decree on conditions, method and the pace of ... · pdf filethe agro-budget shall enter into...

Pursuant to the Article 6 of the Law on Agriculture and Rural Development (Official Gazette of

Montenegro No. 56/09), Article 37 of the Law on Marine Fishery and Mariculture (Official

Gazette of Montenegro, No. 56/09) and Article 15 of the Law on Budget of Montenegro for 2010

– functional classification 41101; 41102 and 41106 (Official Gazette of Montenegro No. 87/09), at

the sitting held on February 11th

, 2010, the Government of Montenegro adopted the

DECREE on conditions, method and the pace of

implementation of measures of agricultural policy

for 2010 - Agrobudget

Article 1

This decree governs the conditions, method and pace of implementation of measures of agricultural policy for market-price policy, rural development policy, activities of public interest, social transfers to family agricultural holdings and measures in the fishery sector (hereinafter referred to as: the Agro-budget).

Article 2 The funds provided for by the Agro-budget shall be allocated to the Ministry of Agriculture, Forestry and Water Management (hereinafter referred to as: the Ministry) in the Budget of Montenegro for 2010 (hereinafter referred to as: the Budget) in total amount of 18,671,145.00 €, with the following breakdown: 1. Agriculture development, rural development and fisheries……… …16,951,145.00€ 2. Implementation of animal health protection measures…….............. 1,500,000.00€ 3. Implementation of phyto-sanitary measures....................................... 220,000.00€.

1. The funds for agriculture development, rural development and fisheries in amount of 16,951,145.00€, shall be allocated to the Ministry in the Budget for 2010 – functional classification 41101 – Programme 2531 – agriculture and fishery, at following classification items:

1) classification item 4139 – contracted services, in the total amount of 3,821,145.00€, are provided from: a) the funds of general revenues of the Budget in amount of 836,000.00€; b) the funds from donations in the amount of 1,220,000.00€ and c) the funds from credits in the amount of 1,765,14500€.

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a) the funds from general revenues will be allocated for financing of the programmes under the following codes: 2.2.1 in the amount of 12,800€; 2.2.2 in the amount of 60,000€; 3.3 in the amount of 309,007€; 3.4; 3.5 in the amount of 300,008€; 3.6. and C) reserves in amount of 4.185€. b) the funds from donations will be allocated for financing of the programmes under the codes: 2.2.2. in the amount of 200,000€; and 2.2.3 in the amount of 100,000€; 3.3 in the amount of 72,982€; 3.5 in the amount of 72,981€; 5 in the amount of 54,037€; and B-3 in the amount of 720,000€. c) the funds from the credits will be allocated for financing of the programmes under the codes: 2.1.1 in the amount of 100,000€; 2.1.2 in the amount of 100,000€; 3.3 in the amount of 249,787€; 3.5 in the amount of 249,786 €; 3.8 in the amount of 406.967€; 5 in the amount of 527,241€ and B-2 in the amount of 131,364. 2) classification item 4171 – subsidies for production and supply of services, in the amount of 8.350.000,00€, shall be allocated for financing of the programmes under the codes: 1.1.1; 1.1.2; 1.1.3; 1.1.4; 1.1.5; 1.1.6; 1.2; 1.3.1; 1.3.2; 2.1.1. in the amount of 350,000€; 2.1.3; 2.1.6; 2.1.7; 2.1.9; 2.1.10; 2.1.11; 2.2.2. in the amount of 90,000€; 3.1; 3.2; 5 in the amount of 295,000€ and B-1; B-2 in the amount of 92,000€ and C) reserves in amount of 14.719€. 3) classification item 4313 – transfers to individuals – old age allowances, in the amount of 2,920,000.00€, shall be allocated for financing of the programme under the code: 4.1. 4) classification item 4412 – expenditures for local infrastructure and rural development, in the amount of 1,860,000.00€ shall be allocated for financing of the programmes under the codes: 2.1.2 in the amount of 350,000€; 2.1.4; 2.1.5, 2.1.8; 2.2.1 in the amount of 45,000€; 2.2.3 in the amount of 345,000€; 2.3.1; 2.3.2;. 2. The funds for implementation of animal health protection measures (code 3.8) The funds for animal health protection in the amount of 1,500,000.00 €, in the Budget for 2010 are allocated to the Veterinary Directorate – functional classification 41102 – Programme 2011 – Prevention, monitoring and control of veterinary work, at the classification item 4171 – subsidies. In order to make these funds operational, the Ministry adopts the Operational Programme of animal health protection in 2010, at the proposal of the Veterinary Directorate. 3. The funds for implementation of phyto-sanitary measures (code 3.7) The funds for phyto-sanitary measures, in the amount of 220,000.00€, in the Budget for 2010, are allocated to the Phyto-sanitary Directorate – functional classification 41106 – Programme 2621 – Phyto-sanitary Directorate, at the classification item 4139 – contracted services. In oreder to make these funds operational, the Ministry adopts the Programe of use of funds for phyto-sanitary measures for 2010, at the proposal of the Phyto-santiary Directorate. Article 3 The Ministry is responsible for execution of the Agrobudget – the services designated for implementation of specific programmes and persons responsible listed by specific programmes.

The Veterinary Directorate is responsible for implementation of the Operational Programme of animal health protection, and the Phyto-sanitary Directorate is responsible for implementation of the programme of phyto-sanitary measures..

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The obligations towards the program beneficiaries shall be executed according to the time schedule set by the budgetary expenditure plan, approved by the Ministry of Finance.

The expenditures presented per individual programmes are projected values. The Ministry, the Veterinary Directorate and the Phyto-sanitary Directorate may, during the execution of the Agro-budget, change the purpose of utilization of the funds and re-allocate them from one programme to another, up to the amount of total funds by specific classification items, with approval from the Ministry of Finance.

Article 4 The conditions, method and pace of implementation of the measures of agricultural policy for 2010 are given in the Annex – Agricultural policy measures, which is printed along with this Decree that it is integral part of. Article 5 The Agro-budget shall enter into force on the eighth day from the day of its publishing in the ―Official Gazette of Montenegro‖. Ref. No.: __________________ Podgorica, _____________ 2010

Government of Montenegro Prime Minister

Milo Đukanović, (m.p.)

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A N N E X

AGRICULTURAL POLICY MEASURES

AGRO-BUDGET 2010 OVERVIEW BY MEASURES AND PROGRAMMES

A) AGRICULTURE

Code Econ. class.

Programme Title Amount, € %

1. MARKET-PRICE POLICY MEASURES

1.1 DIRECT PAYMENTS

1.1.1 4171 Direct support to livestock production 1,954,841.00 10.47

1.1.2 4171 Support to dairy production for market 1,155,000.00 6.19

1.1.3 4171 Support to strengthening of milk collection network 627,500.00 3.36

1.1.4 4171 Support to collecting and slaughter of cattle 60,000.00 0.32

1.1.5 4171 Direct support to crop production 395,000.00 2.12

1.1.6 4171 Support to tobacco production 120,000.00 0.64

TOTAL DIRECT PAYMENTS (1.1) 4,312,341.00 23.10

1.2 4171 BEE-KEEPING DEVELOPMENT PROGRAMME 230,500.00 1.23

1.3 MARKET STABILISATION MEASURES

1.3.1 4171 Market intervention programme 330,000.00 1.77

1.3.2 4171 Risk management in agriculture 210,000.00 1.12

MARKET STABILISATION MEASURES TOTAL (1.3) 540,000.00 2.89

MARKET-PRICE POLICY MEASURES TOTAL (1.1+1.2+1.3) 5,082,841.00 27.22

2 RURAL DEVELOPMENT MEASURES

2.1 Axis 1: Measures for improving competitiveness of agriculture

2.1.1 4171 4139

Support to investments in agricultural equipment and mechanisation 450,000.00

2.41

2.1.2 4171 4139

Support to investments in livestock farms 450,000.00

2.41

2.1.3 4171 Support to setting-up of perennial crop plantations 610,000.00

3.27

2.1.4 4412 4139

Support to construction and equipping of greenhouses 180,000.00

0.96

2.1.5 4412 4139

Support to investments related to land policy 200,000.00

1.07

2.1.6 4171 4139

Support to investments in processing of animal products 500,000.00

2.68

2.1.7 4171 4139

Support to investments in storage, packing and processing of plant products 330,000.00

1.77

2.1.8 4412 4139

Support to investments in processing on family holdings 60,000.00

0.32

2.1.9 4171 Support to producers' organisations 130,000.00

0.70

2.1.10 4171 Improving the quality of products 215,000.00

1.15

2.1.11 4171 Promotion of agricultural products 85,000.00

0.46

TOTAL AXIS 1 3,210,000.00 17.19

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2.2 Axis 2: Measures for sustainable management of natural resources

2.2.1 4412/4139 Preservation of genetic resources in agriculture 57,800.00 0.31

2.2.2 4139/4171 Organic farming 350,000.00 1.87

2.2.3 4412/4139 Sustainable use of mountain pastures 445,000.00 2.38

TOTAL AXIS 2 852,800.00 4.57

2.3 Axis 3: Measures for improving the quality of life and diversification of economic

activities in rural areas

2.3.1 4412 4171

Diversification of economic activities in rural areas 60,000.00 0.32

2.3.2 4412 Revitalisation and development of rural areas and construction of rural infrastructure

620,000.00 3.32

TOTAL AXIS 3 680,000.00 3.64

RURAL DEVELOPMENT MEASURES TOTAL (2.1+2.2+2.3) 4,742,800.00 25.40

3 SUPPORT TO GENERAL SERVICES IN AGRICULTURE

3.1 4171 Education, research and analytical work 130,000.00 0.70

3.2 4171 Livestock breeding improvement programme 245,440.00 1.31

3.3 4139 Programme of professional and extension services for livestock production

631,776.00 3.38

3.4 4139 Programme of professional services for plant production 60,000.00 0.32

3.5 4139 Programme of extension services in plant production 622,775.00 3.34

3.6 4139 Programme of quality control measures 90,000.00 0.48

3.7 4139 Programme of phyto-sanitary measures 220,000.00 1.18

3.8 4171/4139

Operational Programme for Animal Health Protection 1,906,967.00 10.21

TOTAL SUPPORT TO SERVICES IN AGRICULTURE 3,906,958.00 20.93

4 SOCIAL TRANSFERS TO RURAL POPULATION

4.1 4313 Old age allowance programme 2,920,000.00 15.64

5 4171 4412

TECHNICAL AND ADMINISTRATIVE SUPPORT TO PROGRAMME IMPLEMENTATION

876,278.00 4.69

6 4139 TOTAL FOR AGRICULTURE (1+2+3+4+5) 17,528,877.00 93.88

B) FISHERY

B.1 4171 Support to development of fishery sector 180,000.00 0.96

B.2 4171/4139 Support to management and preservation of fish stock 223,364.00 1.20

B.3 4139 Sustainable sea fishery management, IPA 2009 720,000.00 3.86

FISHERY TOTAL 1,123,364.00 6.02

C 4171 Reserves for unplanned budgetary expenditures 18,904.00 0.10

TOTAL – AGRO-BUDGET (A+B+C) 18,671,145.00 100.00

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RATIONALE The basis for adopting the Decree on conditions, method and pace of implementation of measures of agraricultural policy for 2010 is in the Article 6 of the Law on agriculture and rural development (―Official Gazette of Montenegro‖, No. 56/09), Article 37 of the Law on marine fishery and mariculture (―Official Gazette of Montenegro‖ No. 56/09), laying down that the conditions, method and pace of implementation of measures of agricultural policy, set by the Strategy and the National Programme, shall be laid down in more detail by a regulation of the Government. The funds allocated by the Budget of Montenegro for 2010 for these purposes are defined in the Article 15 of the Law on Budget of Montenegro for 2010 („Official Gazette of Montenegro― No. 87/09) under the functional classification of the Budget 41101 (Ministry of Agriculture, Forestry and Water Management); 41102 (Veterinary Directorate); 41106 (Phyto-sanitary Directorate). This decree contains:

the funds planned by specific agricultural policy measures;

the eligibility conditions and criteria for the incentives laid down by the law;

the method of control in implementation of agricultural policy measures;

the method of monitoring and evaluation of the effects of agricultural policy measures;

the method and procedure of allocation of incentives;

the measures for removal of irregularities noted in use of incentives.

The goal of this decree is, above all, to support the development of agriculture and rural areas, and it particularly underlines the harmonization of the agricultural policy and its implementation with the requirements of the European Union. Preparations for implementation of the pre-accession IPARD support will have a special place in it. The choice of measures and funds for their implementation are made based on:

- Concept of agricultural policy and goals defined by the Strategy and the National Programme,

- Analyses of implementation of the policy of incentives so far, - the funds designated and the Budget of Montenegro, including the funds from donations

and credits from the World Bank, - Assessment of the pace of adapting the agricultural policy measures to the principles of

Common Agricultural Policy (CAP), as well as projections of potential preaccession support and the EU support following the accession.

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1. MARKET-PRICE POLICY MEASURES 1.1. DIRECT PAYMENTS

1.1.1 DIRECT SUPPORT TO LIVESTOCK PRODUCTION

Reasons for implementati

on

Due to the specific natural conditions reflected in the large areas of low-productive natural meadows and pastures, livestock farming in Montenegro is extensive. In cattle breeding, non-specialised, i.e. dual-purpose production breeds (i.e., milk and meat) prevail, along with prominently seasonal calving period. Fattening of young cattle for beef production is not very well developed and is of a small volume. In sheep and goats, traditionally reared for milk and meat, feeding is almost entirely based on use of natural meadows and pastures of lower quality. Extensive ruminant rearing system and low productivity reduce the producers‘ competitive capacity and for that reason, the livestock farming potential remains unutilised, which has negative consequences on the development of Montenegro‘s agriculture and rural areas in general. The utilisation of existing natural resources -meadows and pastures-is only possible through ruminant production, which is also tightly linked with staying of the active workforce in predominantly rural areas of Montenegro. Improving producers‘ competitiveness through direct payments can accelerate the development of the livestock farming sector, in line with EU standards and requirements, and enable the sector‘s gradual integration with the EU common market.

Objectives

Strengthening the livestock production competitiveness,

Providing conditions for the balanced development of cattle, sheep and goat breeding

Better utilisation of available resources, especially natural meadows,

Strengthening of vertical integration in meat production and improvement of food safety systems by encouraging cattle slaughter in slaughterhouses that fulfil the statutory veterinary and sanitary conditions

Contribute to rural development through higher income of agricultural holdings, and thus increase the quality of life in rural areas

Measure description

and eligibility criteria

Direct assistance to livestock farming consists of: premiums per head for cows and breeding heifers, premiums per head for sheep and goats slaughter premiums per head for beef cattle and other categories of adult cattle

a) Premiums for cows and breeding heifers - all farms rearing more than 3 head of such cattle are eligible for support, where premiums apply only to animals above this minimum number, up to a maximum of 50 head. This criterion is fulfilled if a farm keeps this number of head for a minimum of six months. The basic premium per head for breeding cows and heifers is 70 €. b) Premiums for sheep and goats – all farms rearing more than 20 sheep and/or more than 10 goats per flock are eligible. The payment applies only for a head number above the minimum number, to a maximum of 300 head per farm for the premium. This criterion is fulfilled if a farm keeps this number of head for a minimum of six months. The basic per-head premium for breeding sheep and goats is 9 €. c) Slaughterhouse premiums per head for fattened beef cattle and other categories of adult cattle – only the farms selling fattened beef cattle and other categories of adult cattle to approved slaughterhouse are available for the slaughterhouse premiums up to a maximum , of 90 head per year. The premium can be received only for cattle reared in Montenegro, while imported beef cattle should be fattened for at least six months on the farm. The basic slaughter premium for fattened beef cattle, bulls and oxen is 120 € per head, and for other categories of adult cattle 40 € per head. No premium is available for calf slaughter. The condition for slaughterhouse premium for fattened beef cattle, bulls and oxen is to have minimum weight of 400 kg per head, with the exception of beef cattle fattened in the pastures, which may have minimum weight of 350 kg at slaughter. The precondition for premiums for cows and heifers (a) and slaughterhouse premiums (c) is that the animals are identified with eartags and registered in the database, that the owner has the animal passports and the Farm Book properly filled in in accordance with the legislation, Farmers who fail to comply with these conditions the total support for cattle by farm shall be decreased as follows: for unidentified head of cattle up to 15%, for a missing passport up to 10%, for a head that is not in the farm register up to 5%, for unregistered movement to or from the farm 10% per head, and the total premium decrease, on all the bases, can be calculated up to 30%.

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In order to exercise the right to a slaughter premium (c) the farmer shall submit the following documents to the Livestock Selection Service:

a purchase notice issued by the approved slaughterhouse (with the name and address of the owner, date of purchase, weight of the head, ID number of the head and its category).

For imported animals, it is necessary to submit the decision on import issued by the Veterinary Administration, obtained at the moment of entering Montenegro (import decision by a border veterinary inspector), as well as the number of imported animals and their identification number; beginning of organized beef cattle fattening is to be reported to the Livestock Selection Service, in order to enable it an insight in the number of beef cattle in fattening.

In case the total amount from applications received for a specific premium type exceeds the amount planned, the payments per head will be proportionally reduced for that particular support type. Note: The maximum payments per specific component do not apply to registered enterprises.

Beneficiaries Farms fulfilling the criteria stated above.

Payment method

Cash payments to farms

Implementation

Bio-technical Faculty – Livestock Selection Service, person responsible Milan Marković

Implementation procedure

February: Selection Service disseminates application forms and announces the measure through the media March 1 – April 15: Farmers apply and fill in the forms for premiums (a and b) May 1 – October 30: Service controls the situation in the field: min. 30% of applications for cows and heifers (premium under a) ), and 50% for sheep and goats (premium b). The documentation for slaughter premiums can be submitted to the Service by the end of November. The service checks the applications through the electronic database. 01 Nov. – 15 Dec: Writing reports, making premium lists and submitting them to the Ministry Nov.01-30: Report preparation, drawing up of premium list and forwarding them to the Ministry. February – June: Payment of premiums for the previous year Note: Premiums gained according to the criteria stated and procedure described above shall be paid in 2011. The Financial Plan that follows applies to premiums to be paid this year, on the basis of rights acquired by the line 1.1.1 of the Agrobudget for 2009.

Surveillance and control

Ministry, person responsible Branko Bulatović Agricultural Inspectorate

Financial

plan

Components Amount, €

1. Premiums for cattle breeding - 14285 head x 65 € 928,525

2. Premiums for sheep breeding - 97933 head x 8 € 783,464

3. Premiums for goat breeding - 15959 head x 8 € 127,672

4. Premiums for fattened young beef cattle, bulls and oxen - 1059 head x 100 € 105,900

5. Slaughter premiums for other categories of beef cattle – 232 head x 40 € 9,280

Total 1,954,841

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1.1.2 SUPPORT TO DAIRY PRODUCTION FOR MARKET


on

Out of the total milk production in Montenegro, estimated to approximately 200 million litres, less than 20% is processed in registered dairy and cheese plants; most of it remains at farms where it is processed into dairy products (cheese and kajmak) or used for their own needs. These products are placed on the organised market in very limited quantities. On the other side, the demand for commercial milk products is increasing, particularly in tourism. Low milk production level per cow and per farm on the one side, and an increasing demand with regard to milk quality on the other, reduce the interest of milk producers in selling to dairy plants. Increasing the competitiveness of the milk sector through direct support to producers can considerably accelerate the development of commercial milk production and its adjustment to EU standards.

Objectives

increase the competitiveness of commercial milk production

encourage the development of commercial milk production for supply to dairy plants

increase the share of milk bought by the dairies in the total milk production

improve the quality of milk

enlarge dairy farms

Measure description


Supplying dairy plants with milk is encouraged and this refers to the producers that regularly supply registered dairies with milk and take part in the implementation of the national scheme for milk quality improvement. The support takes the form of a premium per litre of milk delivered, 5.5 cents per litre. The eligibility condition for the premium is that the quantity delivered per farm is minimum 200 litres per month.

Beneficiaries All farmers who regularly deliver over 200 litres of milk per month to a registered dairy plant.

Payment method

Through dairies or banks, cash payments to farmers, in line with the dairies' lists.

Implementation

Registered dairies and cheese plants


Lists of producers, including monthly data on quantities of milk supplied are the basis for calculation and payment of the premium. Registered dairies present the lists with the data no later than by the 10th day of the month for the milk collected in the previous month. Payments are made once a month to dairies that have to forward the premiums to their milk suppliers by the day they receive the application for the following month, at the latest. In case a dairy fails to meet its obligations to milk producers regularly, the premium shall be paid to milk producers directly.


Ministry, person responsible Lidija Rmuš Agricultural Inspectorate

Financial plan


Premiums 5.5 Euro cents per litre – 21.000.000 l x 0.055 € 1.155.000

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1.1.3 SUPPORT TO STRENGTHENING OF MILK COLLECTION NETWORK


on

One of the reasons for which such a small share of total milk production is supplied to dairy plants on regular basis is the fact that the milk-collecting network has not been sufficiently developed. There are many municipalities where milk collecting has never been organised. The costs of organising and maintaining a milk collection network are high, due to landscape configuration and small, fragmented farms. Some dairies practise collecting of raw milk from the region for further processing, since their collection costs are thus lower. However, in this way, many farmers lose access to markets. Maintaining and developing the milk collection network is one of the key factors to developing further commercial milk production in Montenegro.

Objectives

maintain, strengthen and develop milk-collecting infrastructure

increase competitiveness of milk production and processing

increase milk collecting and processing of milk in registered dairy plants

widen the range of dairy products produced in the country

Measure description


The co-financing of milk-collecting costs, including the operations of collecting centres, helps dairy plants maintain and widen the collecting networks. This measure relates to all registered dairies and cheese plants that regularly buy milk from Montenegrin farmers. The eligibility condition for co-financing the costs of milk collecting is the quantity of milk collected, proved by the enclosed milk producers‘ lists. The costs are compensated per every litre of milk collected in the amount of 0.025€ per litre. For the organization of intervention milk collection in remote, depending on the location of the milk processor (distance of up to 50km), additional support will be provided in accordance with the collection costs incurred, but not more than 0.03€ per liter of collected milk. An additional premium of 0.02€ per litre applies to increase in quantities of milk collected when compared to the same month of the previous year.

Beneficiaries All registered dairy and cheese plants collecting milk from Montenegrin farmers and consistently observe the Decree on the criteria and method for setting the collection price of raw milk.

Payment method

Upon receipt of an invoice, together with a list of farmers from which milk was collected.

Implementation

Ministry, in co-operation with registered dairies, cheese plants and collection centres.


The basis for calculation and payment of premiums are actual monthly quantities of milk collected from Montenegrin producers. Registered dairies and cheese plants present the data no later than the 10th day of the current month for the milk collected the previous month. Payments are made monthly, to dairies and cheese plants that have to pay their liabilities to farmers from the Measure 1.1.2, by the day they receive the application for the following month, at the latest.


Ministry, person responsible Lidija Rmuš Agricultural Inspectorate

Financial plan


Premiums 2.5 Euro cents per litre collected – 21.050.000 lit x 0.025€ 537,000

Premiums for collection in zones that are remote from the location of the processor

50,000

Additional premium for increased collection volume (2.0 mil. lit x 0.02€)

40,000

Total 627,500

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1.1.4 SUPPORT TO COLLECTING AND SLAUGHTER OF CATTLE


on

According to the data available, the number of all categories of cattle slaughtered in registered slaughterhouses is small. This is caused partly by a tradition of keeping and slaughtering cattle directly on farms. The other reason is the considerable cost that the slaughter industry incurs, including the costs of transport from very remote areas, administrative costs, veterinary control, safe disposal of offal and waste, etc. This support is introduced in order to partly cover the costs and thus encourage slaughter of cattle slaughter in slaughterhouses.

Objectives

establish quality control and traceability systems in meat production

increase competitiveness of commercial meat production

increase slaughter of adult cattle in registered slaughterhouses

strengthen infrastructure for enlargement of cattle collecting network

strengthen vertical integration in meat production.

Measure description


Support for food business operators engaged in slaughter activities is a compensation of a part of collecting costs, as well as fixed costs related to the obligation of traceability and other administrative and technical requirements in this business activity. The measure is implemented in the form of payments per head of cattle, with the exception of calves, that weighs not less than 240 kg. The amount of support per slaughtered head is 20 €.

Beneficiaries All approved slaughterhouses that collect and slaughter cattle supplied from Montenegrin farmers.

Payment method

Upon receipt of an application for support for collection and slaughter of cattle from the food business operator engaged in slaughter activities, together with the list of farmers the slaughter cattle was purchased from. (the application, that shall contain the first and the last name of the farmer, the place, identification number of the cattle, shall be accompanied by copies of purchase notice with information on the owner, identification number of hte animal, category and weight)

Implementation

Veterinary Directorate in co-operation with the approved slaughterhouses, person responsible Biljana Blečić


The basis for calculating and payment of support is a list of cattle bought and slaughtered, stamped by the person responsible. Food business operators engaged in slaughter activity are eligible for a premium only for:

- properly identified and registered cattle, reared in Montenegro,

- imported cattle that spent at least 6 months on the farm (fattening, etc.),

- cattle slaughtered in an approved slaughterhouse and the slaughter registered in the electronic database of the Veterinary Directorate.

Food business operators engaged in slaughter activities present the lists to the Ministry on quarterly basis. Payments are made regularly, on quarterly basis.


Ministry, person responsible Sunčica Boljević Veterinary Inspectorate

Financial plan


Premiums for 3000 adult cattle, with the exception of calves (1250 young beef cattle and 1750 adult cattle) x 20€

60,000

Total 60,000

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1.1.5 DIRECT SUPPORT TO CROP PRODUCTION


on

Due to specific natural conditions, Montenegro has very limited arable land available, which is underutilised. Average crop yields are low. Increase in productivity is limited, due to fragmented farms and small areas under arable land in farms. All of this reduces farmers‘ competitive capacity and their interest in this production. Crop production development is one of the conditions for rational utilisation of this already very limited natural resource, as well as for providing production of crops traditionally grown in this area. Direct production support can strengthen crop production competitiveness, improve farmers‘ economic conditions and have a positive developmental impact on production.

Objectives

increase competitiveness of crop production,

achieve optimal utilisation of available arable land resources, through regular cultivation, of land suitable for crops and forage production, while respecting good agricultural practice principles,

better cereals supply from domestic production,

improve forage production on available arable land,

secure quality seed from domestic production.

Measure description


The support is available for:

arable crop production,

arable crop seed production. The support is implemented in the form of direct payments per hectare of area sown and/or planted for basic arable crops: cereals, potatoes, forage plants (plants for silage production, annual fodder crops from arable land and fodder crops from perennial grassland sown, grass-legume mixture and lucerne), buckwheat and other crops (apart from tobacco). Direct payments also go towards seed production of the aforementioned crops. Eligible are also producers of perennial fodder crops including the producers who started production in 2008, up to maximum 5 years in the same plots, provided that they regularly apply agro-technical measures. The minimum surface for support to production of individual crops is 0.5 hectares. Different types of crops on one farm cannot be added together for the fulfilment of this minimum. One farm can apply for support for each individual qualifying crop. The areas under specific crops are registered in relevant registers kept by the Extension Service in Plant Production and records for seed production are also kept by the Phyto-sanitary Directorate. The condition for support to commercial production is use of certified seed, which is verified by a report from Extension Service in Plant Production. The condition for support to commercial production is compliance with the criteria and requirements set for seed production in accordance with the laws (expert and health control and certification), which is confirmed by a report from the Phytosanitary Directorate. The basic amount of payment per hectare of crops cultivated for commercial purposes or feed production is 130 €, for buckwheat 180€. The basic payment per hectare of seed production is 600 €. If the total number of applications received for each type of direct support exceeds the annual amount allotted in the budget, the subsidies per hectare unit will be proportionally reduced.

Beneficiaries Arable crop producers fulfilling the criteria set. Arable crop seed producers fulfilling the seed production criteria set.

Payment method

Through banks to producers, upon receipt of a report from the Extension Service in Plant Production and Phyto-sanitary Directorate.

Implementation

Extension Service in Plant Production, person responsible: Vukota Stanišić Phyto-sanitary Directorate, person responsible: Zorka Prljević


Support to commercial production: February: Extension Service in Plant Production distributes application forms and announces the measure through the media March 1 – May 30: Farmers apply and fill in the forms for premiums (spring sowing); Sept 1. – Oct. 30: Farmers apply and fill in the forms for premiums (autumn sowing); June 1 – November 15: Service controls the situation in the field for all areas farmers applied for (100%); July 1 – July 15: Development of a report on spring sowing, drawing up the lists, forwarding to the Ministry.

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November 1 – Nov. 15: Development of a report on autumn sowing, drawing up the lists, forwarding to the Ministry. July – December: Payment of premiums Support to seed production – in compliance with the law. July – December: Payment of premiums



Financial plan


Commercial production 130€ per ha and 180€ per ha for buckwheat 323,000

Seed production 600€ per ha 72,000

Total 395,000

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1.1.6. DIRECT SUPPORT TO TOBACCO PRODUCTION


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Available land resources in direct vicinity of the Skadar Lake provide conditions suitable for tobacco production. Those available land resources are still underutilised. Increasing competitiveness through targeted support to producers enables maintenance of production levels achieved and hence better utilisation of the production potential.

Objectives increase competitiveness of tobacco production

use soil resources less convenient for production of other crops, improve quality of produced tobacco

Measure description


The support is implemented in the form of direct payments per hectare of area sown and/or planted with tobacco. The producers setting up production in 2010 are entitled to direct payments provided that they apply the regular agro-technical measures. The areas planted with tobacco are registered in relevant records kept by the Extension Service in Plant Production. The basic amount of payment per hectare of tobacco grown is 1000 € /ha for II tobacco class, the support for the first class will be increased by 20% and for third class decreased by 20%. If the total number of applications received for each type of direct support exceeds the annual amount allotted in the budget, the payments per hectare unit shall be proportionally decreased.

Beneficiaries Tobacco producers who produce and deliver tobacco to registered processors.

Payment method

To producers through banks upon receipt of a report from the Extension Service in Plant Production and the Phytosanitary Directorate, laying down the area and type of the tobacco gown and upon submitting of a certificate on supply of tobacco produced to registered tobacco processors, or at the account of the Association of Tobacco Producers.

Implementation

The Ministry and the Extension Service in Plant Production, person responsible: Vukota Stanišić, in co-operation with registered tobacco processors and the Association of Tobacco Producers.


For production year 2010/2011: - In February 2010, tobacco producers sign the contract with registered tobacco

processors who present the Extension Service in Plant Production with the lists of producers they signed the contract with as well as the basic elements of the contract (area, tobacco type).

- In June/July 2010 the Extension Service in Plant Production and technical services of registered tobacco processors visit tobacco producers who signed the contract on the area under tobacco in order to determine the actual area under tobacco, which are registered in the relevant records of the Extension Service in Plant Production;

- In December 2010/January 2011, the registered tobacco processors submit the final report on tobacco collecting with mandatory information on the percentages of tobacco collected by classes for each of the producers.

- In January/February 2011, based on the report and comparison of the data from the records of the Extension Service in Plant Production a calculation is made for each of the producers and the lists are submitted to the Ministry of Agriculture

- In February/June 2011 the Ministry of Agriculture effects payments



Financial plan

Components (based on Agrobudget 2009) Amount, €

Support to tobacco production 120,000

Total 120,000

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1. MARKET-PRICE POLICY MEASURES 1.2. BEE-KEEPING DEVELOPMENT PROGRAMME


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Bee-keeping in Montenegro has a long and rich tradition. The richness of honey plants in Montenegro offers very favourable natural conditions for development in this industry. The importance of bee-keeping is not reflected solely in production of honey and other apiary products, but also in the role of bees for pollination, which has a direct effect on increase in yield of different fruit, crops, meadows and other cultures. This sector is improved through the education of bee-keepers, measures aimed at increasing the competitiveness, and preservation of health condition of bee communities. Bearing in mind the current situation as regards bee-keeping development and the need to have the sector more competitive on the wider market and exposed to a very tough competition from the EU and third countries, the programme of support to bee-keeping development needs to be continued.

Objectives

improve competitiveness in production of bee products,

improve genetic potential of bee communities by introducing high-quality bee queens into production,

preserve the quality and improve health safety of bee products,

improve the quality and health safety of bee products,

raise the knowledge and skills of bee-keepers

Measure description


Bee-keeping development is supported in the field of: production of selected bee queens, quality of bee products and health of bee communities, improvement of competitiveness through automation of some phases of the work,

improvement of sanitary conditions in production and storage of bee products support to young and inexperienced bee-keepers professional skills of bee-keepers.

Support to the improvement of selected bee queen production is related to the support to operation of selection centres that strictly follow the prescribed criteria with regard to selection of high-quality bee queens and to support to bee breeding centres in breeding bee queens from selected material. Support to improvement of the quality of bee products and the health of bee communities is directed to the protection of bee communities against the Varroa destructor and use of organic medicinal products and to improvements to health safety of bee products. This support is available to bee keepers who treat their bee communities against Varroa destructor with organic preparations, with the exception of organic acids (formic acid, oxalic acid, etc.) and use of anti-Varroa hive floor inserts. Support to improving competitiveness in bee production relates to co-financing the supply of equipment for honey extraction, storage and packing; equipment for improving the hygiene and preserving the quality of originally collected bee products, especially honey. The maximum share of budgetary funds in equipment supply is up to 40% of the value of the equipment. The support is available to bee-keepers who have more than 20 bee hives. Support to young and inexperienced bee-keepers includes providing 3 formed bee communities (max. amount 500 €) for a bee-keeper not younger than 18 and not older than 30, obliging him to stay in bee-keeping for the next 5 years and to become member of the Association of Bee-keepers organizations Support to professional skills of bee-keepers is directed to different kinds of education and training: organisation of seminars and events for bee keepers, supply of books, magazine issuing and the like.

Beneficiaries Bee-keeping Association of Montenegro, municipal bee-keepers‘ organisations, Bee queen selection centres, bee-queen breeders.

Payment method

Upon receipt of an invoice, accompanied by a report

Implementation

Confederation of Bee-keepers Organisations, person responsible: Radule Miljanić Faculty of Agriculture in Zemun, person responsible: Professor Mića Mladenović


The Confederation of Bee-keepers Organisations, together with the Ministry, prepares, in accordance with the funds for support allocated for the current year, the Action plan of budget execution with the objective of providing efficient and transparent support to all the bee-keepers members of the Confederation. The Confederation of Bee-keepers Organisations submits to the Ministry the lists of bee-keepers including information on bee-queens taken, hive floor inserts, data and evidence on

16


equipment supplied (all bills and evidence of payment have to be issued on the name of the bee keeper concerned), the list of bee-keepers' events and lectures organised as well as reports on magazines issued. Experts hired report to the Ministry on selection measures implemented in Selection Centres. Results are verified on the basis of a detailed annual report submitted to the Ministry.


Ministry, person responsible: Slavica Pavlović Agricultural Inspectorate

Financial plan


A. Production of selected queen-bees

financing of selection and bee breeding centres, technical implementation of the project

co-financing of queen-bee supply, 7000 x 4 €

43,000 15,000

28,000

B. Improving the quality of bee products and health of bee communities

Introduction of anti-Varroa hive floor inserts into a modern bee-keeping system 2500 pcs. x 5 € (min. 5 pcs.)

Participation in implementation of bee community protection against Varroa destructor (30,000 bee communities x 1.5 € )

57,500

12,500

45,000

C. Improvement of competitiveness in bee-keeping sector

Co-financing of costs for supply of equipment for extraction, packaging and storage of honey and for improvement of sanitary conditions (up to 40% of the total value of equipment supplied)

73,000

D. Support to young and inexperienced bee-keepers

Participation in providing 3 formed bee communities (max.amount of support 500 € per bee-keeper)

9,000

E. Improvement of professional skills of bee-keepers

Organisation of bee-keepers events and seminars

Co-financing of printing costs for the magazine ‗‘Pčelarstvo‘‘

Organisation of bee-keeping school

Participation of representatives of the Confederation of Bee-keepers in international bee-keepers' events and seminars

Development and publication of Instructions for Good Bee-keeping Practice

Development of a web site for the Confederation of Bee-keepers

48,000 7,000

20,000 15,000

2,500

2,000 1,000

Total A,B,C,D, E 230,000

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1. MARKET-PRICE POLICY MEASURES 1.3. MARKET STABILISATION MEASURES

1.3.1 MARKET INTERVENTION PROGRAMME


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Market stabilisation and resolving a seasonally unbalanced supply of agricultural products is one of the key preconditions for the stability of producers‘ incomes. In circumstances of an underdeveloped market infrastructure (storage capacities, collecting network, processing), producers are not able to solve on their own the problems relating to the pronounced seasonal character of production, which has a negative effect on their survival and development. On the other hand, some of seasonal surpluses of agricultural products can be marketed in the form of support in food to certain socially vulnerable population categories. This food aid follows the strategic objectives of supplying the food at affordable prices and at the same time supports the development of agriculture through market stabilisation.

Objectives

stabilisation of income of producers of seasonal products, through the removal of seasonal disproportion between supply and demand,

support to consumption of specific products that form seasonal surpluses,

support to supply of certain agricultural products at affordable prices for specific vulnerable population categories.

Measure description


Support is provided to collecting and marketing of pronounced seasonal surplus of agricultural products, primarily fresh vegetables, fruit, lamb, milk and dairy products. Internal market stabilisation requires funds for co-financing of a part of interest rates on short-term loans that collectors take from banks and it is an intervention that is necessary in case of market distortions. Market stabilisation instruments (Safety Net Measures) would be used in implementation of this programme in co-operation with NGOs (Red Cross, pensioners‘ associations, labour unions) and at the level of the practice that has so far shown that annual interventions are necessary for collecting 20,000 head of surplus lamb in predominantly rural areas, of seasonal character (September, October) as well as seasonal collecting (July-September) of vegetables (tomato, paprika, cucumber, watermelon…) and fruit (tangerines, kiwi, raspberry, blueberry…). This measure is implemented in the form of aid in food, primarily in milk and dairy products, up to 30% of price for products delivered to specialised institutions, such as hospitals, kindergartens, nursery homes and institutions for persons with special needs, and others. This mechanism makes possible a prompt intervention for alleviation of negative effects of seasonal imbalances at the agricultural products market.

Beneficiaries Producers, producer organisations and co-operatives or enterprises, farmers associations, vulnerable population-consumer categories, or specialised institutions.

Payment method

Upon collecting, based on reports from collectors and based on an application or a contract on supply, previously approved by the Ministry.

Implementation

Ministry and collectors.


The basis for calculating and payment by components are producer lists with data on quantities collected. Registered enterprises, engaged in collecting fruit and vegetables, slaughterhouses for lamb collecting and dairies submit data on products collected and prices, and present contracts signed with customers they supply the products to, and agreements with commercial banks, proving the amount of support, interest rate and relevant periods of time. Payments are made upon processing of documentation by appropriate authorities.


Ministry, person responsible Branimir Vujačić Agricultural Inspectorate

Financial plan


Support to collecting of seasonal surplus in plant production 150,000

Support to collecting of seasonal surplus in livestock production 80,000

Support to aid in food programme 100,000

Total 330,000

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1. MARKET-PRICE POLICY MEASURES 1.3. MARKET STABILISATION MEASURES

1.3.2. RISK MANAGEMENT IN AGRICULTURE


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Damage to agricultural crops, livestock and other resources are an inevitable part of agricultural production, especially the impact of bad weather conditions on crops and damage caused by attacks of large wild animals on livestock. Although some of these risks can be insured under the regular insurance system, producers rarely take advantage of this option since premium costs are high. Large damage is beyond the financial capacity of producers and can seriously undermine the survival of farms and hence the long-term sustainable development of agriculture.

Objectives

encouraging farmers to insure their crops and livestock, which would enable stability of income and risk reduction in agricultural production

reducing long-lasting negative consequences caused by weather conditions and other unexpected events

Measure description


Risk management support in agriculture consists of:

co-financing of costs of insurance against crop and livestock damage,

reimbursement of a part of the damage caused by wild animals,

financial support to agricultural producers in case of damage from weather elements and other significant damage.

Support for insurance against crop and livestock damage can be up to 50% of the total insurance amount. Reimbursement of damage caused by wild animals to livestock depends on the type and amount of damage. Reimbursement for damage from natural disasters that are not covered by insurance because insurance companies cannot accept such insurance is provided on the basis of regulations governing the system for damages in agriculture. The amount of reimbursement can be a maximum of 20% of the damage caused. In exceptional situations, for individual damage of a larger extent that have long-term and harmful consequences for individual holdings, damage is reimbursed according to the level of the actual damage done, based on a report produced by the Agricultural Inspectorate. In case of damage that a farmer could have been insured against in the regular insurance system, but failed to do so, the farmer can be reimbursed to a maximum of 10% of the damage caused.

Beneficiaries

agricultural holdings that have insured crops or livestock,

agricultural holdings where livestock was attacked and damaged by wild animals,

agricultural holdings that suffered damage caused by large natural and other major disasters.

Payment method

Upon conclusion of an insurance policy, upon receipt of a request, to the applicant's account

Implementation

Ministry in co-operation with insurance companies


Support to insurance is carried out on the basis of insurance company records. The payments are made to insurance companies. Damage caused by wild animal attacks, natural disasters and other is reimbursed on the basis of a rulebook on damages, laid down by the Ministry. In implementation of this measure, the Ministry works closely with the insurance companies and municipal self-governance.


Ministry, person responsible Spaso Popović Agricultural Inspectorate

Financial plan


Support to insurance in agriculture 20,000

Support and co-financing the damages 190,000

Total 210,000

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2. RURAL DEVELOPMENT MEASURES: 2.1. Axis 1: Measures for improving competitiveness of agriculture

2.1.1 SUPPORT TO INVESTMENTS IN AGRICULTURAL EQUIPMENT AND MECHANISATION


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One of the main causes of inadequate competitiveness of Montenegrin agriculture is the low productivity of physical assets, caused by insufficient supplies of mechanisation and equipment. Existing mechanisation, apart from a small part recently supplied under specific projects, is very obsolete and to a large extent worn-out. Due to difficult economic and social circumstances, agricultural holdings are not able to supply themselves with enough means for modernisation of production. Therefore, production is less efficient and human resources are not fully utilised. With better equipment and up-to-date mechanisation, it is possible to better fulfil the requirements for maintaining natural resources, animal protection and welfare and food safety.

