Horticultural Forum 2015

Transcription

1 Horticultural Forum 2015 FVPO-s in Latvia. Historical background, outputs to the market Kristine Brunovska / KS Baltijas Dārzeņi Marite Gailite / Latvijas Dārznieks (Latvia)

2 FVPO Fruit & Vegetables Producers Organisation The legal basis: At first time PO were established in accordance with Council Regulation (EC) No 2200/96 on the common organisation of the market in fruit and vegetables. In 2007 common organisation of agricultural markets was reformed and COUNCIL REGULATION (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation) COMMISSION IMPLEMENTING REGULATION (EU) No 543/2011 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 sectors were adopted.

3 The 2007 CMO reform aimed: to strengthen the fruit and vegetable producer organizations (POs) by providing a wider range of tools to make it possible, among other measures : to prevent and manage market risks, as well as enhancing and concentrating supply, improving quality and competitiveness, adapting supply to match the market, and providing technical support for environment-friendly production

4 Tasks of PO s: ensuring that production is planned and adjusted to demand, particularly in terms of quality and quantity; concentration of supply and the placing on the market of the products produced by its members; optimising production costs and stabilising producer prices.

5 National strategy In accordance with (EU) No 543/2011 Provisions should be laid down establishing the scope and structure of the national strategy for sustainable operational programs and the national framework for environmental actions. The aim shall be to optimise the allocation of financial resources and to improve the quality of the strategy. Such national strategy was developed and all national rules about FVPO s are consistent with those. For a lot of old FVPO s in EU-15 establishing of national strategy and operation programs for more years were a big problem. For Latvian growers conforming to new rules was more simply.

6 Latvian national legislation were prepared in collaboration with vegetable growers association Latvijas Dārznieks and Latvian fruit growers association Terms of Latvian Ministry of Agriculture No. 821 (2008) about Fruit and vegatables producers groups recognition, its working rules and controls and the procedure about grant administration and controls of the State and EU support for FVPG s. Terms of Latvian Ministry of Agriculture No. 453 (2011) about Fruit and vegatables producers organizations recognition, its working rules and controls and the procedure about grant administration and controls of the State and EU support for FVPO s

7 Structures and activities of producer organisations PO shall to have at their disposal the staff, infrastructure and equipment to ensure their essential functioning, in particular as regards: (a) the knowledge of their members production; (b) collecting, sorting, storing and packaging the production of their members; (c) commercial and budgetary management; (d) centralised book keeping and a system of invoicing.

8 Producer organisations main activities 1. The main activity of PO shall relate to the concentration of supply and the placing on the market of the products of its members for which it is recognised. 2. PO may sell products from producers that are not a member of PO nor of APO, where it is recognised for those products and provided that the economic value of that activity is below the value of its marketed production. 3. The marketing of fruit and vegetables that are bought directly from another PO and of products for which the PO is not recognised shall not be considered as forming part of the PO s activities.

9 Democratic accountability of producer organisations 1. Member States shall take all measures they consider to be necessary in order to avoid any abuse of power or influence by one or more members over the management and operation of PO, which shall include voting rights. 2. Where PO is a clearly defined part of a legal entity, Member States may adopt measures to restrict or prohibit the powers of that legal entity to modify, approve or reject decisions of PO.

10 Operational fund POs in the fruit and vegetable sector may set up an operational fund to finance operational programmes approved by the Member States. Those funds are financed by contributions from the PO s members or the PO itself and by EU financial assistance, and this cofinancing fosters commitment on the part of beneficiaries and helps ensure that they make good use of the assistance, as well as having a multiplier effect.

11 Operational programmes Operational programmes in the fruit and vegetables sector shall have two or more of of the following objectives: (a) planning of production; (b) improvement of product quality; (c) boosting products commercial value; (d) promotion of the products, whether in a fresh or processed form; (e) environmental measures and methods of production respecting the environment, including organic farming; (f) crisis prevention and management.

12 Crisis prevention and management shall be related to avoiding and dealing with crises on markets and shall cover in this context: (a) market withdrawal; (b) green harvesting or non-harvesting of fruit and vegetables; (c) promotion and communication; (d) training measures; (e) harvest insurance; (f) support for the administrative costs of setting up mutual funds.

