1. Executive Summary Main findings of the evaluation

Transcription

1 Evaluation of implementation of the National Strategy for sustainable operational programmes of fruit and vegetables producer organisations in Poland for , carried out in accordance with Article 127(4) of Commission Regulation (EU) No 543/ Executive Summary 1.1. Main findings of the evaluation Since 2010, when the National Strategy for sustainable operational programmes of fruit and vegetables producer organisations in Poland for came into force, four operational programmes have been implemented in total by the following recognised producer organisations in the fruit and vegetables sectors: Grupa Producentów Warzyw Szklarniowych VEGAPOL Sp. z o.o. (VEGAPOL Greenhouse Vegetables Producers Group) since 2010, Zrzeszenie Producentów Owoców i Warzyw w Milejowie (Association of Fruit and Vegetables Producers in Milejów) since 2010, and RAJPOL Sp. z o.o. since 2011 and Grupa Producentów Owoców Witamina Sp. z o.o. (Witamina Fruit Producers Group) since Those operational programmes were approved on the basis of Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products ( Single CMO Regulation ), and Commission Implementing Regulation (EU) No 543/2011 of 7 June 2011 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 in respect of the fruit and vegetables and processed fruit and vegetables sector. The operational programmes presented by the producer organisations, developed in accordance with the National Strategy for sustainable operational programmes of fruit and vegetables producer organisations in Poland for , also took into account the following objectives specified in the above-mentioned National Strategy (...): 1. Planning of production. 2. Improving or maintaining product quality. 3. Improving turnover/marketing. 4. Training actions and actions aimed at promoting access to advisory services. 5. Environmental actions. The objective of the national strategy itself was to exploit the development capacity of producers taking into account the structures of individual organisations and the specificity of their activities. The long-term aim was to improve the offer and competitiveness by utilising available financial resources. The concept of the national strategy envisaged using producer organisations as a basic link between the production of fruit and vegetables and the trade sector. The purpose of the evaluation of the national strategy was to assess the progress made towards achieving the objectives set for the strategy as regards the results achieved, effects and efficiency. Pursuant to the provisions of the Regulation of the Minister for Agriculture and Rural Development of 21 October 2010 on the scope and application of the National Strategy in Page 1 of 34

2 operational programmes implemented on fruit and vegetables markets (Journal of Laws No 201, item 1330), the National Strategy developed for operational programmes is to be implemented by recognised organisations of fruit and vegetables producers under those operational programmes by performing approved actions assigned to individual objectives of operational programmes. The findings of the analysis show that four recognised producer organisations: Grupa Producentów Warzyw Szklarniowych VEGAPOL Sp. z o.o., Zrzeszenie Producentów Owoców i Warzyw w Milejowie, RAJPOL Sp. z o.o. and Grupa Producentów Owoców Witamina Sp. z o.o. were able to make progress towards achieving the objectives approved in their operational programmes. By implementing the actions assigned to individual objectives, the above-mentioned producer organisations implemented, as part of their operational programmes, the National Strategy for sustainable operational programmes of fruit and vegetables producer organisations in Poland for Conclusions and recommendations The results achieved revealed an improvement in the planning of production and its tailoring to market needs, an improvement in product quality, product promotion and use of environmentallyfriendly cultivation methods and technologies, which was described, inter alia, in the analysis of performance indicators showing, in most cases that progress was made towards achieving the objectives approved in the operational programmes. Therefore, the above-mentioned producer organisations implemented the National Strategy for sustainable operational programmes of fruit and vegetables producer organisations in Poland for in their operational programmes. However, on the basis of past experience of handling financial assistance for subsidising the operational fund for implementation of the operational programme by recognised producer organisations, certain factors were identified that might, from the point of view of farmers producing fruit and vegetables, contribute to a decline in the attractiveness of producer organisations as entities that should play a leading role in the market organisation process. There are also significant limitations which may have a negative impact on the number of operational programmes implemented (5 operational programmes in 2012, of which 4 were being implemented in 2011) in a situation where there were 75 officially recognised fruit and vegetable producer organisations in Poland as at 15 September Undoubtedly, the small number of producer organisations implementing operational programmes considerably limits the impact of the national strategy. Listed below are some of the reasons why recognised producer organisations are not implementing new operational programmes: 1) administrative barriers relating to the range of eligibility requirements, obligations and conditions resulting from the provisions of Commission Regulation (EU) No 543/2011 as well as from the National Strategy for sustainable operational programmes of fruit and vegetables producer organisations in Poland for and operational procedures stemming from the above-mentioned provisions of Commission Regulation (EU) No 543/2011; 2) excessively low level of funding for operational programmes (max. 4.1% of the producer organisations net sales value) in relation to the requirements and the level of complexity of the financial assistance mechanism for subsidising operational funds of recognised producer organisations (the relatively low level of revenue of many recognised producer organisations Page 2 of 34

