Commission Report 2002 (Slovakia)

• Progress since the last Regular Report
• Overall assessment
• Conclusion

Chapter 7: Agriculture

Progress since the last Regular Report

Since last year's Regular Report Slovakia has made good progress in several agricultural sub-sectors in terms of transposition and implementation of the relevant acquis, especially in the veterinary and phytosanitary areas.

Agriculture in Slovakia accounted for 4.6% of gross value added in 2001, compared with 4.5% in 2000. Employment in agriculture has further declined during the reporting period and accounts for 6.3% of total employment.

In 2001, overall agricultural trade between Slovakia and the EC increased significantly, largely due to the `` double-zero-agreement '' to liberalise trade in agriculture. EC imports of agricultural products originating in Slovakia increased by 49 % to EUR 139 million. EC exports to Slovakia increased by 8 % to EUR 344 million. The trade balance in favour of the Community amounted to EUR 205 million compared to EUR 225 million in 2000. EC imports were dominated by oil seeds, dairy products and beverages, spirits and vinegar. Residues from food industries, fruit and nuts and cereals were the main export goods from the EC.

Horizontal issues

Since last year's Regular Report some progress can be reported with regard to the implementation of measures related to the European Agricultural Guidance and ­ Guarantee Fund (EAGGF). The Slovak Ministry of Agriculture has taken the decision to incorporate the SAPARD Agency, Agricultural Intervention Agency and the Paying Agency Department of the Ministry of Agriculture into a single Paying Agency upon accession. The administrative structures were strengthened during the past year. The staff of the Ministry of Agriculture was reinforced by 72 new employees.

Little progress has been achieved as regards the Integrated Administration and Control System (IACS). Slovakia is still in the process of drawing up a strategy for the implementation of this system. First steps towards setting up the Land Parcel Identification System (LPIS) and the Animal Identification System (AIS) are underway. Slovakia has opted for the methodology of physical blocks to build its land parcel identification system, i.e. blocks of parcels delimited by permanent boundaries such as roads, rivers, forests, etc. Only 5% of the country is covered by aerial photographs.

As regards trade mechanisms, quality policy and the implementation of the Farm Accountancy Data Network (FADN), no further developments can be reported during the reference period.

Slovakia achieved further progress in the area of organic farming by amending the Organic Farming Act, to bring it in line with the acquis in this area. The amended Act facilitates the introduction of a clear and functional system of management in organic farming and organic food production.

Common Market Organisations Since last year's Regular Report Slovakia has made some progress in introducing a legal framework and administrative structures for the establishment of Common Market Organisations. The Act on the Organisation of Markets in Selected Agricultural Products, which provides for the establishment of the Agricultural Intervention Agency, came into force as of January 2002 and transformed the State Market Regulation Fund into an Intervention Agency. The statute of the Intervention Agency was adopted by the Government in April 2002. The Agency currently employs 22 people.

The Act empowering the Government to issue approximation regulations was amended to include the approximation in the agricultural area. However, little progress can be reported so far in adopting specific regulations organising the various markets covered by the acquis.

Slovakia has continued its preparation for the establishment of a proper market information system. However, the Act on Market Organisations does not include provisions regarding the Market Information System.

In the wine sector, Slovakia has commenced the establishment of the vineyard register, based on the output of the pilot project in a sample wine-growing area. The Ministry of Agriculture has approved the timetable for the completion of the vineyard registration, according to which it is to be completed by December 2003. An amendment to the Act on Viticulture and Winemaking, providing for further alignment with the acquis, was adopted in June 2002.

As regards animal products, the National Reference Laboratory for the Control of Milk and Dairy Products has been accredited. In the area of common classification of carcasses (SEUROP), Slovakia has adopted the Decree on the Classification of Pig Carcasses, which entered into force as of May 2002. The Decree aligns the Slovak classification system with the acquis and contains detailed requirements for training and certification of personnel in charge of the classification of pig carcasses. It also contains requirements for the registration of slaughtered pigs and the quality of pig carcasses.

Rural development and forestry Significant progress has been reached in this area with the accreditation of the Slovak SAPARD Agency, which was confirmed by the Commission in April 2002. The Commission conferred the management of five out of nine SAPARD measures to the SAPARD Agency. The Slovak SAPARD Agency currently employs 82 people, including the employees at the eight regional units (see Section A.b - relations between the European Union and Slovakia).

The Ministry of Agriculture has begun preparing post-accession rural development programmes (both the EAGGF Guarantee funded Rural Development Plan, and the EAGGF Guidance funded Operational Programme for Rural Development), concentrating particularly on the classification of Less-Favoured Areas.

Veterinary and phytosanitary issues, including food safety Since last year's Regular Report, considerable progress was made with regard to legislative alignment in the veterinary sector.

In July 2002 Slovakia adopted the new Veterinary Framework Act, which provides the legal basis for implementing veterinary rules and is due to enter into force as of 1 January 2003. Slovakia has also prepared a detailed timetable for the adoption of the legislation implementing the new Framework Act. The completion of this detailed timetable is challenging. The new Veterinary Framework Act contains provisions in the field of animal welfare.

With regard to the identification and registration of cattle, the Central Register of Bovine Animals was put in place in April 2002 and the identification of beef cattle has been completed for the big farms, while the registration of the remaining cattle on smaller farms is ongoing and due to be completed by the end of 2002. So far, out of around 650.000 bovine animals nearly 500.000 have been registered.

In the area of animal-waste treatment Slovakia is substantially aligned with the acquis. In the area of veterinary control and control of animal diseases, progress can be reported with regard to the implementation of the computerised network linking veterinary authorities ANIMO. Slovakia joined the Animal Disease Notification System (ADNS) in February 2002. Contingency plans for serious animal infections have also been prepared.

Slovakia has taken further steps to strengthen administrative capacity in the veterinary field. The staff of the State Veterinary and Food Administration was reinforced by 15 new employees (2 of them joined the European Integration Department and the other 13 were recruited to foodstuffs surveillance bodies).

Some progress can be reported with regard to completing the establishment of the Border Inspection Posts (BIPs) at the future EU external borders. Slovakia has completed construction of one out of three future BIPs, namely the BIP on the road-border in Vysné Nemecké. However the EC requirements to the quality of the construction works have not been fully met. Construction work on the railroad BIP in Cierna nad Tisou is underway and due to be completed by the end of 2002. The situation on the spot has to be considerably improved.

In the phytosanitary sector, significant progress has been made since last year's Regular Report. An amendment of the Phytosanitary Care Act relating to harmful organisms and plant-protection products entered into force as of January 2002, although the provisions relating to protected zones and plant passports will be applicable upon Slovakia's accession to the EU. This amendment provides for the registration of producers, importers and exporters as well as for the phytosanitary requirement for input of harmful organisms, plants, plant products and internal and external quarantine issues. In July 2002 the Ministry of Agriculture adopted an implementing Decree, which lays down detailed requirements for plant protection products. Another decree of the Ministry of Agriculture, specifying the administration of the Act on Phytosanitary Care in Slovakia, entered into force as of February 2002.

With regard to seeds and propagating material, the Slovak Parliament approved the amendment to the Act on Plant Varieties and Seeds, which contains provisions for the marketing of vegetable, fruit and ornamental plant propagating and planting material. In order to achieve full compatibility, the adoption of the relevant implementing legislation is required.

With regard to the administrative capacity in the phytosanitary sector, the staff of the Central Control and Testing Institute for Agriculture (CCTIA) has been strengthened by 14 additional employees. Training activities for the staff are ongoing. A new Department for organic farming, quality control of pesticides and monitoring of pesticide residues in agricultural products was established within the CCTIA. The Seed Testing Laboratory in Bratislava has been re-accredited by the International Seed Testing Association (ISTA).

As regards food safety (see also Chapter 1 - Free movement of goods), there has been some streamlining of the authorities responsible for inspections related to food safety, since following the adoption of the Act on Foodstuffs in 2002, the Slovak Agricultural and Food Inspection and the Slovak Veterinary Administration were merged into one central authority under the authority of the Ministry of Agriculture: - the State Veterinary and Food Administration (SVFA). At regional level, the official control of foodstuffs and veterinary care falls under the competence of the regional and district veterinary and food authorities.

In March 2002 Slovakia established a cross-sectoral Food Safety Commission, which consists of representatives of the Central Testing Institute, the State Food and Veterinary Administration, the Ministry of Agriculture, the Ministry of Health, the Ministry of Economy, the Ministry of Environment and several research institutes. The Commission co-ordinates the activities carried out by these institutions and focuses on the adoption of measures and dissemination of information related to food safety.

Slovakia continues to implement the BSE testing measures. These measures have been increased considerably since the previous Report, reaching almost the same level as in the EU. The alignment with the acquis has been achieved as regards epidemio-surveillance, the rendering system, the removal and disposal of specific risk materials from animal feed. In March 2002 the Slovak Government approved the quantification of costs for the implementation of measures aimed at protection against BSE for 2002.

Slovakia has made further progress in completing and implementing a national plan for upgrading food establishments to meet EC requirements. All establishments that propose to operate after accession have been inspected by the competent authority and a plan to correct any deficiencies has been drawn up. However, it must be noted that the criteria used in evaluating the establishments combined with a lack of detailed upgrading plans and the incomplete evaluation of plans by the State Veterinary and Food Administration makes that the information available needs follow-up.

Overall assessment

As regards horizontal issues, particular attention needs to be paid to further development of the legislative basis and the functioning of the Paying Agency.

Slovakia needs to accelerate its efforts with regard to preparation for the establishment of the Integrated Administration and Control System (IACS) by the date of accession, in particular with regard to the Land Parcel Identification System. Slovakia seeks to achieve the digitalisation of the blocks by end 2003. No planning has been made for the processing of applications, the field inspections, the administrative controls or the payments. Very serious efforts are urgently needed in order for Slovakia to build up an operational IACS by accession. Planning and intentions must be transformed into concrete actions according to a strict timetable. If Slovakia is to be in a position as of accession to administer and control efficiently the CAP-aided schemes, any delays to the envisaged timetable must be strictly avoided. If the required administration and control structures are not fully operational, or do not operate correctly upon accession, Slovakia will be unable to fully benefit from the support systems under the Common Agricultural Policy, or will be required to reimburse EC funds already received.

