EU-Report Accession Bulgaria

Chapter 7: Agriculture

Since the last Regular Report, Bulgaria has made steady progress in this area on alignment of legislation and institution building. Progress has been more limited in the enforcement of legislation.

Agriculture in Bulgaria accounted for 13.8% of gross value added in 2000, compared to 16.2% in 1999. Employment in agriculture accounts for 26.7% of total employment.

In 2001, overall agricultural trade between Bulgaria and the EC increased significantly, largely due to the ``double-zero-agreement'' to liberalise trade in agriculture. EC imports of agricultural products originating in Bulgaria increased by 15% to EUR 247 million. EC exports to Bulgaria increased by 8% to EUR 291 million. The trade balance in favour of Bulgaria amounted to EUR 44 million compared to EUR 55 million in 2000. Meat, wines and oil seeds dominated EC imports. Meat, fruit and nuts, cotton and essential oils were the main export goods from the EC.

Since the last Regular Report, Bulgaria has taken further steps in developing its agricultural policy. In 2001, a total sum equivalent to EUR 148 million was allocated to agriculture.

In its 2001 Programme released in October 2001, the Bulgarian Government identified five priorities for the agriculture and forestry sector: efficient management of land and forest resources and development of market structures; enhancement of the competitiveness of the farming and processing sector, and creation of conditions for export orientation of agriculture; preparation for introduction of the requirements of the EC internal market and the elements of the Common Agricultural Policy; sustainable development of rural areas, improvement of living conditions for employees in agriculture and forestry and for residents of rural areas; and environment-friendly sustainable management of forest and hunting resources and protected wilderness tracts.

A Consultative Council on Agriculture was set up in March 2002. Its task is to draw up a national strategy on the development of agriculture in the next seven years in order to achieve a level of production and development that will facilitate integration into the European Union.

The process of restitution of ownership of agricultural land has been completed. At the end of 2001, 91% of woodlands and forests had been restituted. The preparation of a national cadastre and property register is under way. However, in spite of this, the number of transactions and prices of agricultural land remains low because of factors such as fragmented plots of land with shared ownership, lack of documentation in land registries and slowness of handling of legal disputes. Cadastral maps have been designed for over 90% of this country's territory in connection with land and forest restoration. However, these maps do not yet provide the necessary legal certainty.

Horizontal issues Bulgaria has not yet established a Paying and Intervention Agency but has decided to establish a Paying and Intervention Agency consistent with EC requirements within the State Fund Agriculture by 2005. It is to constitute a single Paying and Intervention Agency, channelling both European Agricultural Guidance and Guarantee Fund (EAGGF) support and national funds for support to agricultural producers.

Further progress was made on the key registers, on which the Integrated Administration and Control System (IACS) will be built, in particular with the system for the identification and registration of animals and the identification system for agricultural parcels.

On organic production, Bulgaria adopted further legislation in September 2001 aimed at implementing the acquis on preparation, marketing, labelling, inspection and import of organic products. A Commission on Organic Farming was established as a consultative body in particular for the approval of the control bodies. Its operational rules were adopted in February 2002.

There have also been further preparations for Bulgaria's participation in the Farm Accountancy Data Network (FADN) through work to determine the typology of farms, and progress on transferring operational know-how concerning FADN, which started in April 2002.

Common market organisations Feasibility studies for the alignment and implementation of CMOs in the wine and meat sectors are underway. The studies cover legal, institutional and economic aspects and proposals on how to introduce CMOs in Bulgaria.

Concerning arable crops, in the cereal sector, no new legislation has been adopted. The intervention centres for buying-in of cereals were identified in 2001. An analysis carried out in 2001 provided recommendations about the introduction of a cereal CMO.

As regards specialised crops, in the fruit and vegetables sector, an Ordinance on the quality requirements and conformity checks on fresh fruit and vegetables was promulgated in March 2002.

In the tobacco sector, legislation has been introduced to fix the prices of tobacco products of local origin and of imports. In March 2002, the process of privatising the national tobacco holding company started.

In the wine sector, a number of ordinances have been adopted since the last Regular Report. These cover terms and procedures for planting, replanting, grafting and grubbingup of wines and on the rules for classification of wine varieties, the control of production potential through the introduction of planting rights, the accompanying documents for the movement of wines and products made of grapes, the rules for the production of regional wines and the classification of vine areas, the declaration system for vine-derived products and a control system based on actual checks of the declarations. Bulgaria is also carrying out a regional pilot project to set up administrative controls over wine production potential, including a register of wine producers. Since the last Regular Report, progress has also been made in establishing Vine and Wine Chambers in all regions and these have recruited personnel.

In relation to animal products, no new developments can be reported.

Rural development and forestry Bulgaria's practical experience with the SAPARD programme contributes to the preparation for the implementation of the EC rural development measures (see Section A.b.-- Relations between the European Union and Bulgaria). Rural development is an important part of the Bulgarian Government Programme 2001, with 2 priorities out of the 5 agricultural ones. Progress has been made regarding co-ordination between institutions in the rural development and regarding the drafting of the National Agri-environmental Programme.