3 does not make it possible to establish high-value operational funds and, as a consequence, limits the investment possibilities of such funds and the amount of available financial assistance); 3) insufficient knowledge among producer organisations of the mechanism for subsidising the operational fund for implementing the operational programme and low level of interest in increasing such knowledge (out of the 75 recognised producer organisations invited to the training in the implementation of operational programmes and subsidising operational funds held by the Centrum Doradztwa Rolniczego (Agricultural Advisory Centre) in Brwinów/Radom Branch, only 20 enrolled for this training); 4) lack of promotion campaigns for the implementation of operational programmes by recognised fruit and vegetables producer organisations and limited consultations to encourage potentially interested entities to make use of the mechanism under review. In the light of the above, the bodies which lay down the rules for implementing operational programmes and granting financial assistance and the national authorities responsible both for managing the national strategy and for managing payments relating to operational programmes face a challenge, as there is a need to overcome the above-mentioned problems in order to improve the attractiveness of the operational programmes themselves and the associated assistance mechanism. However, the first step towards this should be to improve the quality of the future national strategy and the management of its implementation in the near future. 2. Introduction 2.1. Purpose of the report Evaluation of the National Strategy for sustainable operational programmes of fruit and vegetables producer organisations in Poland for is oriented at the assessment of progress towards achieving the overall objectives of the strategy. The evaluation exercise was carried out by means of performance indicators relating to the baseline situation and the reporting period, i.e and To this end, the evaluators have used the results of the monitoring and mid-term evaluation of operational programmes as indicated in the annual progress reports and final reports transmitted by the producer organisations. It is assumed that the results of the evaluation in question will be used to: a) improve the quality of the strategy, b) identify any needs for significant changes in the strategy, and c) contribute to the compliance with the reporting requirements relating to the national strategy. The analysis covered a degree of utilising financial resources, efficiency and effectiveness of the operational programmes implemented. Evaluated were also the effects and impact of those programmes in relation to the objectives set out in the Strategy and, if applicable, to other objectives set out in Article 103c(1) of Council Regulation (EC) No 1234/2007. Summing up, the aim of the evaluation report is to draw conclusions useful in improving the quality of any future national strategies, and in particular to identify possible shortcomings in specifying the objectives, targets or measures eligible for support, or the needs for defining new instruments Structure of the report Page 3 of 34

4 The National Strategy evaluation report consists of six parts. Apart from the executive summary and introduction, which are preliminary, obligatory elements, the third part includes the evaluation context, i.e. the compilation of information on the national strategy from the aspect of its preparation and baseline conditions as well as a social demand for such type of document. In the fourth part the methodology used in the evaluation is described and the sources of data are presented. The substantive part of the evaluation is contained in the fifth part, where the mode of achieving the operational objectives implementing the national strategy is described. The last part contains conclusions from the evaluation, a description of the effects of the national strategy implemented and recommendations resulting from the evaluation. 3. Evaluation context A fundamental requirement for supporting entities on the fruit and vegetables market with national and EU funds is that producers shall organise themselves. The aim of operation of producer groups and organisations is the concentration of the supply and sale of products of their members, planning of production and adjusting it to the market needs, both in terms of quantity and quality, as well as reducing production costs, stabilising prices and using environmentally-friendly cultivation methods and technologies. Based on the publication of the Ministry of Agriculture and Rural Development edited by T. Jabłońska-Urbaniak 1, one may quote that producer groups and organisations emerge in regions specialising in horticultural products, i.e. Mazowieckie province (apples, mushrooms, vegetables), Kujawsko-Pomorskie (tomatoes), Wielkopolskie (vegetables, mushrooms) and Lubelskie (soft fruit, apples). This has also been confirmed by the data collected by the Agency for Restructuring and Modernisation of Agriculture (ARMA). As at 30 August 2012, in the Mazowieckie province 73 producer groups and 16 producer organisations operated on the market, in the Kujawsko-Pomorskie province 27 producer groups and 17 producer organisations, in Wielkopolska 30 producer groups and 14 producer organisations, while in the Lubelskie province 20 producer groups and 12 producer organisations. As at 15 September 2012, in Poland 229 preliminarily recognised producer groups and 75 recognised producer organisations operate, in which fruit and vegetables producers are associated. However, according to the data from the European Commission 2 for 2009, the level of market organisation in Poland denoting the ratio of the value of products marketed by producer groups and organisations to the value of total production of fruit and vegetables is still on a relatively low level in relation to the degree of organisation of the fruit and vegetables market in the EU countries, and does not exceed 12%. In turn, the average level of organisation of the fruit and vegetables market in the EU countries in 2009 amounted to about 43%. According to the description of the organisation of the Polish fruit and vegetables market presented in the National Strategy for sustainable operational programmes of fruit and vegetables producer organisations in Poland for , the level of organisation of this market in Poland is low. The analysis of strengths, weaknesses, opportunities and threats has revealed that Poland, being one of major producers of fruit, vegetables and mushrooms in Europe, incurs tangible losses due to poor organisation of the market. Despite the fact that in terms of the number 1 Jabłońska-Urbaniak, T. [ed.] (2011) Rolnictwo i gospodarka żywnościowa w Polsce. Ministry of Agriculture and Rural Development, Warsaw 2011, p European Commission (2011) Producer organisations, associations of producer organisations, producer groups, operational funds, operational programmes and recognition plans. Standard results Fruit and Vegetables Sector ver. 13/12/2011. Draft. Page 4 of 34

5 of groups and organisations the degree of organisation of the market in Poland seems to be high, in practice there is still a lot to make up for in the context of organisation of the market, as measured against the value of marketed fruit and vegetables. In recent decades producers of fruit and vegetables from the countries of the so called old EU have benefited from various forms of assistance supporting market organisations, first of all from assistance in upgrading their technical facilities. In turn, Poland since the time of accession to the structures of the European Union (May 2004) has not been prepared for integration in the context of market organisation. This fact, which entails the necessity to accelerate processes of concentration of supply in producer groups and organisations, has been taken into account in priorities of the national strategy for operational programmes. The National Strategy was developed for From the time of its publishing it was amended twice by the announcement of the Minister of Agriculture and Rural Development (MARD) of 14 December 2009 in the Official Journal of MARD No 37, item 87 and of 15 December As a result of the first amendment introduced on 5 November 2010 (Official Journal of MARD No 31, item 39 of 15 November 2010), 4 actions aimed at environmental protection were deleted. The abandoned actions were: Replacing the existing heating installations with new installations able to operate on the basis of renewable energy sources; Reconstruction and maintenance of natural retention tanks; Reduction of the consumption of fertilizers and Creation of local systems of plastic waste processing and recovery of raw materials from such waste. A reason for the deletion of these actions was the risk of overlapping with other assistance mechanisms, such as the Rural Development Programme. Pursuant to Article 56 of Commission Implementing Regulation (EU) No 543/2011, Member States shall notify the Commission of any amendments to the national framework for environmental actions. Deletion of the abovementioned actions was accepted by the European Commission. In turn, the second amendment, made on 16 August 2011 (Official Journal of MARD No 19, item 27 of 19 August 2011), introduced, among others, the demarcation line between the actions included in the Rural Development Programme for and actions included in the National Strategy ( ), with the purpose to explicitly divide funding between the common organisation of fruit and vegetables markets and the Rural Development Programme, pursuant to Article 58 of Commission Regulation (EU) No 543/2011. In accordance with Article 10 of the Act of 19 December 2003 on the organisation of fruit and vegetable markets, hop market, dry fodder market, and market in flax and hemp cultivated for fibre production (Journal of Laws of 2011 No 145, item 868, as amended), the President of the Agency for Restructuring and Modernisation of Agriculture, while submitting the annual report for 2010 and the information on the implementation of the National Strategy for sustainable operational programmes of fruit and vegetables producer organisations in Poland for , by the letter No P-955-DPiS /WSDSiŚoPB/BP/11 of 30 September 2011 presented, among others, the list of 5 problems encountered in the course of implementation of the National Strategy in The listed problems included: the problem of administrative burdens; the criterion of commonality of environmental actions making implementation of operational programmes difficult for large producer organisations; lack of attractive anti-crisis measures; preparation of investment activities oriented mainly at fruit farming organisations and interpretation difficulties concerning performance indicators. The problems defined remain relevant. As of today, the National Strategy contains a list of 30 various actions under 8 objectives. In analysing their use, Table 1 will be helpful. The table contains a summary of eligible measures, Page 5 of 34

6 their implementation by producer organisations with details on total expenditure by actions and objectives specified in the National Strategy. In the reporting period all five actions aimed at Planning of production were undertaken for implementation by three producer organisations. Out of five defined actions aimed at Improving or maintaining product quality four were undertaken by all four organisations. In turn, as regards actions aimed at Improving turnover/marketing two actions of the two defined in the National Strategy were implemented by three producer organisations (...). Training actions and actions aimed at promoting access to advisory services were implemented only by two producer organisations. Due to the obligatory nature of environmental actions, out of 13 pro-environmental actions described in the strategy, the organisations would select 4, justifying such an approach by both environmental and economic reasons. Nevertheless, among the selected pro-environmental actions in most cases only two actions prevailed: Replacement of old, traditional sprinklers or their elements with new, more environmentally-friendly ones and a complementary horizontal action: Participation in trainings, using advisory services concerning environmental protection, carrying out analyses of water and plants relating to environmental protection. Page 6 of 34