Objectives

improving competitiveness by modernising agricultural holdings

better utilisation of assets and human resources

introduction of new technology and innovation

improving hygienic conditions on farms and raising product quality with positive effects on the environment and animal welfare.

Measure description


Support is given in the form of co-financing the costs of supplying the equipment and farm mechanisation, in order to improve production technology in different agricultural sectors, except in bee-keeping. The supply of specific items of mechanisation and equipment, as well as the specific lines or sector-specific mechanisation and equipment, are supported. More detailed criteria, including minimum and maximum amounts of eligible support investments will be defined in a tender that will be announced by the Ministry. The investments that can bring direct and considerable improvements to circumstances in agricultural holdings have precedence, with respect to improvements in commercial and other aspects of production, and in particular the investments giving positive effects in several agricultural holdings (machinery rings). The criteria are verified by basic data included in the application for support. The maximum participation of funds from the budget is 30% of the investment value. The support of up to 40% of the investment value can be provided for the holdings in less favoured areas or for young farmers; if both of these conditions are fulfilled, the support amounts up to 50%. Support to investments for these purposes from the World Bank MIDAS Project will be elaborated separately.

Beneficiaries Agricultural holdings or groups of agricultural holdings that fulfil the criteria set

Payment method

Upon receipt of documents on investments (invoices, contracts, bills of lading)

Implementation

Ministry in co-operation with donors and commercial banks


The measure is implemented on the basis of a tender that the Ministry publishes, or based on implementation of a current Government's project ''A JOB FOR YOU'' or under a donor project. For the beneficiaries of the credit „A JOB FOR YOU―, the funds will be granted to commercial banks when the terms of redemption become due and will serve for settlement of the annuities up to the level of 30%. The support is provided based on evidence on the investment made and a field report from the authorised service, stating that the funds were used for adequate purpose. The support to investments under the MIDAS Project will be harmonized with the World Bank procedures.


Ministry, person responsible Branimir Vujačić Authorised services.

Financial Plan


Support to investments by criteria defined in tenders 300,000

Participation in the project „A JOB FOR YOU― for supply of mechanisation and equipment

50,000

Support to investments under the MIDAS Project – World Bank 100,000

Total 450,000

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2.1.2 SUPPORT TO INVESTMENTS IN LIVESTOCK FARMS


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Livestock production in Montenegro is not efficient enough, due to both the lack of physical capital and low labour productivity. A modern livestock production system is based on a combination of good genetic potential of livestock, the efficient and economical production of feed, as well as on adequate facilities and equipment for livestock breeding. Even the extensive production systems require considerable capital investments. Very few livestock facilities fulfil the minimum EU standards with respect to hygiene, environmental protection (especially the nitrates Directive) and animal health and welfare. Faster development of the livestock sector of Montenegro is not possible without a stronger support to investments in reconstruction of existing and construction of new main and auxiliary facilities in livestock farms.

Objectives

improving competitiveness of livestock farms through a complete modernisation of production facilities,

better utilisation of capital and human resources,

introduction of new technology and innovation,

fulfilment of EU standards relating to the protection of the environment, maintaining high levels of hygiene and animal protection and welfare.

Measure description


Assistance is primarily given for investments in livestock farm building:

the building of facilities,

supply of necessary equipment

supply of breeding livestock. The projects should enable considerable improvements in production technology and fulfilling of the EU standards in livestock breeding. Support to projects that integrate the necessary physical capital, or parts thereof is possible. The reconstruction of existing farms and the building of new farms are supported, with preference for standard designs in case they are more rational for achieving of the aims of this measure. The projects should bring direct and considerable improvement to agricultural holdings with respect to improved economic circumstances, as well as other aspects of production. This criterion is verified by using basic data on the holding, the investment plan presented, which is an obligatory, integral part of the application for support. The support is provided in the form of co-financing the supply of material for reconstruction of existing and construction of new facilities and supply of equipment. More detailed criteria, including the minimum and maximum amounts of investments eligible for support shall be defined in a tender to be published by the Ministry. The maximum participation of budgetary funds is 30% of the investment value. The support of up to 40% of the investment value can be provided for the holdings in less favoured areas or for young farmers; if both of these conditions are fulfilled, the support amounts up to 50%. Support to investments for these purposes under the World Bank MIDAS Project will be elaborated separately.

Beneficiaries Agricultural holdings that fulfil criteria from the tenders called, except those that already received the support for supply of mechanisation and equipment in the course of the same year, under the measure 2.1.1.

Payment method

Upon receipt of documents on investments

Implementation

Ministry in co-operation with the authorised service, donors and commercial banks


The measure is implemented on the basis of a tender that the Ministry publishes or based on implementation of a current Government's project ''A JOB FOR YOU'' or under a donor project. The support is provided based on evidence on the investment made and a field report from the authorised service. The support to investments under the MIDAS Project will be harmonized with the World Bank Procedures.


Ministry, person responsible Branimir Vujačić Authorised services.

Financial Plan

Component Amount, €

Support to investments by criteria defined in tenders 250,000

21

Financial plan

Participation in the project „A JOB FOR YOU― Investment support of the project MIDAS – World Bank

100,000 100,000

Total 450,000

22


2.1.3 SUPPORT TO SETTING-UP OF PERENNIAL CROP PLANTATIONS


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There are agro-ecological conditions and significant land potential for setting up of commercial production and cultivation of fruit trees as well as wine and table varieties of grape vine. Due to agricultural households‘ inability to independently and adequately finance investments in these agricultural sectors, the resources available are underutilised. That is why this programme supports setting up of commercial orchards and vineyards that will be highly profitable, with regular use of modern agro-technical measures. Moreover, the transition from current production of standard planting material to production of certified planting material is supported. Products from primary plant production of a higher quality are a precondition for higher value of processing industry products (olive oil, wine, juices, etc.).

Objectives

better use of natural resources through setting up of new perennial plantations using planting material of controlled quality,

support to revitalisation and reconstruction of old olive trees, which is a precondition for unhindered application of agro-technical measures, quantity, quality and regularity of yield and, finally, a precondition for production of oil of a higher quality,

setting up of a database for development of vine, citrus and olive cadastres,

application of up-to-date scientific knowledge and the latest technology in demonstration fruit tree plantations, as a form of education of producers and an incentive to modernization of existing fruit tree plantations,

production of certified planting material,

increasing the competitiveness of domestic products,

providing conditions for an optimal nutrition method in order to enable full development of genetic fruit-bearing potential of the plants cultivated and in order to protect the environment through a rational use of fertilisers.

Measure description


Support is given for investments in setting up new and vineyards and orchards, for renewing old olive trees, for investments for setting up of plantations of mother plants and for wine and soil analysis. Agricultural producers submit application together with the following: evidence on purchasing planting material – bill, dispatch note, evidence on health safety and varietal purity and a statement on planting done. The deadline for applying is May 1 for spring planting and December 15 for autumn planting. Support to vineyard setting up is 4,000€/ha, provided that the vineyard has been set up on an area of not less than 0.2ha with planting density of min 4,000 grafts per ha for wine varieties or min 2,000 grafts per ha for table grape vine varieties. Setting up of the following commercial plantations is supported: pome and stone fruit species in the amount of 3000€/ha, provided that the minimum

area is 0.5ha and planting density of min 800 seedlings per ha; berry fruits in the amount of 3500€/ha (strawberry) and 5000€/ha (raspberry and

blueberry), provided that the minimum area is 0.2ha to max 2ha with planting density per ha: of min 10,000 seedlings of raspberry, min 40,000 seedlings of strawberry, min 2,250 seedlings of blackberry, blueberry, red currants;

nuts and subtropical fruit (with the exception of olive) fruit trees in the amount of 3000€/ha, provided that the minimum area is 0.5ha with planting density of min 500 seedlings per ha.

Financial means used for buying planting material for olives used for setting up of an olive grove of minimum 0.2 ha with planting density of min 400 seedlings per ha are refunded in entirety. (Law on Olive Growing, Official Gazette of the Republic of Montenegro No. 55/03).

The maximum support per single application for setting up is as follows: vineyard up to 5 ha, commercial plantations of pome and stone fruits up to 5 ha, berry fruits up to 2 ha and nuts and subtropical fruits up to 5 ha. The requirement for reimbursement for revitalisation is an olive grove put in order and revitalisation of min 10 trees. The producer presents the application for reimbursement for pruning made, reconstruction of crowns of old olive trees to his/her association by March 31. In accordance with the Work Programme of the Extension Service, setting up of demonstration fruit tree plantations is supported.

Beneficiaries Agricultural holdings that fulfil the criteria and producers‘ associations

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Payment method

To giro accounts of producers and producers‘ associations following the report of the Extension Service in Plant Production. For autumn planting, the payment may be made in n+1 year. For laboratory analysis, to the reference institution upon the receipt of the invoice.

Implementation

Ministry in co-operation with the reference institutions Extension Service person responsible Vukota Stanišić and Centre for Land and Melioration person responsible Mirjana Radulović PhD, head of the legal person authorized for laboratory analysis of wine.


Support is provided based on the following: Documentation presented, Field report produced by the Extension Service, and Report of a reference institution on the laboratory analysis performed. Planting in the field is verified by the Extension Service in Plant Production, in a report submitted to the Ministry. Following the examination of documentation and field visits, the Extension Service, in co-operation with the association of olive growers, assesses whether the requirements for a reimbursement on the grounds of revitalisation of olive trees have been complied with and by June 1, presents the Ministry with a report, together with inspection review stating the situation in the field and cadastre data for every applying producer. After setting up of demonstration fruit plantations in accordance with its Work Programme, the Extension Service establishes whether the conditions have been complied with, the value of the investments and presents the Ministry with a report, which serves as a basis for payments. After laboratory analysis of soil and wine samples, the reference institution presents the results of analysis to the producers, and presents the Ministry with a report on the job done, accompanied by the invoice.


Ministry, person responsible Marija Krstić, PhD Agricultural Inspectorate

Financial plan


Support to vineyard setting up 4,000€/ha 200,000

Support to setting up of commercial plantations of: Pome and stone fruit 3000€/ha, Berry fruit (strawberry 3500€/ha),(raspberry and blueberry 5000€/ha), Nuts and subtropical fruit (except olives) 3000€/ha

150,000

In olive growing: support to investments in planting material of olives and covering part of the expenses for olive grove revitalisation of up to 5 €/tree

170,000

Setting up of demonstration fruit tree plantations of up to 50% of the investment value

50,000

Support to setting up of plantations of mother plants in the area of min 0.1ha to max 2ha per fruit species of up to 30% of the investment value

10,000

Covering a part of the expenses of laboratory analysis of wine samples of up to 50€/sample

15,000

Covering a part of the expenses of laboratory analysis of soil samples of up to 25€/sample, depending on the parameters analyzed.

15,000

Total 610,000

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2.1.4. SUPPORT TO CONSTRUCTION AND EQUIPPING OF GREENHOUSES


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Montenegro has favourable agro-climatic conditions for various types of plant production, and in particular the greenhouse production. Greenhouse production of vegetables, fruit and flowers significantly reduces the risks from adverse external effects, makes possible extension of areas under specific crops, extends the vegetation period and setting the ripening period of crops in order to achieve maximum of market effects. Making use of the advantages stated above, this production could be competitive in a market far larger than that of Montenegro. However, as a result of socio-economic structure of agricultural holdings and high investments required, its share in total plant production is not adequate. It is for that reason that projects of construction and equipping of greenhouses are supported, taking into account the advantages of greenhouse production.

Objectives

increase in competitiveness of greenhouse production through modernisation of production technologies,

increase in yield, extended growing season, better product quality, more diverse vegetable supply.

Measure description


Support is provided to construction and equipping of greenhouses of area of min. 400m2. Advantage is given to projects that could bring a direct and significant improvement to an agricultural holding in terms of better economic position and other production aspects. That criterion is verified through basic data on the holding and the investment plan submitted, which is an obligatory and integral part of the application for support. Maximum share of budgetary funds is up to 30% of the investment value.

Beneficiaries Agricultural holdings and farmers‘ associations fulfilling the criteria set

Payment method

To giro accounts of producers and producers‘ associations following the field report of the Extension Service in Plant Production.

Implementation

Ministry in co-operation with the Extension Service, donors and commercial banks, person responsible Vukota Stanišić


The measure is implemented on the basis of a tender that the Ministry publishes, or based on implementation of a current Government's project ''A JOB FOR YOU'' or under a donor project. The support is provided based on evidence on the investment made and a field report from the Extension Service.


Ministry, person responsible dr Marija Krstić Agricultural Inspectorate

Financial plan


Support to investments by criteria defined by the tender 180,000

Total 180,000

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2.1.5 SUPPORT TO INVESTMENTS RELATED TO LAND POLICY


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The quality and fertility of soil are among the main requirements for an efficient agriculture. Draughts are frequent, as well as too much water in the soil. Montenegro, apart from fragmented farms, has a large share of soil of low fertility resulting from the soil composition, presence of rock and other limitations (broken relief, sloping land surfaces etc.). Agricultural holdings are not able to finance the costs of regulation of water and make other investments in soil on their own. Both large and small projects that improve soil quality can have a positive impact on agriculture and its economic effectiveness, with strict observance of environmental protection principles.

Objectives

improving competitiveness of agriculture through soil improvement

better utilisation of land resources, including pastures,

introduction of new technologies and innovations

maintenance and improvement of protection of the environment and natural resources

Measure description


Support is provided for the following:

large projects for water irrigation and drainage that relate to specific areas; they are planned, as a rule, in the local communities,

small projects for land operations carried out, as a rule, by individual holdings. Large projects primarily relate to regulation of water regime (irrigation and draining), and may also include other land operations with the same objective. The basis for financial support is project documentation that contains technical and economical parameters, as well as the parameters needed to assess the environmental impact of land operations. Small projects relate to improvement of water regime on specific agricultural holdings, calcification, meliorations, recultivation, fertility improvements and other ways of enhancing the soil quality. The projects should bring considerable improvement to the productive capacity of the soil. This criterion is verified by using basic data on the holding and the submitted action plan that forms an obligatory, integral part of the application for support. Maximum share of budgetary funds is 30% of the investment value, or of the programme or activity implemented, as appropriate.

