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 OLIVE OIL Brussels, 11-13 December 2012 Bilateral screening: Chapter 11 Marija Krstić marija.krstic@mpr.gov.me

2. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union SECTOR OVERVIEW Chapter 11: Agriculture and Rural Development AREA, AGE AND VARIETIES -The area of most of plantations under olive trees ranges from 0.2 to 2 ha. Larger complexes are situated in the region of Ulcinj, Bar and Luštica with 20,000 to 80,000 trees - 10% are young plantations, while 90% range from 50-150-200 years and above - average tree height 7-15 m - 90% autochthonous variety Žutica - 10% introduced varieties of Italian, Greek and Spanish origin YIELD AND APPLICATION OF AGRO-TECHNICAL MEASURES - the potential for annual production is above 2000 t of olive oil - extensive production in 70% of plantations, alternate bearing - low yield of 4.1 kg of olives per tree and only 0.8 l of olive oil per tree - olives of just half of the total number of trees is utilized

3. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union SECTOR OVERVIEW Chapter 11: Agriculture and Rural Development Indicator 2007.2008.2009.2010.2011. Number of trees (000)417418406408436 Production (000 t)1.21.22.42.41.61.62.31.6 Yield per tree (kg)2.92.95.75.73.93.95.73.6 Source: MONSTAT – Statistical Yearbook 2011 OLIVE PROCESSING - more than 90% of olives collected is processed into oil - the total of 25 oil makers (8 with continuous processing lines and 17 are traditional with presses) - other processed olive products (negligible production, for personal consumption only, and in traditional way)

4. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union SINCE THE BEGINNING OF THE LAST CENTURY, THE NUMBER OF OLIVE TREES IN MONTENEGRIN COAST HAS BEEN CONTINUOUSLY FALLING DUE TO: -Lack of interest of producers to grow the olives, -Survival of olive trees in the coastal area of Montenegro has been continuously jeopardized as a result of constellation of political, economic and social trends and developments:. Armed conflicts in our region,. Sudden industrialization and migration of rural population,. Exclusive territory, from the viewpoint of construction of tourism industry facilities. WHY? – BECAUSE Chapter 11: Agriculture and Rural Development

5. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union WHY? – BECAUSE Chapter 11: Agriculture and Rural Development OVER THE LAST TEN YEARS, THE DOWNWARD TREND IN OLIVE GROWING HAS BEEN STOPPED: -With encouraging of scientific and research work related to olives in the Centre for Subtropical Cultures, -Activities of the Extension Service, which is in charge of implementation of science in practice, through organization of technical trainings and education of producers in the field, -Implementation of agro-budget projects, results of which is setting up of new, reconstruction and revitalization of existing olive tree plantations. In the period 2007-2012: - revitalization of 62,722 old trees (294,196€) 780 households - subsidies per ha for 35,305 olive trees, i.e. ~ 116ha (228,380€) - With adoption of the Law on Olive Growing (OG RMNE 55/03) with the primary objective of protecting the olives against all attempts of deliberate physical destruction.

6. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Law on Olive Growing (OG RMNE No. 55/03), which has not been harmonized with the EU legislation. Rulebook on quality and other requirements for edible residue-olive oil (OG SCG No. 56/ 03 Law on Food Safety (OG MNE No. 14/07) RELEVANT LEGISLATION Chapter 11: Agriculture and Rural Development

7. 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 INSPECTORIAL SUPERVISION Inspectorial supervision over the implementation of the law and regulations adopted on the basis of the law, is carried out by the public administration body in charge of inspectorial supervision, through the agricultural and sanitary inspectors.

8. 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 PENALTIES According to the Law on Food Safety (OG MNE No. 14/2007) the measures provided for in case uf fraud are: - removal from the market, and - ordering destruction. - At imports: - goods may be returned to the consignor, or - at request of the importer, to order the destruction of the consignment.

9. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union  a new law on olive growing is being drafted, adoption of which is expected in the course of 2013. That Law will be the framework legal document for transposing the EU regulations in this field LATEST DEVELOPMENTS Chapter 11: Agriculture and Rural Development  In the process of drafting the law, the following EU regulations have been used: Commission Regulation (EC) No. 2568/91 Commission Regulation (EC) No. 1989/2003 Regulativa Savjeta (EC) No. 1234/2007 Commission Regulation (EC) No. 702/2007 Commission Regulation (EC) No. 61/2011

10. Thank you for your attention!