Possibilities of state support for organic sector development

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1 Possibilities of state support for organic sector development Jiri Urban (advisor of FiBL and GIZ project in UA) FiBL Division International UKZUZ Institute for supervising and testing in agriculture Czech Republic International Conference Organic Market Development in Ukraine Kiev,

2 New publication of FiBL in Ukraine language experience from other countries of the world standards, legislation, regulations inspection and certification support for marketing subsidies education and promotion

3 Organic farming is the part of the EU's Common Agricultural Policy (1) The EU supports the greening of the whole of European agriculture. All farmers must respect the rules of Good agriculture practice, which is monitored in the framework of the CC inspections (Cross-Compliance). Also methods of integrated plant protection (that is, reducing the use of chemical pesticides) are part of the Good agricultural practice.

4 Organic farming is the part of the EU's Common Agricultural Policy (2) Only the Organic agriculture (OA) is in the EU recognized by a special law as a higher standard and is supported by subsidies beyond the normal aid. Organic food is supported within the framework of the food quality programs of the EU. Why is organic agriculture in Europe and in other countries of the world supported?

5 Organic farming is the part of the EU's Common Agricultural Policy (3) OA is an ideal example of "multifunctional agriculture In addition to the production of high-quality food have agriculture also other objectives: - protection of environment and conservation of nature and biodiversity - animal welfare - employment in rural areas and so on collectively, we call this "public goods" These advantages brings organic farming not only in the EU, but also in Ukraine and anywhere in the world!

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7 Possibilities of state support for organic sector development DIRECT SUPPORT - SUBSIDIES But I spoke about it in detail last year and is not real, that Ukraine could pay this direct subsidies for farmers. Subsidizing conversion and permanent subsidies under agri-environmental measures Subsidies for certification and inspection costs (France, The Netherlands, Poland ) Loans with lower interest rates for example Turkey: Since 2004, special loans for organic farmers and organic food processors are available at the Agricultural Bank of Turkey

8 Possibilities of state support for organic sector development Subsidies to buy organic food for schools and state institutions. New budget in Denmark for 60 % organic food public kitchens Every day 500,000 meals are served in the public sector in Denmark. In the future 60 % of the food in hospitals, schools, care homes and other public institutions will be organic. In the new proposal for the national budget, the Government has reserved 72 million DKK (close to 10 million euros) over two years to convert public kitchens to use more organic food.

9 Possibilities of state support for organic sector development INDIRECT SUPPORT This mainly involves: Effective legislative support including a functioning (stateguaranteed) system of inspection and certification. Support for marketing, promotion. Research and education. Support of NGOs and institutional support

10 Possibilities of state support for organic sector development INDIRECT SUPPORT Effective legislative support including a functioning (state-guaranteed) system of inspection and certification. This issue is also in the Ukraine very important (new organic law and its implementation). The FiBL organic project is ready to actively participate in the working groups for the preparation of detailed rules.

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15 Possibilities of state support for organic sector development INDIRECT SUPPORT Support for marketing, promotion- the Czech example: Organic Food promotion campaign a total subsidy of 1 million EUR. Barták Pot and Minister s Awards support for announcement of the best organic farm of the year and Czech organic personalities September - Organic Food Month promotion of organic food Organic Food of the Year support for the competition Etc

16 Indirect support the Czech example The Ministry is the owner of the green national organic logo and provide for state money the protection of the logo and his promotion!

17 Possibilities of state support for organic sector development INDIRECT SUPPORT Research and education. The Netherlands: 10% of financial means for agricultural research and science goes exclusively to projects on organic farming. Germany: Massive support for research, education and consultancy within their Organic Farming federal programme. More countries: Organic programs on agricultural schools and universities.

18 Support of NGOs and institutional support Canada: The Canadian General Standards Board s (CGSB) Technical Committee on Organic Agriculture is a consortium of 60 people representatives throughout the sector, they draw up regulations and rules for organic farming in cooperation with the state. France: Agence Bio (The French Agency for Development and Promotion of Organic Farming) is the OF-supporting state agency that was established in 2001 to develop and promote organic agriculture. Main activities: statistics, logo promotion, financial management, allocation of finances for various projects.

19 Support of NGOs and institutional support Czech Republic - Ministry of agriculture support: a/ the technical committee for the development of detailed rules for organic law b/ the Organic Action team an committee for development and implementation of Czech Action Plan for organic farming c/ support for Czech organic technological platform umbrella of all organic stakeholders focus research d/ support for NGO activities (PRO-BIO, PRO-BIO League association of consumers, and Bioinstitut)

20 Thank you for your attention! more information's: