Integration of the Macedonian A gricultural market into the EU mar k et

1. Integration of the Macedonian Agricultural market into the EU market Aleksandar Nikolovski Berlin 04.05.2006

2. Introduction • Gross value added (GVA) of agriculture represented almost 12 % of total GDP in 2003 • Primary production within the agricultural sector (including hunting and forestry sector) remains a major employer, accounting for an estimated 14% of the total working population • approximately 100,000 people working full time in agriculture, plus some 20,000 part-time farmers and significant seasonal employment (particularly in the fruit and vegetable sector) • share of agriculture in GDP is 11% • 43 % of the population live in rural areas • Important structural reforms have been realized

3. Export,import and trade balance with EU 2002 - 2005

4. Governmentdocuments as a basis for creation and development of the country’s economy • Stabilization and Association Agreement (SAA) • other bilateral and multilateral free trade agreements including the country’s full membership to WTO in April 2003 • The European Partnership is based on the Opinion • On the base of the Decision, the Government prepared Action Plan for European Partnership • The National Programme for Adoption of acquis communitaire (NPAA)

5. Current Activities of the Ministry of Agriculture, Forestry and Water Economy (MAFWE) • Law on Agriculture and Rural Development • National Strategy for Agricultural and Rural Development, accompanied by Action plans for its implementation) • Integrated Administration System (IACS) • Establishment and development of Land Identification Parcel System. • There is a need for establishment and strengthening links between a private and public sectors to guide the development and implementation of specific rules of the Common Market Organisations (CMO’s) for selected key EU traded agricultural commodity sectors, ensuring legal compliance with various marketing, sizing and packaging standards; rules on labelling, analysis, inspections and monitoring

6. Current Activities of the Ministry of Agriculture, Forestry and Water Economy (MAFWE) • Payment Agency as responsible body for execution and administration of direct payment schemes procedure and implementation of rural development measures • National and EU Accreditation of IPARD PA • Provision of 20 new employees for the administrative structure to work with the EU instruments for rural development • Independent Sector analyses • Preparation of the IPARD Plan

7. Meat and dairy sector • Veterinary Directorate is competent authority for Food of animal origin • 8 slaughterhouses approved for export to EU, 1 establishment for milk and dairy product, • New Veterinary Law • Categorization of the establishment will be regulated with Veterinary Public Health Law • Meat sector (slaughterhouses and meat product processing establishment) • Milk and dairy sector (small and medium establishment)

8. Veterinary – sanitary approval

9. Challenges for the Macedonian Agricultural Sector • Structural reforms of the agricultural sector in the Republic of Macedonia • The average Macedonian farm is 2,1 ha (therefore, compared to the EU average is relatively small and it is qualified as small and family owned farm) 2. Introduction of standards in the Agri Sector • HACCP (Implementation of the HACCP standards, training for inspectors for HACCP system inspection and audit) 3. Information • Campaign aimed at food-industry producers, industrial farmers and small farmers • Information on export standards and terms of the EU common market (free informational campaign on the EU terms, conditions and standards on imports – food, agricultural products, etc).

10. THAN YOU FOR YOUR ATTENTION! Aleksandar.Nikolovski@sep.gov.mk www.sep.gov.mk