7 5/5 of actions* 4/5 of the action* 4/13 of the action* 2/2 of the action* 2/2 of the action Table 1. Summary of the actions implemented in Poland and expenditure under operational programmes in OBJECTIVE ACTION Objective 1. Planning of production total Planning of production Use of technologies of fruit and vegetables production effectively preventing undesirable fall in crops Planning of production Adjustment of the scale and range of fruit and vegetables production to the demand Planning of production Adjustment of the scale and range of fruit and vegetables production to the demand Objective 2. Improving or maintaining product quality total Use of systems of fruit and vegetables quality improvement and control, Improving or maintaining product quality and the systems of traceability of products of the fruit and vegetables sector Use of technologies boosting the commercial value of fruit and vegetables Improving or maintaining product quality by their improvement Use of modern logistic and organisational solutions enabling producer Improving or maintaining product quality organisations to improve the supply process Use of technology of fruit and vegetables production preventing a loss of Improving or maintaining product quality their quality Use of systems of fruit and vegetables quality improvement and control, Improving or maintaining product quality and the systems of traceability of products of the fruit and vegetables sector Use of modern logistic and organisational solutions enabling producer Improving or maintaining product quality organisations to improve the supply process Use of technology of fruit and vegetables production preventing a loss of Improving or maintaining product quality their quality Use of systems of fruit and vegetables quality improvement and control, Improving or maintaining product quality and the systems of traceability of products of the fruit and vegetables sector Objective 3. Improving sales/marketing total Number of producer organisations EXPENDITURES YEAR of the action s implementation OBJECTIVE ACTION Number of producer organisations EXPENDITURES YEAR of the action s implementation ,25 25% Objective 1. Planning of production total ,55 24% Vegapol ,25 second Planning of production Use of technologies of fruit and vegetables production effectively preventing undesirable fall in crops Vegapol ,58 first Milejów ,00 first Planning of production Use of technologies of fruit and vegetables production enabling to extend the period of fruit and vegetables supply Vegapol ,00 first Rajpol ,00 first Planning of production Use of ITC systems for control of the fruit and vegetables production process Vegapol ,97 first Planning of production Use of the system of the transfer of information on planning and organisation of fruit and vegetables production Vegapol ,00 first ,76 27% Objective 2. Improving or maintaining product quality total ,48 13% Use of systems of fruit and vegetables quality improvement and control, Vegapol ,48 second Improving or maintaining product quality and the systems of traceability of products of the fruit and vegetables Vegapol ,92 first sector Milejów ,00 second Improving or maintaining product quality Use of technologies boosting the commercial value of fruit and vegetables by their improvement Milejów ,00 first Milejów ,05 second Improving or maintaining product quality Use of modern logistic and organisational solutions enabling producer organisations to improve the supply process Milejów ,56 first Witamina ,54 first Witamina ,80 first Witamina ,71 first Rajpol ,00 first Rajpol ,18 first ,04 1% Objective 3. Improving sales/marketing total ,26 8% Improving sales/marketing Use of promotional marketing strategies Vegapol 4 497,00 second Improving sales/marketing Use of promotional marketing strategies Vegapol 4 735,60 first Improving sales/marketing Use of promotional marketing strategies Witamina ,04 first Improving sales/marketing Use of modern methods of selling products of the fruit and vegetables sector Vegapol ,60 first Improving sales/marketing Use of modern methods of selling products of the fruit and vegetables sector Milejów ,06 first Objective 4. Training actions and actions aimed at promoting access to advisory services total ,21 14% Objective 4. Training actions and actions aimed at promoting access to advisory services total ,95 21% Training actions and actions aimed at Training actions and actions aimed at Delivering vocational training Milejów 9 279,26 second promoting access to advisory services promoting access to advisory services Delivering vocational training Milejów ,83 first Training actions and actions aimed at Training actions and actions aimed at Use of advisory services Vegapol ,95 second promoting access to advisory services promoting access to advisory services Use of advisory services Vegapol ,38 first Training actions and actions aimed at promoting access to advisory services Delivering vocational training Vegapol 3 655,74 first Objective 5. Environmental protection total ,42 33% Objective 5. Environmental protection total ,83 35% Environmental protection Replacement of old, traditional sprinklers or their elements with new, Replacement of old, traditional sprinklers or their elements with new, Milejów ,80 second Environmental protection more environmentally-friendly ones more environmentally-friendly ones Milejów ,32 first Environmental protection Horizontal actions: participation in trainings, using advisory services concerning environmental protection, carrying out analyses of water and Milejów 8 600,00 second Environmental protection Horizontal actions: participation in trainings, using advisory services concerning environmental protection, carrying out analyses of water and Milejów 7 380,20 first plants relating to environmental protection plants relating to environmental protection Environmental protection Investments in a new technology allowing for better energy use Vegapol ,47 second Environmental protection Investments in a new technology allowing for better energy use Vegapol ,28 first Environmental protection Use of biological methods of plant protection Vegapol ,82 second Environmental protection Use of biological methods of plant protection Vegapol ,00 first Environmental protection Replacement of old, traditional sprinklers or their elements with new, Replacement of old, traditional sprinklers or their elements with new, Witamina ,00 first Environmental protection more environmentally-friendly ones more environmentally-friendly ones Vegapol ,03 first Horizontal actions: participation in trainings, using advisory services Environmental protection concerning environmental protection, carrying out analyses of water and Witamina 3 300,00 first plants relating to environmental protection Environmental protection Replacement of old, traditional sprinklers or their elements with new, more environmentally-friendly ones Rajpol ,00 first Environmental protection Horizontal actions: participation in trainings, using advisory services concerning environmental protection, carrying out analyses of water and plants relating to environmental protection Rajpol 2 027,33 first *b the term actions X/Y means the number of actions undertaken by producer organisations in in relation to the total number of actions under the given objective available in the national strategy. 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8 4. Methodology and data sources 4.1. Monitoring and evaluation In accordance with Article 126 of Commission Implementing Regulation (EU) No 543/2011, producer organisations shall ensure the monitoring and evaluation of their operational programmes by making use of relevant indicators among the common performance indicators. To this end, they shall establish a system to collect, record and maintain information useful for the compilation of those indicators. Figure 1. Structure of the system to collect information relating to the monitoring of implementation of the national strategy. European Commission Member State: Poland Head office of the Agency for Restructuring and Modernisation of Agriculture Regional Branch of ARMA Regional Branch of ARMA Regional Branch of ARMA Producer Organisation A Producer Organisation B Producer Organisation C Producer Organisation D Members of Producer Organisation A Members of Producer Organisation B Members of Producer Organisation C Members of Producer Organisation D Page 8 of 34

9 Simultaneously, pursuant to Article 127(2) of the above-mentioned Commission Implementing Regulation (EU) No 543/2011, Member States shall establish a system to collect, record and maintain information in computerised form adequate for the purpose of compiling the indicators referred to in Article 125. To this end, they shall build on the information transmitted by the producer organisations in relation to the monitoring and evaluation of their operational programmes. The producer organisations prepared their annual reports for 2010 and 2011 on the basis of the data on the marketed products obtained from their financial and accounting units and building on the information collected from their members, concerning the actions implemented in their agricultural holdings. Zrzeszenie Producentów Owoców i Warzyw w Milejowie, RAJPOL Sp. z o.o. and Grupa Producentów Owoców Witamina Sp. z o.o. derived their data for the assessment of environmental actions, i.e. data on the use of plant protection products, from the information obtained from agricultural holdings of members participating in the given action. The members declarations of the quantities of chemical plant protection products used per 1 hectare were prepared on the basis of statistics kept in agricultural holdings, from the so called integrated production notebook kept according to the specimen included in the annex to the Regulation of ARMA of 16 December 2010 on integrated production (Journal of Laws No 256, item 1722), which constitute a register of sort for procedures conducted in the given area. In turn, Grupa Producentów Warzyw Szklarniowych VEGAPOL Sp. z o.o., when calculating the average use of energy in those agricultural holdings in which the pro-environmental action was implemented, built, among others, on the data received from those members whose knowledge about the energy use was based on the information concerning the actual financial inputs for the purchase of solid and liquid fuels and the actual energy use in comparative periods. In another environmental area, i.e. improving water quality, this organisation prepared reporting data using calculations obtained from individual agricultural holdings concerning the use of biological plant protection methods. Annual reports of all producer organisations prepared, among others, on this basis, were accompanied by financial data showing the economic effects of the actions implemented. The above-mentioned annual reports had a standardised structure of data presentation, on the basis of annex W-3.27/17 Annual report on implementation of the operational programme, to the application for aid for subsidising the operational fund or settling paid out financial resources. Together with the annual report, producer organisations had to fill in the common performance indicators: 1) W-1.13/17 Baseline indicators before starting the implementation of the operational programme; 2) W-3.28/17 Financial input indicators; 3) W-3.29/17 Product indicators; 4) W-3.30/17 Result indicators; 5) W-3.31/17 Impact indicators; Page 9 of 34

10 In accordance with Article 126 of Commission Regulation (EU) 543/2011, these tasks are a part of the procedure of the monitoring and evaluation of operational programmes implemented by recognised fruit and vegetables producer organisations. However, on the basis of the above-mentioned reports prepared by producer organisations, directors of regional branches of ARMA, competent for the seats of producer organisations in the areas of which operational programmes were implemented, assessed the progress made towards achieving the objectives under the operational programmes implemented. The form for assessing the progress made towards achieving the objectives of operational programmes, complying with procedure manual KP ARiMR Forecasting of expenditure under financial assistance in the fruit and vegetables market and the monitoring and evaluation of the mode of implementing the National Strategy for sustainable operational programmes of fruit and vegetables producer organisations in Poland for , is filled by the directors of regional branches and sent to the Head office of ARMA. Any reporting data, both source (reports of producer organisations) and data aggregated at the level of the given regional branch of ARMA (assessment of the progress made towards achieving the objectives set for operational programmes prepared by a director of a regional branch of ARMA) are kept in paper format and in electronic version on the ARMA servers, in MS Outlook. The monitoring and evaluation of implementation of the National Strategy for sustainable operational programmes of fruit and vegetables producer organisations in Poland for , is conducted in accordance with Article 127(4) of Commission Implementing Regulation (EU) No 543/2011. In accordance with the Polish legislation, the evaluation of implementation of the national strategy shall be conducted by the President of ARMA, who shall forward the above-mentioned evaluation together with a consolidated annual report on the activities of preliminarily recognised producer groups and recognised fruit and vegetables producer organisations, referred to in Article 97(b) of Commission Regulation (EU) No 543/2011 to the Ministry of Agriculture and Rural Development. However, the data prepared by ARMA and aggregated with the data forwarded by the Marshal s Offices are sent by the Ministry of Agriculture and Rural Development to the European Commission. When preparing the evaluation of the National Strategy, the evaluators used also the guidelines of the European Commission AGRI-C.2/DOCTRAV/001/2011, version of 4 February 2011 on Calculation of common performance indicators. This document presents general principles for the calculation of common performance indicators in the respective table of part A of the annual report, which has to be forwarded by the competent authorities of the Member States to the European Commission by 15 November of the year following the calendar year to which the report relates. These principles helped producer organisations to prepare annual reports. Referring to Article 127 of Commission Regulation (EU) No 543/2011, monitoring and evaluation in relation to the national strategy shall be carried out by using relevant indicators among the common performance indicators referred to in Article 125 of the cited Regulation. It should be noted that producer organisations repeatedly reported difficulties in calculating performance indicators in relation to most actions. Particularly, for actions aimed at environmental protection, economic and environmental aspects may be explicitly defined Page 10 of 34