Beneficiaries

Large projects: local communities, associations and groups of producers or citizens Smaller projects: agricultural holdings that fulfil the criteria set, except those that received support in the course of the same year for the same purposes under the measure 2.1.1, 2.1.2, 2.1.3 and 2.1.4

Payment method

Upon receipt of an invoice accompanied by a report.

Implementation

Ministry in co-operation with the Extension Service, donors and commercial banks, person responsible Vukota Stanišić


The measure is implemented on the basis of a Ministry‘s tender or based on implementation of a current Government's project ''A JOB FOR YOU'' or under a donor project. The support is provided based on evidence on the investment made and a field report from the authorised service.


Ministry, person responsible Branimir Vujačić Agricultural Inspectorate

Financial plan


Support to investments by criteria to be laid down in detail in the tender 200,000

Total 200,000

26


2.1.6 SUPPORT TO INVESTMENTS IN PROCESSING OF ANIMAL PRODUCTS


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The development of the animal products processing industry in Montenegro has been evident since 2000. Investments are made in new facilities, technology and production therein has been modernised. There is a larger number of smaller slaughterhouses, meat processing facilities and dairy facilities (e.g. dairies and cheese plants). Productivity and hygiene are improved, but without additional and bigger interventions, this industry cannot keep up with the competition at the market opening, which could also indirectly jeopardise the primary agricultural production. In order to fulfil the demanding EU standards in the areas of environmental protection and food safety, new significant investments are needed. Lack of new product development, promotion and marketing efforts are evident. Value added in processing industry is relatively low and does not provide a sustainable position in the domestic market. Development of the animal products processing industry is one of the main conditions for developing livestock farming as the most important branch in Montenegro‘s agriculture. Investments in physical capital are needed, as they would enable higher labour productivity as well as investments in the transfer and development of knowledge in management and marketing.

Objectives

improving competitiveness of animal products processing through a thorough modernisation of production and marketing conditions,

increasing added value in production of animal products by increasing efficiency in processing and marketing,

introduction of new technologies, innovations, and opening of new market possibilities,

fulfilment of EU standards and targeted improvements with regard to quality, environmental protection and food safety,

strengthening links with primary production.

Measure description


The support to increase added value in the animal products processing industry encompasses investments in the processing and marketing of existing products, as well as in the development of new products, processes and technologies. All projects have to demonstrate that they fulfil EU requirements in the area of food safety and environmental protection (which is a condition for every support). Support is available for projects of whole or partial solutions for processing and marketing. Co-financing applies to the supply of materials, equipment and mechanisation, as well as for construction works for reconstruction of existing or building new facilities, patents and licences, development of technical documentation, marketing analysis and the costs of new product development. Economic justification of a project is proved by a business plan, which is a necessary integral part of an application for assistance. The business plan has to include elements of the technical specification of a project, a specification relating to compliance with hygiene and environmental protection conditions, the organisation and utilisation of domestic production resources in livestock farming, as well as marketing possibilities in the domestic and export markets. Advantage is given to projects that directly encourage the development of primary livestock farming in regional and national contexts. More detailed criteria, including the conditions and amounts of investments eligible for support shall be defined in a tender to be published by the Ministry. The maximum share of budgetary funds is up to 30% of the investment value, while the maximum amount of annual support per project may amount to 50,000 €.

Beneficiaries Micro, small and medium enterprises

Payment method


Implementation

Ministry in co-operation with professional services, donors and commercial banks.


The measure is implemented on the basis of a tender that the Ministry publishes, or based on implementation of a current Government's project ''A JOB FOR YOU'' or under a donor project. The support is provided based on evidence on the investment made and a field report from the authorised service.


Ministry, person responsible Branimir Vujačić Authorised inspectorates and services.

Financial Plan


Support to investments by criteria to be set in detail by the tender. 440,000

27

Financial plan

Participation in the project „A JOB FOR YOU― 60,000

Total 500,000

28


2.1.7 SUPPORT TO INVESTMENTS IN STORAGE, PACKING AND PROCESSING OF PLANT

PRODUCTS


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One of very important conditions for plant production development - especially in the vegetable and fruit sector - is a well-developed market infrastructure that enables the storage and keeping of fresh produce for the market, thus reducing the seasonal character of those products. The possibility of marketing fresh produce for a longer period of time, as well as processing those products, can significantly increase the value added of plant production, while having a positive effect on the competitiveness of these sectors. The market infrastructure in Montenegro is underdeveloped. The number and capacity of cooling facilities are very limited, and lack of processing facilities in this field poses particular problem. The value added in plant production is thus relatively low and it does not enable long-term sustainable positioning on the domestic market. Export potential is only partly used. In order to fulfil the high standards of the modern market with respect to quality, quantity and food safety, larger investments are needed, and they cannot be made without significant support from budgetary funds. Investments in physical capital, which would enable higher labour productivity, as well as in the transfer and development of knowledge in management and marketing, are needed.

Objectives

improving competitiveness of processing plant products through a thorough modernisation of production and marketing conditions,

increasing value added in plant product production through increased efficiency in processing and marketing,

introducing new technologies, innovations and opening new market possibilities,

meeting EU standards and targeted improvements in food quality and safety,

strengthening links with primary production.

Measure description


Support is given for investments that show an increase in added value in the following segments:

collecting logistics,

storing, processing, packing and marketing of the products,

as well as for investments in the development of new products, processes and technologies.

Projects of complete or partial solutions are supported. The following are co-financed: supply of materials, equipment, mechanisation as well as construction works for reconstruction of existing and building new facilities; patents, licenses and development of technical documentation, marketing analyses and the development of new products. All projects have to demonstrate compliance with the EU standards (a condition for every support). Potential beneficiaries need to propose a clear business plan, proving that the project is economically justified; it has to include elements of the technical specification of the project, a specification relating to compliance with hygiene and environmental protection conditions, the organisation and utilisation of domestic production resources in plant production, as well as marketing possibilities in the domestic and foreign markets. Advantage is given to projects that directly encourage the development of primary plant production. More detailed criteria, including the conditions and amounts of investments eligible for support shall be defined in a tender to be published by the Ministry. The maximum share of budgetary funds is up to 30% of the investment value, while the maximum amount of annual support per project may amount to 50,000.00 €.

Beneficiaries Micro, small and medium enterprises

Payment method


Implementation

Ministry in co-operation with professional services, donors and commercial banks


The measure is implemented on the basis of a tender that the Ministry publishes, or based on implementation of a current Government's project ''A JOB FOR YOU'' or under a donor project. The support is provided based on evidence on the investment made and a field report from the authorised service.


Ministry, person responsible Branimir Vujačić Authorised inspectorates and services

29

Financial plan


Support to investments by criteria to be set in detail by the tender 300.000

Participation in the project „A JOB FOR YOU― 30.000

Total 330.000

30


2.1.8 SUPPORT TO INVESTMENTS IN PROCESSING ON FAMILY HOLDINGS


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Rural areas have a long tradition in processing various animal and plant products at their own households. The products, such as cheese, meat products, different kinds of drinks and fruit and vegetable products – they are all an important part of the rural economy and they contribute to improvements in the economic position of family holdings. There is the potential available that can enrich the supply of local products and make possible both the employment of the rural workforce and the maintenance of rural infrastructure. These products also offer the possibility of increasing the added value to agricultural production, especially when marketed through tourism.Access to market and satisfying the needs of a modern consumer require adjustments of the volume and quality, particularly with regard to the hygiene standards of products, and harmonisation with the EU standards in the area of environmental protection and food safety. Investments in physical capital are needed, which would enable higher labour productivity, as well as in development of technologies and in transfer of knowledge into production.

Objectives

improving the competitiveness of family agricultural households,

increase in added value of agricultural products through increase in efficiency in processing and marketing,

introduction of new technologies and innovations and opening up new market possibilities,

improving product quality through compliance with the EU standards as regards food safety and environmental protection,

preserving the production of traditional products,

enrichment of tourist offerings with specific and traditional products of high quality.

Measure description


Support is given for investments in processing animal and plant products, including collected products (medicinal herbs, mushrooms, forest fruit, etc.). Family agricultural households, engaged in processing as an additional occupation, are eligible for this support, as well as producers groups united for processing certain agricultural products (raw materials) from family holdings. Investments in the processing and marketing of existing products, as well as in the development of new products, processes and technologies, are supported. All projects have to prove in entirety that they comply with the EU standards (requirement for every support) that apply to processing on agricultural holdings. The following are co-financed: supply of material, equipment and mechanisation; construction works for reconstruction of existing and building new facilities. Potential beneficiaries submit a business plan, which is an obligatory integral part of the application for support. The business plan has to include basic data on the household, or producer organisation, as appropriate, elements of the technical specification of the project, a specification relating to compliance with hygiene and environmental protection conditions, use of their own production resources and supply of agricultural products. The maximum share of budgetary funds amounts to 30% of the investment value. For holdings in less favoured areas or for young farmers, the support can amount to a maximum of 40% of the investment value; if both conditions are fulfilled, that maximum is 50%. Maximum amount of support per project is 4000€.

Beneficiaries Agricultural holdings engaged in additional activities of processing agricultural products, and producers‘ organisations fulfilling the criteria set.

Payment method

To giro-account of producers, following the receipt of a report from the authorised service.

Implementation

Ministry in co-operation with professional services.


On the basis of applications received or the competition ''A JOB FOR YOU'' or under a donor project. The support is provided based on evidence on the investment made and a field report from the authorised service.


Ministry, person responsible Radana Damjanović. Authorised inspectorates and services

Financial plan


Support to investments in processing at family holdings 60,000

Total 60,000

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2.1.9 SUPPORT TO PRODUCERS' ORGANISATIONS


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Montenegro‘s agriculture is characterised by fragmented plots and a large number of small producers who sell smaller amounts of product at organised market, with the rest being directly sold or consumed within their respective households. Production potential could be better utilised through unified sales and/or processing efforts, which would also strengthen the market structure. All this would bring about, as a final result, an increase in competitiveness of agriculture. Producers‘ organisations can encourage other producers to produce for the market.

Objectives

support to farmers‘ initiatives for forming associations and co-operation in production and market activities,

strengthening market infrastructure for agriculture,

reducing production costs and increasing the value added of agricultural products.

Measure description


Support is given for establishing and operations of producers‘ organisations. Organised producers groups fulfilling legal requirements are eligible for support. The support is given for the first 5 years from the day of establishing in the form of annual grants for covering costs of founding and administrative expenses of a producers‘ organisation operation. The fixed expenses include the adaptation of its members production to market conditions, costs of marketing of products, which involves preparation and organisation of sale, as well as the provision of common rules and information about production, quality and demand.

Beneficiaries Producers‘ organisations, the Confederation of Co-operatives of Montenegro

Payment method


Implementation

Ministry in co-operation with associations and the Confederation of Co-operatives of Montenegro


The measure is implemented on the basis of applications submitted by potential beneficiaries. Support is calculated and paid on the basis of records on turnover of products and services, submitted by the registered producers‘ groups. The rights acquired based on turnover in 2009 will be paid in the first half of 2010. Note: Payments in the financial plan below refer to support to activities of national associations, local associations and activities of the Confederation of Co-operations of Montenegro.


Ministry, person responsible Vukica Perović Agricultural Inspectorate

Financial plan


Support to associations 40,000

Support to activities of the Confederation of Co-operatives of Montenegro

90,000

Total 130,000

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2.1.10 IMPROVING THE QUALITY OF PRODUCTS


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Product quality is an important element of market success and competitiveness in agriculture. Private organisations develop their own market brand, to achieve recognition and greater success on the market. It is possible to achieve greater efficiency through vertical integration of agricultural production and processing into unique quality schemes. In this way, it is possible to guarantee a higher level of product traceability, which is becoming increasingly important from the consumers‘ viewpoint. Important steps have been taken in Montenegro‘s agriculture and processing industry towards establishing of modern quality policy systems, but more intensive efforts are needed to strengthen competitiveness. It is possible to achieve higher quality by guaranteeing additional elements, starting from different forms of protection of designations of origins and geographic indications to organic products. Those systems are under special official protection and supervision. A high-quality product should be accompanied by appropriate advertising efforts. Information about high-quality of a product could additionally attract consumers. Montenegro has a significant production potential for high-quality products, but for the time being it is underutilised. Lack of adequate technology and equipment in small plants, where traditional methods of food production are still used, make difficult observance of requirements from the ―hygiene package‖ and affect their competitiveness. Support to production upgrade (reconstruction of facilities, implementation of good hygiene practice, good production practice) and support to improving the quality of products and setting up of schemes for achieving higher standards, especially by connecting primary production with processing, can significantly increase opportunities for marketing of agricultural and food products on the domestic market, especially through tourism.

Objectives

improving competitiveness of primary agriculture and processing,

improving product quality,

encouraging agricultural holdings to participate in quality schemes.

Measure description


Support is given for the following:

introduction and certification of quality management and food safety system,

upgrade and modernisation of traditional production in small facilities,

involving agricultural producers in registered quality schemes.

Support for introduction and certification of quality systems and food safety refers to costs of introduction and certification of HACCP programme, HACCP integrated with quality management system and amounts up to 50% of total introduction and certification costs to the amount of maximum 8000 € per applicant. Support for modernisation of production in small facilities, where traditional food production methods are used, is given as co-financing, based on the proposed action plan and amounts to a maximum 5000€ per project. Support for involvement of agricultural producers into the registered quality schemes refers to the costs of introduction of quality schemes, certification and participation in the scheme and is given for the first 5 years from the day of entering the scheme. This support is given in the form of a standardised payment and in 2010, it will amount to a maximum of 1200 € for organic farming and 600 € for participation in other quality schemes.

Beneficiaries Registered food producers. Agricultural holdings involved in registered quality schemes.