With regard to forestry, in March 2002, the Minister of Agriculture and Forests and the Interior Minister signed a joint memorandum laying down the most urgent measures for forest fire prevention.

Veterinary and phytosanitary issues, including food safety Since last year's Regular Report, approximation of legislation in the veterinary and phytosanitary sectors has progressed well. Further efforts are still necessary in the transposition of the acquis and much remains to be done in the field of enforcement of veterinary/hygiene control standards.

In the veterinary sector, a number of regulations have been adopted since the last report on the identification of small ruminants, on prophylactics, on the implementation of the computerised network linking veterinary authorities ANIMO, on border inspection, on the measures to monitor residues in live animals and animal products and on the placing on the market of meat.

In the field of animal health, the National Veterinary Service (NVS) has developed detailed surveillance and monitoring programmes for various animal diseases and the response to the bluetongue outbreak in 2001 was satisfactory. The Animal Disease Notification System (ADNS) has been operational since the end of 2001.

With regard to animal welfare, progress was made with the adoption of ordinances on the protection of laying hens and on the slaughtering conditions. The NVS appointed veterinary experts in all 28 regions to control the implementation of regulations but further efforts are needed on the actual enforcement of rules.

Animal identification and animal holding registration has made good progress and the identification of bovine animals has been completed although some further improvements are needed (e.g. in 17 of the 28 regions, bovines have only one ear-tag instead of double tags and metal tags need to be replaced by plastic). As for small ruminants, an Ordinance on the identification of small ruminants (goats and sheep) was adopted in November 2001 and work on ear-tagging started in April 2002. The introduction of EUROVET in one region, a system compatible with ANIMO and SHIFT, was successfully completed at the end of 2001 and it is being installed in the remaining NVS regional offices.

Bulgaria has started the implementation of its integrated programme for border veterinary control and the construction of the post at Kapitan Andreevo on the border with Turkey has started. Bulgaria initiated BSE epidemiological surveillance in 2001 but needs to ensure this is fully in line with EC requirements. Laboratories for BSE diagnostics have been refurbished and BSE rapid test kits were delivered.

Some progress was made with the adoption in March 2002 of an Ordinance for the disposal and processing of animal waste, aimed at further aligning with the acquis.

In the phytosanitary sector, good progress has been made on the application of legislation since the last Regular Report in particular in the field of harmful organisms and plant protection products. Some laboratories and five border inspection posts have been equipped and the central office, the 15 regional services and the 13 units have also received information technology equipment.

The National Service for Plant Protection, Quarantine and Agro-Chemistry, renamed the National Service for Plant Protection (NSPP), was reorganised. The general reduction in the number of staff in autumn 2001 seriously affected the NSPP regional offices.

Since the previous Regular Report, approximation of legislation in the phytosanitary sector has progressed well. In November 2001, amendments to the Plant Protection Law introduced the general legal framework for the use of plant protection products and establish a legal basis for the adoption of Regulations providing for detailed rules. These amendments introduce in particular a licence regime for testing, import and trade and a control system for the use, storage and movement of these products.

Bulgaria has transposed Directives relating to the control of potato diseases and made good progress on the adoption of legislation and implementing legislation on phytosanitary control. Further steps have been taken towards development and implementation of quality assurance schemes for phytosanitary control and phytosanitary inspectors have been trained in border inspection.

In the field of registration of plant protection products, a system of internal quality control has been developed and steps taken towards development of a comprehensive Good Experimental Practices scheme.

Amendments to the basic Seeds Law were adopted at the end of March 2002 and preparation of legislation related to seed and propagation material is currently being further harmonised with EC Directives and international rules. With regard to plant variety registration and seed certification, officials have been trained in field inspection.

As regards food safety, further progress has been made in the adoption of implementing legislation. On food safety standards, progress was made since the last Regular Report. However, most facilities and equipment used by the food processing industry are obsolete and fail to meet the requirements for safety and hygiene of the national legislation.

Overall assessment

In the area of horizontal measures, priority should be given to establishing the capabilities to operate CAP support regimes in particular the Integrated Administration and Control System (IACS). Bulgaria does not yet have a system for the administration and control of payments similar to the IACS, and needs to continue its preparations for the establishment of this to become operational by its target date of 2005. The key registers on which the IACS system will be built have been partially created. They include the statistical register of agricultural producers and holdings, the alphanumerical system for the identification and registration of animals and the identification system for agricultural parcels.

Bulgaria is at an early stage in the development of Common Market Organisations (CMOs). Further progress should be made in the field of implementation of the CMOs for arable crops, sugar, fruit and vegetables and animal products (carcass classification and labelling system). In the milk sector in particular, there is a need for a clear strategy and to ensure that all dairy plants respect the regulatory framework.

In the wine sector, further work is needed to set up a vineyard register, and to ensure proper control of production potential. In addition grape and wine producers could usefully be more involved in the decision-making process in this sector.

Bulgaria has demonstrated an increasing commitment to rural development and has made concrete progress with the implementation of rural development programmes.

