the acquis as regards controlling the implementation of common market standards, collecting and transmitting data concerning the markets and applying the recognition conditions for producer organisations. Further efforts are required also to prepare for the implementation of the acquis concerning the management of Community structural actions in fisheries. Preparations for the fisheries structural policy, in particular as regards programming documents, are well underway.

Since the Czech Republic is a landlocked country, parts of the acquis in fisheries are of lesser importance for this country.