Payment method


Implementation

Ministry in co-operation with professional services and donors.


The measure is implemented based on annual applications submitted by potential beneficiaries. Support to calculation and payment of support are reports on activities undertaken and records of certification bodies.


Ministry, person responsible Radana Damjanović Authorised inspectorates and services.

33

Financial plan


Participation in costs of introduction and certification: HACCP system, HACCP integrated with the quality management system (up to 50% of the total project value, not more than 8000 € per project)

35,000

Participation in costs of upgrade and modernisation of production using traditional methods in small facilities: reconstruction of facilities, introduction and implementation of good hygiene practice, good production practice and other general and special hygiene conditions (up to 5000 € per project)

55,000

Support to involvement of producers in registered quality schemes (1200 € for organic farming and 600 € for joining other quality schemes)

60,000

Support to collective actions of producers included in quality schemes (different types of education, informative activities for consumers, providing better access to market etc.)

15,000

Activities of the certification body „Monteorganica― 50,000

Total 215,000

34


2.1.11 PROMOTION OF AGRICULTURAL PRODUCTS


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One of the characteristics of Montenegrin agriculture is its offering a very diverse product range to the market, but in small series. Consumers often do not have enough information about the products, especially tourists who visit Montenegro and consumers abroad. On the other hand, fragmented producers and the processing industry are not able to promote their products on their own. The lack of economy of volume can be overcome through supported generic promotion, as well as by promoting certain market niches for specific products. Thus, it is necessary to continue providing targeted support and to intensify the work in promoting and advertising of Montenegrin products.

Objectives

strengthening competitiveness through promotion of Montenegrin agricultural products, in the country and abroad,

establishing and strengthening links between tourism and agriculture,

increasing consumer awareness of product quality.

Measure description


The measure is implemented by subsidising different kinds of promotional campaigns:

organisation of and participation in local and international fairs,

exhibitions and other events,

advertising through different communication channels,

informative and educational activities aimed at consumers. The advantage is given to promotional and informative activities under the registered quality schemes that highlight products‘ specific features with respect to their quality, production methodologies and their contribution to the reduction in harmful effects on the environment. The support is given in the form of co-financing on the basis of the submitted activity programme.

Beneficiaries Operators engaged in production and processing of agricultural products, local communities, non-governmental organisations.

Payment method

Upon receipt of the invoice, application, report.

Implementation

Ministry in co-operation with producers, local communities and NGOs.


The measure is implemented based on annual applications of potential beneficiaries and programmes submitted.


Ministry, person responsible Branimir Vujačić

Financial plan


Participation in international fairs 18,000

National fairs Regional fairs - exhibitions (Blueberry Days, Days of Wine and Bleak, The First Scythe, The Feast of Olives, etc) Local exhibitions and other events Educational, informative and advertising activities.

13,000

26,000 18,000 10,000

TOTAL 85,000

35

2. RURAL DEVELOPMENT MEASURES: 2.2. Axis 2: Measures for sustainable management of natural resources

2.2.1 PRESERVATION OF GENETIC RESOURCES IN AGRICULTURE


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There are very few countries like Montenegro that are rich in animal and plant life –biodiversity - on a relatively small land surface It also has a very rich plant and animal genetic resources in agriculture, as reflected in a large number of varieties and breeds and in particular the autochthonous population of plants and animals used in food production. This fact imposes an obligation on the state to pay due attention to biodiversity in agriculture. Important steps have been taken in this direction: The National Programme for the Preservation of Genetic Resources in Agriculture (2009–2013) was adopted in 2007, followed by the Action Plan for its implementation. These documents bind Montenegro to harmonise the issues of preservation and sustainable use of genetic resources in plant production and livestock farming with international conventions and principles. The implementation of these documents requires adequate financial support from the national budget, which is, in the form of direct payments per hectare or per head, given to encourage agricultural holdings to maintain the genetic resources.

Objectives

preservation and sustainable use of endangered autochthonous and local breeds of livestock, as well as plant varieties endangered by genetic erosion,

contribution to the overall preservation of biodiversity,

increasing awareness of genetic resources as a national resource in Montenegro, and contribution to its affirmation as an ecological state,

preservation and development of landscape.

Measure description


The support is given for livestock farming and plant production, in line with the Action Plan for preservation and sustainable use of genetic resources in agriculture. The support includes: In livestock farming: rearing of the buša breed of cattle; the zetska žuja, sora, pivska pramenka and ljaba in sheep breeding and the domestic Balkan goat; In plant production: growing autochthonous varieties of grape vine, fruit including olives, field crops and vegetables and fodder crops. The support is in the form of payments per head of cattle or per hectare of plants grown. The amounts to 60 € per livestock unit and 130 € per hectare. Note: the amount of support per head and per hectare stated above is added to the basic payments from the measures of direct support to plant and livestock production (Market-price policy – Measures 1.1.1 and 1.1.5). Under this measure, in addition to support to producers, institutional support is provided to implementation of the Action Plan for preservation of plant and animal genetic resources and the research programme on mushroom resources.

Beneficiaries Agricultural holdings that sign a contract stating their contractual obligations. Institutions authorised for genetic resources in agriculture.

Payment method

Upon receipt of an invoice accompanied by a report, cash payments to agricultural producers, through banks.

Implementation

Bio-technical Faculty, person responsible Natalija Perović and Phytosanitary Administration Zorka Prljević


The measure is implemented on the basis of annual applications from potential beneficiaries and applications submitted by authorised organisations, together with the plan of activities for 2010.


Ministry, person responsible Branko Bulatović

Financial plan


Genetic resources in livestock farming: (supply of male breeding animals 4000 €; premiums for 80 head of cattle, 60€ each - 4800 €; 1000 sheep and 200 goats 8 € each - 9600 €; additional premium for rearing 200 head of zetska žuja of 7€ per head – 1400 €, in line with the Action Programme

19,800

Monitoring, identification, inventory making and organisation of ex situ conservation, morphological characterisation, reports -5000€; Research and study on morphological and production features of domestic sheep breed – sora and definition of its typical breed features – 4000 €

9,000

Genetic resources in plant production (direct payments, inventory 15,000

36

Financial plan

making, in situ and ex situ conservation, study, setting up of collections, registers, reports, etc.)

Research on mushroom resources: Collecting of mycological material, research, collection keeping, presentation of results and publication of magazines, etc.

10,000

Educational campaigns and raising the awareness on the need to preserve genetic resources

4,000

Total 57,800.00

37


2.2.2 ORGANIC FARMING


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Production systems in Montenegrin agriculture are chiefly extensive and can relatively simply be included in a programme of limited use of protection products, fertilisers and other conditions of super-standard technologies like organic production. This means that there is the great potential for a significant part of agriculture to be adjusted to production technologies that enable the sustainable use of agricultural land and hence the long-term protection of natural resources and the environment. Supporting these technologies that follow the environmental objectives can also contribute to an increase in production volume under the quality schemes, and thus meet the increasing domestic and foreign demand for environmentally acceptable products.

Objectives

sustainable management of natural resources,

reducing negative impact of agriculture on the environment,

preservation of biodiversity,

increasing the quality of agricultural products,

affirm Montenegro‘s status as an ecological state.

Measure description


Support is given for organic production in any agricultural segment. Producers need to observe the rules defined by legislation for any specific production system. The support is in the form of payment per hectare or per livestock unit and amounts to 150 € per hectare for crops and medicinal herbs grown, 250 € per hectare for vegetables, perennial plants, seed and planting material, 50 € per livestock unit, 2 € per head of poultry, 30 € per bee hive. Under the FAO project ―Support to small producers in organic agriculture‖ implementation of two demonstration projects is supported, with the objective of educating the advisers and farmers in the field of organic production. Under this measure, the ―Organic Agriculture Development Program‖ project, provides support to investments in production, processing and distribution of organic products (support through a grant scheme). Note: the amount of support per head and per hectare stated above is added to the basic payments from the measures of direct support to plant and livestock production (Market-price policy – Measures 1.1.1 and 1.1.5).

Beneficiaries Agricultural holdings that voluntarily accept the obligations taken for a minimum of 5 years.

Payment method


Implementation

Ministry, Certification body ''Monteorganica'', person responsible Jovan Nikolić


The measure is implemented on the basis of annual applications from potential beneficiaries. The funds for implementation of demonstration projects are granted according to the procedures of FAO. Utilization of funds under the project ―Organic Agriculture Development Program‖ will be done according to the criteria laid down in the Grants Manual.


Ministry, person responsible Radana Damjanovic Authorised inspectorates and services

Financial plan


A. Payments in plant production: - for crops and medicinal herbs grown – 150€/ha, - for vegetables, perennial plantations, seed and planting material

250€/ha B. Payments in livestock production: - per livestock unit - 50€, - per head of poultry - 2€, - per bee hive - 30€.

65,000

Implementation of FAO project »Support to Small Producers in Organic Agriculture«

25,000

Implementation of the project »Organic Agriculture Development Program«

- contribution of the Government of the Kingdom of Denmark – 200,000€

260,000

38

Financial plan

- contribution from the budgetary funds – 60,000€

Total 350,000

39


2.2.3 SUSTAINABLE USE OF MOUNTAIN PASTURES


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Montenegro is very rich in mountain pastures that are traditionally used in extensive livestock farming (cattle, sheep and goats), for milk and meat production. These mountain pastures, including katuni (summer pastures), represent a special value that contributes to the preservation of local biodiversity (specific flora and fauna, use of adapted local breeds) and has a special economic importance. That system enables the production of traditional products (different types of cheeses, skorup (matured cream made of sheep milk and other dairy products, lamb and other types of meat, etc.) that play an important role in the Montenegrin national cuisine. According to the available data, there are around 500 katuni in Montenegro, of which a great number is used even today, but with far smaller livestock numbers. A number of rural holdings still practice that form of livestock keeping, thus maintaining the mountain pastures and reducing the effects resulting from abandoning the pastureland. However, there are many underutilised pastureland resources. Preserving mountain pastures and transhumance are also very important from the viewpoint of preserving the natural and cultural heritage. Direct support per head of livestock included in transhumance can encourage agricultural holdings to maintain and further develop this production type.

Objectives

preservation and rational utilisation of natural resources,

sustainable management of natural resources,

protection of environment ,

preservation of biodiversity,

preservation of natural and cultural heritage,

preservation of traditional products.

renewal of the community pastures by removing shrubberies and re-afforestation,

preventing soil erosion,

construction of watering places.

Measure description


The support is given to the agricultural holdings practising transhumance for at least two months in a year. The support is in the form of a payment per livestock unit. One livestock unit means: a cow of 500 kg and above, ox, two heifers/or steers, 8 sheep, 10 goats, one horse, while lambs and calves are not included in the calculation for the premium. All species and categories of ruminants and maximum 2 horses are taken into account for calculation. The minimum number eligible for support is 5 livestock units. The amount of support per livestock unit is 15 €. In case the total amount of applications for support received is higher than the amount planned, the payment per livestock unit shall be reduced proportionally. The precondition for support for cattle is that animals are identified with earmarks and that their movement to katun is reported by the Movement Notificaition form (movement to katun) in accordance with the legislation in force. The total amount of support to farmers who do not satisfy these preconditions will be descreased for unidentified cattle up to 15% and for unreported transhumance up to 10%. Support within the World Bank project MIDAS (GEF) will be provided separately and implemented in accordance with the Operational Manual.

Beneficiaries Agricultural holdings fulfilling the criteria and voluntarily accepting the obligations taken for a minimum of five years.

Payment method

Directly to agricultural producers upon receipt of the invoice, with a report from the Livestock Selection Service

Implementation

Bio-technical Faculty – Livestock Selection Service, person responsible Gojko Babović


February: Livestock Selection Service distributes application forms together with forms for livestock premiums (Measures 1.1.1.) and announces the measure through the media. March 1 – April 15: Agricultural producers apply and fill in the premium application forms. May – Sept 30.: The Service checks the situation in the field: min. 50% of applications received, regardless of the livestock specie transhumed. For cattle, the Service checks the Movement Notification through the electronic database. Oct. 01 – 30: development of reports, drawing up of lists of premium beneficiaries and forwarding them to the Ministry.

40


November 01 – Dec. Payment of premiums. Grants for renewal of pasturelands, reforestation, prevention of erosion and construction of watering sites shall be harmonized with the World Bank or GEF procedures, as appropriate.



Financial plan


Premiums for transhumance – 23,000 livestock units x 15 €

345,000

Support for pasture renewal, reforestation, erosion prevention, watering site construcion from the MIDAS – GEF project

100,000

Total 445,000

41

2. RURAL DEVELOPMENT MEASURES: 2.3. Axis 3: Measures for improving the quality of life and diversification of economic activities in rural areas

2.3.1 DIVERSIFICATION OF ECONOMIC ACTIVITIES IN RURAL AREAS


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Most of the rural population has very few income sources other than agriculture. In many areas, agricultural development has limited possibilities and on the other hand, there is a large number of unemployed or partially employed people who are seeking out alternative employment. Thus, the development of other economic (non-agricultural) activities in agricultural holdings and in forestry, as well as the development of different types of activities and services that are not closely connected with agriculture, could bear significant importance. Generally speaking, there is a great potential in tourism that is just partly utilised in rural areas. Support to additional employment opportunities could halt the trend of depopulation and migration from rural villages in some areas. The diversification of activities in holdings is necessary for employment in and sustainable development of rural areas and it can be used to contribute to better balancing of regional development in economic and social terms.

Objectives

improve life conditions and quality of life in rural areas,

increase income in agricultural holdings,

increase employment in rural areas,

halt depopulation,

utilisation of potential in tourism.

Measure description


Support is given to holders and members of agricultural holdings and other rural households initiating non-agricultural activities. Investments creating the opportunities for job creation in non-agricultural sector or those that modernise the existing non-agricultural activities are supported, which include the following:

direct sale of domestic products at the holdings, offering accommodation and other rural tourism forms, social services,

domestic handicrafts (eg. production of local products made of wool, wood, ceramic, leather),

trade in agricultural and other products,

other activities of importance to economic development in rural areas. Support takes the shape of co-financing of projects with complete or partial solutions. Reconstruction of existing and building of new facilities is supported, as well as supply of the equipment needed, and covering of costs of project preparation, promotions and marketing efforts. The application for support should include a plan with activities and results, with elements of technical and economic specification of the project. The support amounts to a maximum of 30% of the total value of the project. The maximum amount of support per project is 4000€.