As regards the system laid down for trade mechanisms, it is currently under the responsibility of several Ministries. The Ministry of Economy is in charge of issuing import/export licences, whereas the Ministry of Agriculture serves as an advisory body. The Ministry of Finance is responsible for collecting export taxes. The Agricultural Intervention Agency provides export refunds and controls the destination of intervention products along with the Customs Office.

With regard to quality policy, the relevant acquis regarding the protection of geographical indications and designations of origin for agricultural products and foodstuffs needs to be implemented.

The adoption of the Organic Farming Act has been an important step forward in aligning Slovakia's legislation with the acquis.

As regards the implementation of Common Market Organisations, Slovakia needs to complete its legislation organising the various markets covered by the acquis. In particular, it is essential for Slovakia to prepare the specific market organisations and implementing legislation for crops and animal products. A proper legislative framework for the establishment of the Market Information System also needs to be adopted.

Slovakia needs to complete the registration of vineyards across the whole territory. The current Slovak milk quota system needs to be brought into line with the acquis.

In the area of rural development and forestry, Slovakia needs to continue preparation of the post-accession programmes, and preparation for the implementation of rural development policy, including ensuring adequate administrative capacity.

In the veterinary field, Slovakia has undertaken important steps with a view to the alignment with, and implementation of, EC legislation, notably by the adoption of the new Veterinary Framework Act. It needs, however, to make further progress in adopting and implementing legislation in order to achieve full alignment. A high degree of alignment with the acquis has been reached in the area of identification and registration of animals for cattle as well as regarding animal treatment.

Progress with regard to the establishment of the veterinary and phytosanitary controls at the future external borders of the EU remains slow. Slovakia needs to make substantial efforts to upgrade the Border Inspection Post (BIP) in Vysné Nemecké, to bring it into line with the EC standards and to start the construction of the remaining BIPs at Cierna nad Tisou and Bratislava Airport.

In the phytosanitary field, Slovakia has reached a good level in transposing and implementing legislation, but this process is not yet complete. Further harmonisation is needed in particular in the field of seeds and propagating material. It is equally important for Slovakia to ensure that all inspection bodies concerned, including Border Inspection Posts, have been established and have the necessary legal basis to correctly implement the acquis. The strengthening of the administrative capacity as well as training activities for the phytosanitary inspectors need to continue.

As regards food safety (see also Chapter 1 - Free movement of goods), Slovakia is advanced with respect to the establishment of the bodies dealing with food safety and the increase in measures to deal with BSE. While all processing establishments have been inspected and upgrading plans have been drawn up, further work is required concerning the detailed implementation of these plans. Furthermore, it is important that the criteria used in evaluating the establishments are clearly defined, that detailed upgrading plans are developed, and that a complete evaluation of the plans by the State Veterinary and Food Administration is ensured. A review of the upgrading plans and a strong monitoring of the upgrading process is crucial to achieve alignment with the relevant acquis.

Conclusion

In its 1997 Opinion, the Commission concluded that further alignment to the acquis was still necessary, although significant progress had been made in adopting the measures mentioned in the Commission's White Paper of 1995 on the Internal Market. The Commission added that particular efforts were needed on: the implementation and enforcement of veterinary and phytosanitary requirements and upgrading establishments to meet EC standards (an aspect of particular importance with regard to the inspection and control arrangements that protect the EU's external borders); strengthening administrative structures to ensure the necessary capacity to implement and enforce CAP policy instruments; and further restructuring of the agri-food sector to improve its competitive capacity. The Commission further pointed out that if such progress was accomplished, accession in the medium term should not be accompanied by significant problems in applying the common agricultural policy in an appropriate manner.

Since the Opinion, Slovakia has made considerable progress towards alignment with the EC agricultural acquis, in particular during the past year. Slovakia's legislation in this area is now largely in line with the acquis. Serious efforts are however needed to increase its administrative capacity in this sector.

Negotiations on this chapter continue, although all negotiation issues in the veterinary and phytosanitary fields have been clarified. Slovakia has been granted a transitional arrangement for public health in two establishments - a meat- and a fish-processing plant (until three years after the date of accession). Slovakia is generally meeting the commitments it has made in the accession negotiations in this field.

In order to complete preparations for membership, Slovakia's efforts now need to focus on finalising alignment; further reinforcing the administrative capacity to implement and enforce the acquis, in particular in the veterinary field and that of food safety; ensuring that establishments are duly upgraded to meet Community Standards; completing the construction and ensuring the proper functioning of the Border Inspection Posts on the EU future external borders; implementing the Integrated Administration and Control System; completing preparations for the implementation of different Common Market Organisations; completing of the legislative and administrative basis for the proper functioning of the Paying Agency. Due priority should be given to the establishment of the Integrated Administration and Control System, in particular with regard to the land parcel identification system.

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