11 only to a simplified and limited extent. There is no appropriate and available literature that could facilitate setting a reference point as regards the tangible effects of environmental improvement. Producer organisations often assessed the results achieved on the basis of own experience, information provided by members agricultural holdings or expertises prepared by advisory companies. Therefore, it should be noted that there are difficulties in assessing the results of the environmental actions implemented. The evaluators used also the guidelines of the European Commission AGRI- C.2/DOCTRAV/003/2011, version of 18 October 2011 for Evaluation of national strategies for sustainable operational programmes in the fruit and vegetables sector (2012). The purpose of this document is to support competent authorities of administration of the Member States in the preparation and carrying out of the 2012 exercise of the evaluation of national strategies for sustainable operational programmes in the fruit and vegetables sector, as defined in the second paragraph of Article 127(4) of Commission Implementing Regulation (EU) 543/2011. The guidelines mainly present key methodological principles and a set of basic evaluation tools as well as the manner of performing essential tasks related to the organisation and implementation of the 2012 evaluation exercise. The guidelines of the European Commission AGRI-C.2/DOCTRAV/003/2011, for Evaluation of national strategies for sustainable operational programmes in the fruit and vegetables sector (2012) as a non-mandatory, optional document were used to a limited extent. This can be justified by the still low interest in the mechanism of operational programmes among recognised fruit and vegetables producer organisations and, as a consequence, a small survey sample, i.e. 4 producer organisations implementing operational programmes out of 75 having a recognition status. Therefore, taking into account also the rationality of implementing the assistance mechanism in recognised producer organisations, no external entity was selected for evaluation of the strategy concerned, pursuant to item 3.1 of the above-mentioned guidelines. The evaluation was prepared by the President of ARMA, pursuant to the provisions of Article 10(3) of the Act of 19 December 2003 on the organisation of fruit and vegetable markets, hop market, dry fodder market, and the market in flax and hemp grown for fibre (Journal of Laws of 2011 No 145, item 243). Moreover, it should be noted that the above-mentioned guidelines are not legally binding, hence they do not impose any mandatory requirements on the Members States as regards carrying out the 2012 evaluation exercise, apart from the requirements laid down in Article 127 of Commission Implementing Regulation (EU) No 543/2011. In relation to actions aimed at environmental protection, additional measures were used in individual environmental areas explored by producer organisations implementing operational programmes. A justification for the introduction of such a research method has been presented in part 6.2. In order to acquire measurable data, the following formulas were used for two areas of environmental actions: 1. Area of environmental actions: Improving water quality : Page 11 of 34

12 1) Percentage change of the total quantity of chemical plant protection products in agricultural holdings of members implementing the environmental action concerned: chemt chemt 1 chem = *100 chemt 1 (1), where chemt and chemt 1 mean the average quantity of chemical plant protection products in the t period (reporting period) and in the t-1 period (baseline period), respectively; 2) percentage change of the quantity of chemical plant protection products per one hectare: chem / hat chem / hat 1 chem / ha = *100 chem / hat 1 (2), where chem / hat and chem / ha t 1 mean the average quantity of chemical plant protection products per one hectare in the t period (reporting period) and in the t-1 period (baseline period), respectively. 2. Area of environmental actions: Climate change mitigation : 1) percentage change of the energy consumption for greenhouse heating per one ton of the output sold (solid fuels in tons/per one ton of the output sold, liquid fuels in litres/per one ton of the output sold): energ / prodt energ / prodt 1 energ / prod = *100 energ / prodt 1 (3), where energ / prodt and energ / prod t 1 mean the energy consumption for greenhouse heating per one ton of the output sold broken down by energy sources in the t period (reporting period) and in the t-1 period (baseline period), respectively. Moreover, during the evaluation, regional branches of ARMA and the organisations implementing operational programmes were asked the following questions: 1) description of the needs and motivations of producer organisations that were decisive factors in selecting specific actions and objectives to be implemented and achieved under the operational programme; 2) detailed description of the method used by the producer organisation for calculating performance indicators (particularly indicators of the results and impact of actions aimed at the environmental protection referred to in part 6.2) in order to assess the quality and reliability of reporting data; 3) information on problems or limitations of the used methodology of calculating performance indicators encountered by the producer organisation or the regional branch of ARMA; Page 12 of 34