Beneficiaries Holders or members of family agricultural holdings. Entrepreneurs, co-operatives and other businesses starting business activity in rural areas.

Payment method

Upon the invoice and report received.

Implementation

Ministry of Agriculture in co-operation with donors.


Based on applications received or on the competition ‗‘A JOB FOR YOU‘‘ or under a donor project. Support is provided based on evidence on the investment made and a field report from an authorised service.


Ministry, person responsible Radana Damjanović Agricultural Inspectorate

Financial plan


Total 60,000

42

2. RURAL DEVELOPMENT MEASURES: 2.3. Axis 3: Measures for improving the quality of life and diversification of economic activities in rural areas

2.3.2 REVITALISATION AND DEVELOPMENT OF RURAL AREAS AND CONSTRUCTION OF

RURAL INFRASTRUCTURE


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Poor rural infrastructure (local roads, water and, in some regions, electricity supply) is characteristic of many rural areas in Montenegro, especially in remote, mountainous areas. This condition has a negative effect on economic and social status of rural areas and contributes to the depopulation of rural areas. Halting this trend and accomplishing the sustainable development of rural areas is one of the most important challenges in Montenegro‘s overall development. The rehabilitation and development of villages are not possible without the abundantl support from budgetary funds.

Objectives improving living conditions and quality of life in rural areas,

establishing conditions for developing agriculture and for diversifying economic activities on both agricultural holdings and in rural areas in general.

Measure description


Support is given for:

building local roads (to some specific or a group of holdings, access to summer mountain pastures),

building water supply facilities in rural areas,

building new and reconstruction of existing facilities that are of joint importance for local communities (schools, health centres, veterinary surgeries, culture centres, religious buildings, electricity and telephone network, livestock and green markets, etc.),

solving local environmental protection issues,

organising tourism and other events, projects of maintenance and use of natural and cultural heritage that contribute to village development.

Support takes the shape of co-financing of projects. The application for support should include a project description, with anticipated results and specification of costs with elements of technical specification and overview of the applicant‘s share in covering the costs. Under this type of support, the funds for co-financing the project of machinery rings in the northern region of Montenegro will be provided, which are funded by the EU IPA program.

Beneficiaries Villages, parts and groups of villages, local communities, agricultural holdings and businesses in rural areas.

Payment method

Upon receipt of the invoice and contract on construction works, signed by local community or local self-governance, the Public Works Directorate or the Ministry; upon receipt of an invoice with a receipt for the commodities; upon receipt of an application.

Implementation

Ministry in co-operation with applicants and donors.


Measure is implemented based on applications from potential beneficiaries. Project selection is done based on objective criteria.


Ministry, person responsible Vojin Lješević

Financial plan


Participation in construction of roads, macadamizing and clearing, and the project of machinery rings co-financing.

450,000

Participation in construction of rainwater collecting tanks – bistijerne, water capture, reservoirs, reconstruction of existing bistijerne, supply of pipes of various profiles and construction of wells, electrification of mountain summer pastures.

80,000

Participation in construction of other infrastructure facilities in rural areas (bridges, emergency interventions on watercourses, etc.)

40,000

Support to activities of elementary schools that have a small number of pupils.

50,000

Total 620,000

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3. SUPPORT TO GENERAL SERVICES IN AGRICULTURE

3.1 EDUCATION, RESEARCH, DEVELOPMENT AND ANALYSES


on

There is an increasing need for having a modern concept of sustainable development of agriculture and rural areas based on knowledge. It implies strengthening of education components, research focused on solving development challenges and issues, as well as development of many analyses that are a basis for defining and implementing agricultural policy and evaluating its effects. Reforms and harmonisation with the EU Common Agricultural Policy (CAP) increasingly impose the need to develop a strong institutional support that cannot be provided without strengthening both the human resources and research and developmental functions. Montenegro shows deficits in the scientific and development sector that should support, to a far larger extent, the development of agriculture and implementation of a CAP-compatible policy, particularly as regards rural development. Deficit in economic analyses and the establishing of efficient monitoring for implementation of agricultural policy is evident. For that reason, support to education for occupations in great demand in agriculture as well as support to targeted research and development projects should be continued. Particular attention will be paid to development of economic analyses in agriculture as well as scientific and developmental support to the Strategy implementation.

Objectives

development of agriculture, based on knowledge,

strengthening institutional support for development of sustainable agriculture,

faster implementation of reforms and accession to the EU,

strengthening of human resources for faster implementation of new technologies and innovation in agriculture.

Measure description


The support is directed to:

improving the training conditions in existing secondary schools of agriculture and the Faculty of Agriculture, providing scholarships for education in the country and abroad for occupations in great demand and support to activities of regional offices, such as the Agro-business Info Centre in Zabljak,

strengthening scientific, research and development work directly applicable in agriculture, for the purpose of Strategy implementation,

development of economic analyses for the needs of agricultural policy (planning measures and evaluating the effects of their implementation).

For improving the training conditions, the support will be given on the basis of applications made by the schools, which have to include the project description and justification. Support is provided to investments into buildings, equipment and mechanisation needed for practical training related to agriculture and rural development. Support to scientific and research work is given to projects within the framework of the topics required by the Ministry, which support the Strategy implementation. The applications for research projects have to include programmes proving that the research proposed would have positive effects on development or on acceleration of the EU integration process. Applications for the projects may be submitted by teams of national and/or foreign experts. The Ministry can participate in co-financing of projects together with other governmental institutions. Development of economic analyses in agriculture sector, evaluation of projects and agricultural policy measures, development of annual reports are all done at the request of the Ministry of Agriculture. Under this measure, all other ad hoc measures and activities (interim committees, expertise, etc.) of the Ministry can be financed or co-financed.

Beneficiaries Educational and research institutions and organisations, regional offices, expert teams or individuals, students receiving education for occupations in great demand.

Payment method

Based on applications, upon receipt of an invoice for the work contracted and done, and report.

Implementation

Ministry, in co-operation with the University of Montenegro, other institutions and experts hired.


The measure is implemented on the basis of annual applications from potential beneficiaries and on decisions of the Ministry. Selection of the projects is done on the basis of objective criteria.


Ministry, person responsible Branimir Vujačić


improving the conditions for secondary and high education, 30,000

44

Financial plan

providing scholarships for education for occupations in grate demand in the country and abroad, work of regional offices

supporting scientific, research and developmental activities directly applicable in agriculture, for the purpose of Strategy implementation

25,000

Economic analyses for the needs of agricultural policy 20,000

Drafting of laws and bylaws 25,000

Agricultural-marketing information system 10,000

Expert hiring 20,000

Total 130,000

45


3.2 LIVESTOCK BREEDING IMPROVEMENT PROGRAMME


on

The livestock sector is a dominant branch of agriculture in Montenegro and most rural households are engaged in it. Depending on the livestock specie, the level of promoting genetic potential and improving breed structure vary. Increasingly strong competition requires high levels of production per unit—i.e., per breeding animal—and this cannot be achieved without systematic work in consistent implementation of breeding-selection programmes for certain species and breeds of livestock. In the process of development of livestock farming, Montenegro has been introducing international principles, and in particular the rules of the International Committee for Animal Recording (ICAR). ICAR requires, in addition to a functional livestock professional service, providing of quality semen for the artificial insemination of cows or, where artificial insemination is not practised, the use of quality breeding bulls. Bearing in mind the characteristics of Montenegrin livestock farming (population, level of development of some sectors, previous work on improvements, etc.), it cannot be done without support from the budget.

Objectives

improving competitiveness in livestock production by improving the genetic potential of breeding animals

introduction and implementation of international standards in livestock breeding improvement programmes

Measure description


a) Supply of semen for artificial insemination (AI) of cows is supported, provided that all the conditions regarding its quality have been met, as set by the tender called.

b) In remote rural areas, where AI cannot be organised, the use of high-quality bulls for natural mating is supported, provided that the bulls are selected and licensed in accordance with legal procedures.

c) Exhibitions of breeding animals are supported, that are defined clearly, in advance. - Supply of semen for AI is supported in entirety, and licensed bulls up to 120 € per head. In case the number of selected and licensed bulls is larger than planned, the amount per bull will be reduced proportionally. Support can also be provided to use of breeding males of other animals (stallions, rams, bucks, boars). The programme provides for training of farmers in order to develop the knowledge in this field. Note: the component b of the financial plan that follows (licensed breeding animals) refers to premiums to be paid based on rights acquired in 2009, according to the line 3.2. of Agro-budget 2009.

Beneficiaries Agricultural holdings involved in implementation of breeding-selection programmes in livestock breeding.

Payment method

Payment by components: a) payment to the selected semen supplier according to the contract signed; b) cash payments through banks to agricultural producers, based on lists made by the Livestock Selection Service; c) upon receipt of a pro-forma invoice from organiser of the exhibition

Implementation

Bio-technical Faculty – Livestock Selection Service person responsible Gojko Babović

Implementation

procedure Annual Work Programme of the Livestock Selection Service


Ministry, person responsible Blažo Rabrenović Agricultural Inspectorate

Financial

plan


a Semen for artificial insemination of cows (56,000) 130,000

b) Licensed breeding animals - premiums for licensed bulls 395 head x 120€ = 47,400 € - premiums for licensed stallions 342 head x 120€ = 41,040 €

88,440

c) Regional livestock exhibition (Nikšić, Pljevlja) and horse exhibition in Žabljak and farmers education

27,000

Total 245,440

Note: In case the amount of money spent for supply of semen following the tender called is lower than that planned, the balance would be spent for providing additional equipment to veterinary surgeries engaged in artificial insemination of cows, in line with the procedure to be determined in due course.

46


3.3 PROGRAMME OF PROFESSIONAL AND EXTENSION SERVICES FOR LIVESTOCK

PRODUCTION


on

In 2000, Montenegro launched the livestock improvement programme on a new platform and for that purpose, the Livestock Selection Service was established as a part of the Biotechnical Institute (now Faculty). Despite obvious results achieved in improving the quality of breeding animals in cattle farming in recent years, the average production of milk and meat is still very low. However, per-cow milk production on the best farms that are included in regular milk recording does not lag behind countries with developed cattle breeding; however, these farms constitute a very small part of the total population. For that reason, the work on improving the cattle population through inclusion of more animals into official control, intensification of activities in upgrading the genetic potential of sheep and goats and other livestock species needs to be continued. At the same time, the Service is providing an increasing number of extension services in livestock production. Modern development concept requires more from the Service in terms of providing various services to agricultural producers. One of serious challenges for the Service in future will be to increase the capacity and train the farmers to apply for direct support and for complying with many EU standards related to environmental protection and food safety, animal health protection and welfare (cross-compliance). In addition, assistance and support to agricultural producers and producers‘ organisations in preparation and applying the projects for IPARD support would be an important part of the Service‘s work.

Objectives

improvement of competitiveness in livestock production, by improving the genetic potential of breeding animals,

strengthening of institutional support for sustainable agriculture development,

introduction and implementation of international standards in programmes for improving livestock,


Measure description


Within the Biotechnical Faculty, support is provided to the work of the Livestock Selection Service related to implementation of breeding and selection programmes in livestock farming and to providing of many services to agricultural producers. The condition for support is annual work programme with a detailed description of the scope of measures, time schedule, financial aspects and the anticipated effects. The results are verified by the detailed annual report. For further strengthening of the Service, supply of technical facilities (vehicles and personal computers) is necessary in order to increase the capacities for implementation of the activities, as well as hiring of a consultant who would assist the development of the Code of Good Agriculture Practices

Beneficiaries Bio-technical Faculty - Livestock Selection Service

Payment method

Upon receipt of the invoice for the Service‘s activities, together with the current report.

Implementation

Bio-technical Faculty - Livestock Selection Service, person responsible Milan Marković

Implementation

procedure

This measure is implemented based on the Annual Work Programme of the Livestock Selection Service. The support to strengthening of the Service under the project MIDAS will be harmonized with the World Bank procedures.


Ministry, person responsible Vukica Perović (for component 1) and Branko Bulatović (for component 2)

Financial

plan


1. Selection and extension services program in livestock farming (according to the Service‘s Work Programme for 2010) 309,007

2. Strengthening of the Livestock Selection Service under the MIDAS Project (technical assistance and training, equipment) – World Bank

322,769

Total 631,776

47


3.4 PROGRAMME OF PROFESSIONAL SERVICES FOR PLANT PRODUCTION


on

Plant production in Montenegro is characterised by numerous distinctions and structural deficiencies that could be solved through support of certain phases, and bring this form of agricultural production to a higher level of efficiency through providing preconditions for implementation of international standards. Furthermore, full implementation of the Law on Seed of Agricultural Plants and the Law on Planting Material, which have, to a large extent been harmonised with EU regulations, lay down implementation of many measures in order to achieve higher standards of quality in nursery production as well as for modernisation of the existing variety structure.

Objectives

strengthening institutional support for the development of sustainable agriculture,

introduction and implementation of international standards in seed and nursery production,

modernisation of the variety structure.

Measure description


Support is provided to activities of authorised institutions engaged in: breeding, production of pre-basic seed and planting material, keeping specimens of seed and registered varieties, checking the genetic features and usage value of new domestic and foreign varieties in reference collections, maintaining and researching varieties in collections in line with the regulations. Under the programme, support can be provided to: breeding (generating) new varieties, production of pre-basic seed and planting material, setting up of a reference collection of varieties and rootstocks. The condition for support is the annual work programme with details on the scope of measures, time schedule, financial aspects and expected effects. Results are verified by a detailed annual report.

Beneficiaries Authorised institutions for production of pre-basic seed and planting material and setting up of a reference collection of varieties and rootstocks

Payment method

To giro-accounts of authorised institutions upon receipt of the report on implementation of the Work Programme and upon receipt of the invoice.

Implementation

Ministry in co-operation with the Bio-technical Faculty, person responsible Natalija Perović

Implementation

procedure

The measure is implemented based on the annual work programme, after submitting to the Ministry the report on the work done, together with the invoice.


