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• Economic policy strategy of UNITAB

  83-90

  Anita Kerékgyártóné Mislovics

  Views:

  71

  Under the leadership of the International Association of Tobacco Producers – UNITAB – there is a struggle going on for stabilizing the situation of European tobacco growers. UNITAB unites the tobacco associations and tobacco growers of all EU countries.
  Tobacco production ensures economic stability for more than 100 thousand small- and medium-sized farms in the rural areas of 10 EU countries. In addition, its social importance in the survival of rural communities is emphasized by the 400 thousand direct or related seasonal jobs.
  Within the framework of the CAP reform, the European Union is gradually changing the regulations of production. This is based on the decoupling of subsidies, which will be implemented in two phases. Between 2006 and 2009. the decoupling will be 40% and then after 2010, 50% (the other 50% will be used for restructuring within the second pillar). The question is raised, how will the second 50% be restructured to the second pillar. Between regions and how it can be ensured that this support would go to tobacco production.
  With its participation in the principles of the European Tobacco Charta, UNITAB targets for production under economically-balanced conditions, the production of products meeting the customer requirements, consideration of the working conditions (especially for seasonal workers) and adherence to the health regulations related to the consumption of the end product already in the production and environmental protection. They aim to ensure the survival of the sector via tobacco growing with sustainable development and high quality. To maintain the continuity, there is a need for the support of regional, national and EU authorities. Future of the sector is dependent upon adaptation of tobacco growers and upon meeting the social expectations.
  According to UNITAB, efforts should be made to modify the decisions so that the majority of the funding could be used by the grower. The tobacco industry has been able to effectively fight for its survival.

• Present situation and future prospects for Hungarian fruit and vegetable sector

  31-38

  Patrícia Berecz

  Views:

  72

  Changes in people’s lifestyles and the emergence of nutritional science have created favorable opportunities for a boom in fruit and vegetable consumption, which have been fully exploited by the adaptive fruit producer and exporter countries. Unfortunately, Hungary is not one of these countries. Affected by a number of uncertainty factors, the Hungarian fruit and vegetable sector has fallen behind international trends, seeking opportunities for survival (Erdész, 2007).
  The impacts of the country’s accession to the EU have been more adverse than expected. While no administrative measures are used to control production and the increasing competition and import have put Hungarian producers to a loosing position. The cooperation producers, the well-organized work of professionals and the coordinated activity of producers marketing organizations may resolved some of the problems affecting the sector.
  The fruit and vegetable sector can also anticipate significant changes during the new seven-years budget period of the CAP reform.
  With the new drat reform of the sector, the European Commission intends to simplify the common organization of the fruit and vegetable market, improve competitiveness, increase market orientation, promote fruit and vegetable consumption and to continue the environmental efforts.
  Hungary has had great expectations concerning the reform of market regulation, but the Commission proposal didn’t bear out the expectations, because the new proposal includes insignificant changes in important issues and fails to provide sufficient additional resources for the catching up of he new member states.

• Prospects of tobacco sector due to changing of union subsidy system

  45-51

  Beáta Bittner

  Views:

  81

  Some 80% of the revenues from tobacco production originate from subsidies, therefore the existence of the tobacco industry basically depends on the system of subsidies. According to the current position, in the transitional period of introduction of the CAP reform (from 2006 to 2009) at least 40% of tobacco premiums shall be decoupled from the production, while the tobacco producing member states may decide to continue to pay the remaining 60% (or a less rate, depending on the rate of decoupling) in a coupled form. Tobacco premiums shall be fully decoupled as from the 2010 crop, however farmers will be eligible only for 50% of the subsidies, and the rest 50% shall be used for subsidising rural developments in tobacco producing regions (Radóczné, 2007).
  This change affects the section very seriously. In EU-15 member states this system was introduced in 2006, which resulted in giving up tobacco growing by high percentage of the farmers (70-80% reduction of tobacco production in Greece and Belgium, and 45% reduction in Portugal). In Hungary – due to the small scale of the tobacco section – this rate reduction in production would jeopardise the existence of the section, therefore we are interested in maintaining the existing system of coupled subsidies to as a large extent and for as long time as possible.
  This study shows the possibility of tobacco sector before and after introducing the changes in the system of subsidies, and formulates the most serious problems and roles of the sector.