3rd meeting of the local products working group (2nd of October, 2017)

Reminder about the working group meeting

Szabolcs Hancsók welcomed the participants at the beginning of the meeting on behalf of the Ministry of Agriculture, which assured space for the meeting, and he apologised that he had to leave the meeting. Then, Gyula Ocskay presented the prepared study, as well as the results of the questionnaire.

 

Comments on the results of the study

GENERAL NOTIONS

Each Member State has the power to determine the content of the “local and marginal” production. Food hygiene rules are equally binding for everyone, there is no difference here, but the conditions of local producer are fully based on local traditions. This will result that the process of harmonisation will be very hard with the neighbouring countries, because separate agreements will be needed with each government.

The same conditions need to be provided for the Hungarian small-scale producers in the areas beyond the border. However, production costs are not the same on both sides of the border. How can it be ensured that the Hungarian small-scale producers are not in disadvantaged position?

It is important that the analysis should not generate any impressions that we do not comply the EU rules.

Modification of the regulation on small-scale producers is not among the plans. Authors of the study propose the amendments of the local market regulation.

CONCRETE NOTIONS

Significance of the modifications: there are no problems with small-scale producers in the case of the registered enterprises. Does the cross-border trade of local products have such economic importance which is worth to undertake a complicate amendment in legislation?

Difficulties of controlling: it is impossible to compare the small quantity across the border with the quantity that is sold in Hungary, because the databases are not linked, and controls should be done on both sides. Thus, there is a risk of dumping.

FELIR-identification: selling activity can be done only by FELIR-identification. Food controlling are carried out on this basis of this, but fighting against the black economy is also an important aspect of it. Subsequently, modification of the relevant rules would not be beneficial for this reason.

Obligation of notification: food that is imported to Hungary has to be reported on the basis of its first storage place. In this case the first storage place is the market. The market organizer is responsible for reporting, the NÉBIH will penalize him, too.

Supplier’s identity: the small-scale producer cannot operate a web-shop (mail order trade), it is prohibited by law. Transport is a task that has to be made by the buyer. The small-scale producer may advertise himself in order to attract the consumers. This seems to be simpler, since there is no need to make amendments in the law: the buyer transports the good across the border – at his own risk – instead of the producer.

Question of direct supply: only the cooperation itself may be the seller and it cannot sell the goods further, because the Regulation no. 852 applies only to direct sales.

Definition difficulties: in the case of compound foods, there are also differences in the definition of ingredients between each country.

 SOLUTION PROPOSALS

  • Regulation no. 2/2010 could be amended with facilitation: the option to sell only low quantity; the seller from the areas beyond the border has to register himself on-line; or he may have Hungarian card of small-scale producers. The chip card system which is under development by the Hungarian Chamber of Agriculture could be an appropriate solution and it could be controlled even by a telephone.
  • The Hungarian Chamber of Agriculture connects markets and farmers in a digital system. They register the producers, productions (possibly the volume, too). This system could be extended to the producers beyond the border.
  • Regulation on local producer market could be amended in a way that the “small-scale” producer, under the rules that are applied there, could sell on the Hungarian side.
  • The Union regulates the electronic trade which will overwrite everything and it is likely to solve also the problems that were raised by the study.

At the request of the participants, CESCI undertook that the study will be available for everybody in ‘word’ format. Deadline for submitting of the comments was 10th of November.

Comments on the questionnaire

Contradictory results have emerged: responses of the producers of two questions that concerned the exclusion of competition did not produce the same result. Did they understand the questions?

The number of responses is very low (probably due to the summer announcement), so there is no possibility to draw a real picture about the opinions of the consumers and producers. The Hungarian Chamber of Agriculture offered that they will restart the questionnaire through their county offices. They asked us to allow the option that the questionnaires can be filled in paper-form, because this is the simplest solution for many small-scale producers. The participants agreed that time frame for the questionnaire survey is extended until 10th of November. For this, CESCI reopens its on-line interface and the link is shared within its network. CESCI undertook the task to process the questionnaires that were filled by hand.

Participants of the group will be informed about the results at the meeting in November.

The following participants were present:

  • Ferenc Deák, Ministry of Agriculture
  • Dr. Szabolcs Hancsók, Ministry of Agriculture
  • János Horváth, Kislépték
  • Annamária Jakab, Ministry of Agriculture
  • Dr. Norbert Jankai, CESCI
  • Katalin Kujáni, Discovery Research Agency
  • Gergely Lantos, Ministry of Agriculture
  • Dr. Ágnes Major, lawyer
  • Gyula Ocskay, CESCI
  • Andrea Szabadkai, Kislépték
  • Mihály Szalai, Hungarian Chamber of Agriculture
  • Erika Székely, Hungarian Chamber of Agriculture
  • Edina Szomi, Hungarian Chamber of Agriculture
  • Orsolya Tószegi, Prime Minister’s Office

Documents relating to the meeting of the working group can be downloaded:


Presentation – Questionnaire


Presentation – Study