13 4) description of the data sources used by the producer organisations to calculate performance indicators, included in the annual report and presenting the achievements and results of the operational programme; 5) confirmation that the given performance indicators were achieved by the producer organisation exclusively as a result of the actions undertaken under the operational programme (in the case of other factors having an impact on the results achieved, they had to be described); 6) whether the given producer organisation implementing the operational programme in the area of the regional branch of ARMA had used other sources/mechanisms of assistance (such as the Rural Development Programme), that might have an impact on the results achieved under the actions undertaken in accordance with the operational programme Data sources In accordance with Article 96(2) of Commission Implementing Regulation (EU) No 543/2011, producer organisations shall submit annual reports, accompanying applications for aid, on the implementation of operational programmes. Those reports shall concern the following: a) the achievements and results of the operational programme, based on, where relevant, the common output and result indicators set out in Annex VIII and, where appropriate, additional output and result indicators set out in the national strategy; and b) a summary of the major problems encountered in managing the programme and any measures taken to ensure the quality and effectiveness of programme implementation. Where relevant, the annual report shall specify what effective safeguards are in place, in accordance with the national strategy and in the application of Article 103c(5) of Regulation (EC) No 1234/2007, to protect the environment from possible increased threats coming from investments supported under the operational programme. On the basis of those reports, regional branches of ARMA were obliged, under the earlier mentioned procedure manual KP ARiMR, to prepare the document R-3/69 Assessment of the progress made towards achieving the objectives set for the operational programmes, as well as efficiency and effectiveness in relation to those objectives. The above obligation results from the provisions of Article 9(2)(2) of the Act of 19 December 2003 on the organisation of fruit and vegetable markets, hop market, dry fodder market, and the market in flax and hemp grown for fibre (Journal of Laws of 2011 No 145, item 243, as amended), according to which the director of the regional branch of ARMA shall monitor how producer organisations implement national strategies in operational programmes. In that document presented are, among others: the key objectives to be achieved by producer organisations in operational programmes and the problems encountered by producer organisations during implementation of the programmes in the area of the regional branch concerned. On the basis of individual assessments of the progress made towards achieving the objectives set for the operational programmes, prepared by the directors of regional branches, the President of ARMA monitors the implementation of the national strategy and evaluates Page 13 of 34

14 the manner of its implementation, in accordance with Article 10(3) of the above-mentioned Act. Moreover, when preparing the evaluation, evaluators used such survey methods as questionnaires sent to producer organisations with a request to present relevant information necessary for preparing the annual report, referred to in Article 97(b) of Commission Regulation (EU) No 543/2011, including data for carrying out the evaluation of the implementation of the national strategy in operational programmes, acquired on the basis of Article 96(1) of the Commission Regulation (EU) No 543/2011. Observations of producer organisations on the possibilities and problems relating to the implementation of operational programmes in Poland, collected during trainings on operational programmes conducted by ARMA were also used. The opinions prepared by Krajowy Związek Grup Producentów Owoców i Warzyw (National Association of Fruit and Vegetables Producer Groups) and Centrum Doradztwa Rolniczego w Brwinowie (Agricultural Advisory Centre in Brwinów)/Branch in Radom also facilitated the evaluation of the national strategy. 5. Results achieved 5.1. Evaluation questions relating to specific measures under the national strategy Main questions for the assessment of specific actions under the national strategy: 1) what actions has the producer organisation taken to achieve the objective set out in the national strategy? 2) has progress been made towards achieving the specific objective set out in the national strategy? 3) has the progress made towards achieving the objectives of the operational programme resulted exclusively from the actions undertake in course of the implementation of the operational programme or the organisation used other sources/mechanisms of assistance (such as the Rural Development Programme), that might have an impact on the results achieved under the actions undertaken and objective pursued in accordance with the operational programme? 4) if no progress was made towards achieving the objective of the operational programme, what external factors could have an impact on it? 5.2. Evaluation results relating to specific objectives and actions Actions aimed at planning of production: In the reporting period, within the above-mentioned operational objective, producer organisations undertook in their operational programmes the following actions: 1) use of technologies of fruit and vegetables production effectively preventing undesirable fall in crops: The above action was implemented in by Grupa Producentów Warzyw Szklarniowych VEGAPOL Sp. z o.o., through the purchase and installation of the growing Page 14 of 34