As regards land reform, Bulgaria has to continue work for the creation of the national cadastre and property register in order to improve the situation of the land market. Work on consolidation of land needs to be continued.

In the veterinary sector, the National Veterinary Service (NVS) is generally well structured and reliable. Inspectors are well-qualified. The total number of staff in the NVS is 2 785 (658 people for animal health, 898 for public health, 255 for border veterinary control and 227 for laboratory control), including 1 676 veterinarians. Staff of the NVS have received training in the area of animal health and public health. However, there needs to be better control of inspectors who apply control procedures, especially at the border.

Concerning animal health, the situation in Bulgaria is generally acceptable but there are some shortcomings, for example in certain regions improved supervision of the regional and district level by the central level is required.

Concerning animal welfare, further training is needed for official veterinarians. Producers' associations should also be informed of the need to apply animal welfare rules and on enforcement methods.

Regarding animal identification, registration and movement control, the EUROVET system still needs to cover the whole territory of Bulgaria and loading of data needs to be completed to enable improved surveillance of the epidemiological situation in Bulgaria and allow unrestricted trade of livestock and animal products to recommence with the EC. Identification of all ruminants by double plastic ear-tagging should be completed. Bulgaria must now guarantee an effective functioning of its registration system supported by an adequate system of controls and sanctions. Special attention should be placed on the registration of animal movements.

Concerning establishments, slaughterhouses are old and equipment needs to be modernised. Procedures are not always followed and controlled.

Bulgaria has established a programme to upgrade the agri-food establishments, including an identification of shortcomings and deadlines to correct them until 2005.

As regards animal waste, significant further efforts are needed. Systems for collection of animal waste need to cover the whole territory of Bulgaria. Collection and processing of risk materials should be done separately. Severe deficiencies remain in rendering plants. Whilst Bulgaria has a feed ban on processed animal proteins, this is not in line with EC requirements and cross contamination of ruminant feed with animal proteins for ruminants and cross feeding remains likely.

A system of certification of internal movements is in place for animals and products. However, these documents do not always contain the necessary guarantees to support export certification.

The programme of upgrading of the Veterinary Border Inspection Posts needs to be continued for all 8 long-term Veterinary Border Inspection Posts. Concerning BSE, investigation of BSE epidemiology and use of approved diagnostic methods should be improved. In general, in the field of TSE controls there are still discrepancies compared to the EC system and considerable further efforts are necessary.

In the phytosanitary sector, progress on harmonisation with the acquis continues, but the National Service for Plant Protection (NSPP) needs adequate resources to implement it.

Concerning control and certification of seeds and planting material, a number of ordinances still need to be adopted, following the amendments to the basic Seeds Law.

In respect of food safety standards, most EC Directives have been transposed into Bulgarian law but some have not yet entered into force. However, considerable work needs to be done on implementation and enforcement. The various services responsible for food safety have well-qualified staff, but the co-ordination of tasks between the NVS and the Hygiene and Epidemiological Inspectorate and the Chief Directorate of Feeding Stuffs Control should be clarified. Investment is required in the control service. It is important that training of all staff in relation to requirements of the acquis is given a high priority. In food safety controls, priorities are mainly focused on premises, equipment and their maintenance rather than on procedures, control systems and certification. The main bodies responsible for food safety matters in Bulgaria are the Ministries of Agriculture, Health and Economy under the co-ordination of the National Council for Food Safety within the Council of Ministers. The main framework legislation on food safety has been transposed and is in force.

Conclusion

In its 1997 Opinion, the Commission concluded that Bulgaria had made very limited progress in adapting to the Community acquis and that considerable sustained effort would be needed with regard to restructuring the agriculture and the agri-food sectors and reform of agricultural policy to prepare to apply the acquis. It noted that particular efforts were needed in relation to: the adoption, implementation and enforcement of veterinary and phytosanitary requirements and upgrading of establishments to meet EC standards, particularly with regard to the inspection and control arrangements for protecting the EU external borders; strengthening of the administrative structures to ensure the necessary capacity to implement and enforce the policy instruments of the CAP; restructuring of the agricultural and agri-food sector to improve its competitive capacity. The Opinion went on to note that fundamental reforms would be necessary before Bulgaria would be able to meet the obligations of membership.

Since the Opinion, Bulgaria has made considerable progress in adopting legislation and steady efforts to organise its administrative structures. Some specific progress can also be reported in the adoption of legislation in the wine sector. Substantial efforts will be necessary to develop the necessary administrative, inspection and control mechanisms.

Negotiations on this chapter continue.

Bulgaria needs to focus further efforts on enforcement of legislation, in particular in the veterinary sector and ensure appropriate controls. Particular attention should also be paid to developing the administrative capacity necessary to administer and enforce the acquis, including preparations for the setting up of the Integrated Administration and Control System. Bulgaria also needs to ensure the functioning of markets. In the dairy sector in particular, further effort should be made to ensure organisation of production and processing. With regard to BSE, Bulgaria needs to take action to guarantee full conformity with EC requirements in the field of epidemiological surveillance, animal waste treatment and rendering activities.

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