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1 Summer school Miroslava Nemsilova Erika Kmošková Juraj Kubatka Faculty of Economics and Management Slovak University of Agriculture in Nitra Slovakia.

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Presentation on theme: "1 Summer school Miroslava Nemsilova Erika Kmošková Juraj Kubatka Faculty of Economics and Management Slovak University of Agriculture in Nitra Slovakia."— Presentation transcript:

1 1 Summer school Miroslava Nemsilova Erika Kmošková Juraj Kubatka Faculty of Economics and Management Slovak University of Agriculture in Nitra Slovakia CAP and the main agricultural problems in Slovakia and their solution

2 Introduction Agricultur sector is very important in every society. We need food and healthy nature for our live. The most important is keep agriculture in productive and to effective area. But we have to look after about nature. Agricultural sector is very complicated thats why we need to improve our skill in this sector and looking on future, because future is the most important for our next generation. We tryied to solve problem but we arent sure if its true or not if its acceptable or not or wheter it will be safetier

3 3 Situation in all over the world in agricultural sector is not as good as in Europe. For example in third countries do not have enought water and arable land. They can not provide food security because the population increase faster then production function of agricultural sector. Europe do not make use of their production capabilities. We have lot of specialists in this sphere, enought drinking water, fertile soil, suitable climatic conditions.

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6 6 EU budget for Single Payment Scheme (SPS) per year (National ceiling) 2005-2013

7 7 Basic Information  Agriculture accounts for approximately 2.5% of Slovakia's GDP and employsalmost 4,1% of the workforce  Import > export  Farm size the highest more than 100ha  Euro/workers < euro/ha share of total food production is in : dairy production 18% meat production 17% brewing 8% poultry production 8% confectionery-baking production 7%

8 8 Rural Development Programme 2007-2013 objectives and priorities Increasing the competitiveness of agriculture and forestry support for modernization, innovation, knowladge biodiversity conservation in rural areas improve the quality of agricultural change effects climat changes Job and partnership creation in rural areas promoting education in rural areas improving the management and mobilization potential in rural areas Increasing the competitiveness of agrofood and forestry creation of multifunctional agriculture and forestry systems increase rural employment and promote community development support to the development of local partnership improving environment and landscape quality of life in rural areas and diversification of rural economy Leader IIVIIIII objectiv priority axis

9 9 CAP in Slovakia CAP budget

10 10 Problem 1: work and business in agriculture is not interesting for young people.  Reason: Low salary in agriculture Sector has seasonal employment Low value added Qvotas from EU many administrative problems Banks are unwilling to extend loans to farmers  Solution: Payments to I pillar, III pillar (employment opportunities in rural areas ) More information about subsidies and other paymants eliminate quotas

11 11 Problem 2: Natural disasters  Reason: Rivers are not regulate No irrigation and drainage system  Solution: more money to II pillar rebuild irrigation and drainage system flood protection barriers

12 12 Problem 3: high investment costs  Reason: Low price of agricultural products set aside land fund is complicated  Solution: farm must cooperate Vertical co-operation Horizontal co-operation better planning systems

13 13 Problem 4: conflict of interest (WTO and CAP)  Reason: High direct payments in EU low prices of agricultural products in EU different conditions between the EU and other countries  Solution: support to agriculture in indirect payments increase payments into the agro-environmental projects prefer sustainable development

14 14 SWOT chart for Slovakia agri-food sector Strengths (S) Weaknesses (W) SCIENCE  high number of education institutions and centers  highly qualified staff (scientists)  R&D programs and strategies  Involvement in international projects  Existing support centersfor the development oft he sector AGRO SECTOR  favourable production conditions (climate)  production technology in some areas  modern small scale food industries  Good conditions for agrotourists SCIENCE  inadequate programs of agro-food education  underdeveloped sector of adult education  low investment in educational infrastructure  low number of available experts  low networking of institutions AGRO SECTOR  low competitiveness of small scale producers  low compliance with EU safety and quality standards  insufficient organisation of production?  negative trade balance in the sector  undeveloped distribution channels

15 15 Opportunities (O) Threats (T) SCIENCE  improvement of agri-food education  better cooperation of science and agri-food sector  higher involvement in European research area AGRO SECTOR  better organisation of producers  modernisation of SMEs  adopting EU food safety standards  agro-tourism  establishment of private consultancy services  improvement of networking between producers, industries, research centres SCIENCE  low priority of the sector in scientific community  limited financial resources for research  slow process of changes in the scientific research AGRO SECTOR  increased competition resulting from EU accession  low investments in modernisation and infrastructure  limited sources of financing

16 16 Conclusion  cancel the calculation of direct payments based on historical principle  Maintain direct payments  Effective and workable legislation  identical production conditions and standards for goods imported into the EU

17 17 Network


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