13 The Community financial assistance 4,1 % of the value of the marketed production of each PO That percentage may be increased to 4,6 % of the value of the marketed production provided that the amount in excess of 4,1 % of the value of the marketed production is used solely for crisis prevention and management measures. For such crises like E.coli 2011 or Russian embargo caused crisis now this percentage is too low.

14 In Latvia operational program fund may include: Up to 70 % - production planning Up to70 % improving of recognized products quality Up to 50 % improving of marketing and commercial value of recognized products increasing; Up to 30 % research and experimental production; Up to 30 % educations measures; Up to 30 % crises prevention and management; Up to 30 % environmental actions;

15 In Latvia PO s members should to sell all recognized products through PO, not more 25% they may to sell to end users (directly from holding or on producers markets).

16 Latvian experience First vegetables growers cooperative Mūsmāju dārzeņi (6 members) was organized 2006 in accordance with (EC) No 2200/96 and national Terms of Latvian ministry of Agriculture and recognized 2008 in accordance with new rules. In 2012 it was recognized as PO. Now there are 10 members vegetables growers in open field. Products : cabbages, carrots, cauliflowers, onions, red beet, gherkins, pumpkins and courgettes, swedes, radishes etc. Second PO Baltijas dārzeņi was organized as cooperative in 2005 and recognized as PG in 2008 (13 members). As PO it was recognized in 2013 (15 members). Products: carrots, cabbages, red beet, onions, cucumbers, tomatoes, lattuces and others vegetables in open field and glasshouses.

17 FVPO and FVPG producers cooperation In total in Latvia aid paid for PG and PO after 2007 is 22 milllions EUR 17

18 What are PO recognition criteria? 5 members + to invent for which products to recognize!!! The minimum value of marketed products (12 month prior to application): EUR PO only fruits and soft fruits production EUR PO both vegetables and fruits and soft fruits production EUR - PO only vegetables production There is no tax debt Implements action meeting the objectives of PO, including environmentally friendly production practices, providing assistance to members PO provides commercial and budgetary management. It doesn t have a dominant position on market. If PO is established less than one year prior to submitting, marketed products value is calculated as the average value of their marketable production of their members 18

19 How to become a PO recognisation in Latvia? 1.step 2.step PO operational program is strongly required to cope : 2 or more environmental actions or Not less than 10% of operational program costs should be spent to environmental actions 19

20 Location of holding is not barrier to cooperation

21 Both PO s has increased production value in 5 years Mūsmāju dārzeņi Baltijas dārzeņi Total mm EUR 1.8 mm EUR 3.93 mm EUR mm EUR mm EUR mm EUR

22 Some examples of operational program use

23 Most popular investments are storages facilities and storage boxes as well, as harvesters and planting machines.

24 Concentration of supply 2013 Glasshouses total, CSB Total area, ha PO Baltijas dārzeņi share of glasshouse produce, 2013 From it, heated glasshouses Cucumbers, t 65.7 Big farms Baltijas dārzeņi (BD) The BD share of total glasshouse produce The BD share of big farms produce % 78 % % 81 % Tomatoes, t % 87 %

25 In Latvia 2 Po`s produce the biggest volume of vegetables in open field For SAP notified vegetables areas in total (ha), 2014 PO, ha Of them Other commercial producers, ha Commercial producers in total, ha Carrots Cabbages Cauliflower and broccoli

26 PO s is great possibility for glasshouses farms Now in Latvia 10 glasshouses farms produce approx 80-90% of all vegetables in covered areas. 5 farms of them are members of PO Baltijas dārzeņi. Operational fund 4.1% of marketed produce value (not from profit!) is a great opportunity to modernize production and to improve competitiveness. This is especially important for glasshouses that don`t become any other financial support.

27 Some examples of operational program use Boxes washing machine Plant rests removal from glasshouse

28 Some examples of operational program use Biological plant protection (predators and bumblebees) Hot water storage tank

29 Any questions? Thank you for attention!