15 gutter system in greenhouses, improving climatic conditions by levelling the temperature in these facilities and reducing the humidity difference in the ground. According to the data included in the financial input indicators, in expenditure for the implementation of the above-mentioned action relating to the Planning of production objective amounted to PLN However, according to the data included in the product indicators in , 5 of 7 members of the producer organisation were covered with the above-mentioned action, as a result of which the action has been implemented on a considerable scale. The gutter system covered a total of 2.45 ha of the greenhouse area. 2) use of technologies of fruit and vegetables production enabling to extend the period of fruit and vegetables supply: The above action was implemented only in 2010 by Grupa Producentów Warzyw Szklarniowych VEGAPOL Sp. z o.o., through the purchase and installation of equipment speeding up the ripening of vegetables, including purchase of lamps for plant irradiation, in order to extend the harvest and supply period and, as a consequence, to improve the planning of production and to adjust it to the market requirements. According to the data included in the financial input indicators, in 2010 the total expenditure for the implementation of the above-mentioned action relating to the Planning of production objective amounted to PLN However, according to the data included in the product indicators in , the above-mentioned action was implemented by one member of the producer organisation, as a result of which the action concerned has been implemented on a small scale and with low efficiency. As a result of the objectives achieved, that action was completed after the first year of implementation of the operational programme of the above-mentioned producer organisation. 3) use of ITC systems for the control of the fruit and vegetables production process: The above action was implemented only in 2010 by Grupa Producentów Warzyw Szklarniowych VEGAPOL Sp. z o.o., through the purchase and installation of the system of controlling climatic, phytopathological and entomological conditions in greenhouses in order to exercise ongoing control of the production process and to better adjust the quality and quantity of vegetables produced to the requirements of recipients. According to the data included in the financial input indicators, in 2010 the total expenditure for the implementation of the above-mentioned action relating to the Planning of production objective amounted to PLN However, according to the data included in the product indicators, two of seven members of the producer organisation were covered with the above-mentioned action, as a result of which the action has been implemented on a moderate scale. As a result of the objectives achieved, that action was completed after the first year of implementation of the operational programme of the above-mentioned producer organisation. 4) use of the system of the transfer of information on planning and organisation of fruit and vegetables production: The above action was implemented only in 2010 by Grupa Producentów Warzyw Szklarniowych VEGAPOL Sp. z o.o., through the purchase and installation of equipment of the system of the transfer of information on vegetables production and supplies from Page 15 of 34

16 members to the seat of the producer organisation, which contributed to considerable improvement of planning and organisation of vegetables supplies to external recipients. According to the data included in the financial input indicators, in 2010 the total expenditure for the implementation of the above-mentioned action relating to the Planning of production objective amounted to PLN However, according to the data included in the product indicators, the above-mentioned action was undertaken in the area used by the producer organisation, therefore it indirectly covered all members of the organisation. As a result of the objectives achieved, that action was completed after the first year of implementation of the operational programme of the above-mentioned producer organisation. 5) adjustment of the scale and range of fruit and vegetables production to the demand: The above action was implemented in 2011 by Zrzeszenie Producentów Owoców i Warzyw w Milejowie and RAJPOL sp. z o.o., respectively, through the purchase of nursery material for the increase of perennial and permanent crops in order to adjust the offer of the producer organisation to the demand. According to the data included in the financial input indicators, in 2011 the total expenditure for the implementation of the above-mentioned action relating to the Planning of production objective amounted to PLN in the case of Zrzeszenie Producentów Owoców i Warzyw w Milejowie and to PLN in the case of the producer organisation RAJPOL Sp. z o.o. However, according to the data included in the product indicators, 53 of 154 members of Zrzeszenie Producentów Owoców i Warzyw w Milejowie and 12 of 55 members of the producer organisation RAJPOL Sp. z o.o. were covered with the above-mentioned action, as a result of which the action has been implemented on a moderate scale. Evaluation of implementation of the actions aimed at planning of production: When selecting the above-mentioned actions for implementation under the operational programmes, the producer organisations were driven by the assumptions and objectives they had set for themselves in the areas requiring financial intervention, taking into account an analysis of the baseline situation, own needs and the needs of their members. According to the data included in the result indicators, the implementation of the above-mentioned actions within the Planning of production objective in contributed to the increase in the volume of the output sold: 1) by tons, in relation to tons in total within the baseline period, i.e. before starting the implementation of the operational programme in the case of Grupa Producentów Warzyw Szklarniowych VEGAPOL Sp. z o.o.; 2) by tons, in relation to tons in total within the baseline period, i.e. before starting the implementation of the operational programme in the case of Zrzeszenie Producentów Owoców i Warzyw w Milejowie; 3) by tons in relation to tons in total within the baseline period, i.e. before starting the implementation of the operational programme in the case of RAJPOL Sp. z o.o. The above data indicate the controlled increase in the output of the above-mentioned producer organisations, corresponding to the demand for fruit and vegetables. Therefore, the assumed objective of the national strategy concerning the planning of production is being achieved. Page 16 of 34