07.01.2009

Common market organization

It is possible to provide supports for the common market organization measures aimed at market organization with plant and animal commodities and support of export in frames of Common Agricultural Policy.

Basic classification of the allowed forms of support of common market organization

Market Mechanism – export refunds for agricultural and Non Annex products
Plant Commodities – the organization of the market with plant commodities
Animal Commodities - the organization of the market with animal commodities

INFORMATION ON VARIETY OF SUPPORTS

Trade Mechanisms

The payment of supports in frames of trade mechanisms (export refunds) is preceded by granting export licences and advance fixing certificates and accepting financial securities.

Export refunds for agricultural products
- which mean export refunds for basic agricultural products. The aim is to balance the higher level of prices within the Community and the lower level of the world market. The biggest capacity of export with the export refund is represented by 1-day chickens and deep-frozen poultry.

The export refunds for Non Annex I products
- means the export refunds for basic products and their components derived from the basic components of the agricultural products not falling under the measures of the Common Agricultural Policy including substantial quantities of agricultural components (so called basic products). The group of Non Annex 1 products includes a large scale of products from chocolate, baby’s nutrition, pastry, sweets and candy, soft drinks to some alcoholic beverages and modified starch. The biggest capacity of export is represented by export of chocolate and whipped cream in sprays.

Plant Commodities

Interventions
Buying, storage, sale (cereals, sugar) – the instrument for regulation of internal market of the EU member states with selected products from plant commodities (cereals, sugar) with specified intervention price equal in whole EU. The interventions are not realized nowadays.

Production refunds (for the sugar used in chemical industry, in cereal and rice segment)
- serve as the support for non alimentary use of the sugar and other products in the sugar sector, first of all processing of the sugar in the chemical and pharmaceutical industry. Production refunds equals to zero at this time.

The supports for the restructuring of the sugar industry
- mean supports for the beet growers and sugar producers for the purpose of reduction of quotas or closing sugar factory.

Payments for potato growers
- are assigned to growers of potatoes for starch production with the signed delivery contracts with processing plant.

Manufacturing premiums for starch producers
They mean premiums for starch producers who have a signed delivery contracts with potato growers.

Support for processing undertaking for dried fodder
- is paid to authorized processing undertakings for dried fodder made from own production or production of other producers.

Support for hop for recognized market organizations of producers and individual growers
- is paid to recognized market organizations of producers and individual growers for registered and harvested areas.

Supports of the group of producers, supports for operational programme, supports for the processors of tomatoes and peaches
- are not directly granted to individual growers, but to registered organizations of producers.

Support for restructuring and conversion of vineyards
- concerns the variety transformation including re-grafting, re-location of vineyards and improvement of techniques of administration of vineyards on the basis of the Regulation of the Government of the Slovak Republic No. 185/2008.
The Ministry of Agriculture of the Slovak Republic worked out drafts of the Regulation of the Government of the Slovak Republic on conditions of granting supports for measures of the CMO for vine.

Support for special use
- is established for the use of grapes, must and concentrated grape must and rectified concentrated grape must produced in the Community for grape juice production and for use of concentrated grape must and rectified concentrated grape must to increase the natural alcoholic strength by volume of the wine products.

Obligatory by-products distillation
It means that wine producers are obliged to deliver marcs, wine and lees for distillation to the authorised distiller.

Private storage of the table wines, grape must, concentrated grape must and rectified concentrated grape
Every producer who has the signed contract on storage with APA is entitled for the support in case of observing obligation of not put into circulation of the products subject to the contract.

Animal Commodities

Interventions
Buying, storage, sale (butter, milk powder, beef) – tools of the regulation of the internal market of the Community and for selected commodities of animal origin (butter, milk powder, beef) with the amount of intervention fixed in advance. The interventions are not realized nowadays.

Support of consumption of milk in schools
It means support for consumption of milk and milk products for school children (compulsory school attendance) according to the special rule. The support shall be provided for the milk subjected to a process of heat treatment.

Support of sale of butter for reduced prices at pasta, ice-cream and other foodstuffs production
It means indirect support of consumption of butter or cream used in manufacturing of the final food product.

Support for the milk for feeding purposes
It serves for the use of skimmed milk powder in manufacturing of milk fodder.

Support for the purchase of butter by non-profit making organisations
Support for purchase of butter by non-profit organisations for the home consumption.
Private storage of milk products, butter, cream, cheeses, pig-meat, beef, sheep meat and goat meat
The support is intended for the storage of the above mentioned commodities in the own or hired store-houses (not in the store–house owned by the APA). Up to now there was only one contract on private storage of pig meat signed by the APA.

Contribution to the tender for concentrated butter for immediate consumption
It is dedicated to producers of the concentrated butter for immediate consumption within Community (restaurants, hotels, hospitals, etc.) under condition the butter has not been the subject of intervention or storage.

Support of executing measures for improvement of conditions for the production and marketing of apiculture product
Support is dedicated to beekeepers applying for support through the nation-wide civil association operating within the scope of bee rearing and apiculture in the Slovak Republic.

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