Ministry, person responsible Marija Krstić

Financial

plan


Support to production of pre-basic seed and planting material 10,000

Setting up of a reference collection of varieties and rootstocks 50,000

Total 60,000

48


3.5 PROGRAMME OF EXTENSION SERVICES IN PLANT PRODUCTION


on

Montenegro has established the concept of extension services where these services are provided by the Extension Service in plant production that has an irreplaceable role in improving agriculture and introducing technological innovations. The modern development concept requires more from the Extension Service in Plant Production in terms of providing various services to agricultural producers. Providing advices in production is only one and not at all the only task. One of serious challenges for the Service in future will be to increase the capacity and train the farmers to apply for direct support and for complying with many EU standards related to environmental protection and food safety, animal health protection and welfare (cross-compliance). In addition, assistance and support to agricultural producers and producers‘ organisations in preparation and applying the projects for IPARD support would be an important part of the Service‘s work.

Objectives

increasing the competitiveness of agriculture through modernisation and introduction of technological innovation,

strengthening institutional support to development of agriculture,

support in implementation of reforms and EU association process,

improving the skills of producers,


Measure description


Under this measure, the financial support is provided to extension services provided by the Extension Service in Plant Production. A necessary precondition for support is the annual work programme, with a detailed description of the scope of measures, time schedule, the financial framework and the anticipated effects. The results are verified on the basis of a detailed annual report that is submitted to the Ministry. The Service should offer a wide variety of services to agricultural producers including the training for use of support in accordance with EU regulations. For further strengthening of the Service, supply of technical facilities (vehicles and personal computers) is necessary in order to increase the capacities for implementation of the activities, as well as hiring of a consultant who would assist the development of the Code of Good Agriculture Practices

Beneficiaries Bio-technical Faculty – Extension Service in Plant Production

Payment method

Upon receipt of the invoice for the Service‘s work, together with the report

Implementation

Bio-technical Faculty - Extension Service in Plant Production, person responsible Vukota Stanišić

Implementation

procedure

The measure is implemented based on the Annual Work Programme of the Extension Service in Plant Production The support to strengthening of the Service under the project MIDAS will be harmonized with the World Bank procedures.


Ministry, person responsible Vukica Perović (for component 1) and Branko Bulatović (for component 2)

Financial plan


1. Programme of Work for extension services in plant production (according to the Service’s Work Programme for 2010)

300,008

2. Strengthening of Extension services in plant production under the MIDAS project (technical assistance, training, equipment) – World Bank

322,767

Total 622,775

49


3.6 PROGRAMME OF PRODUCT QUALITY CONTROL MEASURES


on

Montenegrin agriculture, although of small volume, offers a very wide range of products to the market. Consumers‘ demands are growing, and according to the laws in force, all products marketed have to be under appropriate forms of supervision and quality control. Additional requirements are set by the process of harmonisation with the EU legislation. To date, Montenegro has been supporting the process of strengthening the institutions engaged in quality control, primarily by founding and equipping new and existing laboratories and through different kinds of training and professional qualifications. Since the process of harmonisation of national legislation with the EU legislation is very demanding, support to establishing and operation of laboratories for quality control, in accordance with law, needs to be continued and accelerated.

Objectives

securing a stable supply of safe food, acceptable in terms of quality and price,

strengthening institutional support for sustainable agriculture development,

faster implementation of reforms and EU association,

strengthening human resources for faster implementation of new technologies and innovation in agriculture,

strengthening competitiveness of food producers.

Measure description


The measure applies to support to regular control and improvement of quality of agricultural products, primarily through equipping and operation of quality control laboratories:

Dairy Laboratory, and

Laboratory for testing the quality of strong alcoholic drinks A necessary precondition for support is the annual work programme of the laboratories, with a detailed description of the scope of measures, time schedule, the financial aspects and the anticipated effects. The results are verified on the basis of a detailed annual report.

Beneficiaries Bio-technical Faculty: Dairy Laboratory and Laboratory for testing the quality of strong alcoholic drinks

Payment method

Upon receipt of the invoice for activities of the Dairy Laboratory and the report, or of approval for providing additional equipment to the Laboratory for testing the quality of strong alcoholic drinks.

Implementation

Bio-technical Faculty, persons responsible: Slavko Mirecki and Radmila Pajović


The measure is implemented based on the Annual Work Programme of the Dairy Laboratory approved by the Ministry, and on the request from the Laboratory for alcoholic drinks, with a justification


Ministry, persons responsible: Lidija Rmuš (for component 1) and Radana Damjanović (for component 2)

Financial plan


1. Dairy Laboratory (co-financing of operational costs) 75,000

2. Laboratory for testing the quality of strong alcoholic drinks (co-financing)

15,000

Total 90,000

50


3.7 PROGRAMME OF PHYTO-SANITARY MEASURES

Reasons for implementatio

n

Phytosanitary field is an important part of overall food safety system. A set of laws has been enacted in phyto-sanitary field: the Law on Plant Health Protection, the Law on Seeds of Agricultural Plants, the Law on Planting Material, the Law on Plant Nutrition Products, the Law on Plant Protection products, the Law on Protection of Plant Varieties, the Law on Food Safety, the Law on Genetically Modified Organisms and the Law on Ratification of the International Convention on Plant Protection and Law of Ratification of the International Treaty on Plant Genetic Resources for Food and Agriculture

Objectives

establishing and functioning of the system for safe food production, particularly the food of plant origin at the level of primary production,

monitoring of residues of plant protection products, nitrates, plant nutrition products

determining the status with regard to harmful organisms, prevention of introduction and spreading of harmful organisms and eradication thereof,

production of healthy, proper and high-quality seeds and planting materialpreservation of plant genetic resources

Measure description


Support is provided to implementation of the Programme of Phyto-sanitary Measures in 2010, which includes a detailed overview of measures and the required amount of financial means for their implementation. The programme includes measures from following fields: food safety, plant protection products and plant nutrition products plant health protection, seed and planting material, plant genetic resources,technical and administrative support to program implementationMoreover, the programme provides for a compensation to agricultural producers for yields reduced or lost, in line with the legislation in force.

Beneficiaries Services authorised for implementation of measures, laboratories, plant keepers.

Payment method

Upon receipt of the invoice for the work done, partly an advanced payment; upon the report; To plant keepers, to the accounts, through banks

Implementation

Phyto-sanitary Directorate, person responsible Zorka Prljević


The measure is implemented based on the Work Programme of the Phyto-sanitary Directorate of Montenegro. In line with the Budget 2010 (classification item 41106 - Programme 2621). Results are verified based on a detailed annual report, submitted to the Ministry.


Ministry, person responsible Marija Krstić

Components:

Financial plan

1. Plant Health Protection Programme 133,940.44

1.1 Operational Programme of Monitoring of Quarantine Harmful Organisms

1.1.1 Monitoring of potato cystoid nematodes KCN

1.1.2 Monitoring - Bursaphelenchus xylophilus

1.1.3 Monitoring - Pepino mosaic virus

1.1.4 Monitoring - Potato spindle tuber viroid

1.1.5 Monitoring - Ralstonia solanacearum (Smith) Yabuuchi et al.

1.1.6 Monitoring - Clavibacter michigenensis

1.1.7 Monitoring - Potato Wart Disease

1.1.8 Monitoring - Phytophthora ramorum

1.1.9 Monitoring -Carnation leaf roll

1.1.10 Monitoring - San José Scale

1.1.11 Monitoring - Diabrotica virgifera La Conte

51

Financial plan

1.1.12 Monitoring - Dryocosmus kuriphilus Yumatsu

1.1.13 Monitoring - Rhynchophorus ferrugineus (Olivier)

1.1.14 Monitoring - Anoplophora chinensis (Forster)

1.1.15 Monitoring - Bemisia tabaci Gennadius

1.1.16 Post-control of potato seeds – viruses

1.1.17 Monitoring of certain quarantine viruses

1.2 Operational programme of special supervision over non-quarantine harmful organisms

1.2.1 Special supervision – Olive fly Bactrocera oleae Gmel

1.2.2 Special supervision - fruit fly Ceratitis capitata Wiedemann

1.2.3 Special supervision - Grape cicadae - phytopalsma vectors

1.2.4 Special supervision - Grape vine disease and their monitoring - ESKA etc.

1.2.5 Special supervision - Prevention of plant pest infestation

1.2.6 Special supervision - Invasive insect species in greenhouses

1.2.7 Special supervision – strawberry nematodes Aphelenchoides fragariae

1.2.8 Special superivison – Phytophtora infestans

1.2.9. Special supervision – phytoparastici nematodes in greenhouses Meliodogyne

1.2.10. Special supervision over certain olive diseases and monitoring thereof

1.3. Emergency phytosanitary measures and compensation of damage

2. Monitoring Programme for plant protection and nutrition products and food safety

30,015.00

2.1 Monitoring of pesticide residues in food of plant origin at the primary production level

2.2 Nitrate monitoring

2.3 Monitoring and post-registration control of plant health protection products

2.4 Program of monitoring plant protection products and residues in strawberry production

2.5 Plant origin food safety measures at the primary production level

3. Programme for seed and planting material, plant variety protection and plant genetic resources

36,000.00

3.1 Certification of seed material of agricultural plants: - expert works - health condition - viruses by programme 1.1.16 - KCN by programme 1.1.1 -other diseases -printer supply -seed production of wheat

3.2 Plant genetic resources programme

4. Technical and administrative support to the programme implementation

20,044.56

Total: 220,000.00

52


3.8 OPERATIONAL PROGRAMME FOR ANIMAL HEALTH PROTECTION AND

ESTABLISHING OF A MODERN FOOD SAFETY SYSTEM


on

Montenegro makes significant investments in food safety and in harmonisation of its legal and institutional frameworks with international standards. Bearing in mind that livestock production is the most important branch of agriculture, the importance of the veterinary service for the efficient functioning of the animal health protection system and safe production of animal products is increasing. Thus, it is necessary to continue providing support to implementation of measures of the Operational Programme of Animal Health Protection, as well as to other activities arising from implementation of veterinary and food safety laws.

Objectives

Establishing and operations of the system of safe production and trade in food of animal origin,

securing animal health protection and monitoring of epizootiological situation,

strengthening institutional support for faster implementation of EU standards related to animal health and production of animal products.

Measure description


Support is provided to full implementation of the Operational Programme of Animal Health Protection, which includes a detailed overview of measures and the required amount of financial means for its implementation. Diagnostic testing, immunoprophylactic, zoosanitary and biosafety measures for securing animal health protection, the monitoring of epizootiological situation, residue monitoring, monitoring of zoonoses and the plan of use of funds and conditions for implementation of measures laid down by the law are set by the Programme. The Programme also provides for compensation of the damage to agricultural producers for animals killed or slaughtered, for facilities and raw materials damaged, ruined or destroyed during implementation of the measures undertaken during control of infectious diseases, for diseases where such measures are laid down by the law. Under the MIDAS Project support will be provided to a series of investments for establishing of a modern food safety system in Montenegro, which complements the EU technical assistance under the IPA 2008 for food safety services development. Further development of the Veterinary Diagnostic Laboratory in compliance with international standards will be supported. In addition, further development of phyto-sanitary and veterinary border inspection posts (BIP) in the port of Bar and establishing of a system of safe disposal of by-products of animal origin will be supported. Preliminary checks and preparation for classification of food production/processing establishments will be carried out, as a precondition for targeted intervention for their improvement until reaching the EU hygiene standards. The project will finance the technical assistance for development of feasibility studies and business plans; laboratory equipment; IT and office equipment, logistic support and construction works.

Beneficiaries Veterinary surgeries, Veterinary Diagnostic Laboratory, agricultural households, Veterinary and Phyto-sanitary Directorates.

Payment method

To agricultural producers, through banks, after submitting the invoice and the report on the work done to the Veterinary Directorate, partly advance payments.

Implementation

Veterinary Directorate, person responsible Ivan Popović


The measure is implemented on the basis of the Operational Programme for Animal Health Protection under the Veterinary Directorate of Montenegro, in line with the Budget of Montenegro (classification item 41102 – programme 2011) The results are verified on the basis of an annual report that is submitted to the Ministry. Support to component B will be implemented from the project MIDAS, according to procedures of World Bank.


Ministry, person responsible Sunčica Boljević

Financial Plan

Components, according to the Operational Programme: Amount, €

Programme 1. Monitoring of epizootiological situation and diagnostics in case infectious diseases are suspected

80,215

Programme 2. Ensuring animal health protection in municipalities without organised health protection services

15,000

Programme 3. Control and eradication of tuberculosis in cattle 394,180

Programme 4. Control and eradication of enzootic bovine leucosis 175,450

Programme 5. Control and eradication of brucellosis in cattle, sheep 384,345

53

Financial Plan

and goats

Programme 6. Monitoring of bluetongue disease 7,400

Programme 7. Diagnostics of bee diseases 29,700

Programme 8. Prevention and control of classical swine fever 122,545

Programme 9. Prevention and control of rabies in dogs and cats, and depending on epizootiological situation, in other domestic animals as well

25,575

Programme 10. Prevention and control of echinococcosis 1,650

Programme 11. Prevention and control of anthrax 1,425

Programme 12. Prevention and control of Newcastle disease 19,500

Programme 13. Prevention of avian influenza 10,915

Programme 14. Identification and registration of cattle 130,700

Programme 15. Monitoring of residues 66,000

Programme 16. Monitoring zoonoses – salmonellosis 15,600

Programme 17. Monitoring zoonoses – listeria 13,800

Programme 18.Monitoring of bovine spongiform encephalopathy – BSE

6,000

Total 1,500,000

B) Components of MIDAS – establishing a modern food safety system

1. Further development of Veterinary Diagnostic Laboratory 239,913

2. Strengthening veterinary and phyto-sanitary border inspection posts, Port of Bar

113,528

3. Support to safe disposal of by-products of animal origin 43,072

4. Improvement of food processing establishments 10,455

Total: 406,967

Total A+B: 1,906,967

54

4. SOCIAL TRANSFERS TO RURAL POPULATION

4.1 OLD AGE ALLOWANCE PROGRAMME


on

There are many rural households in Montenegro whose members used to be engaged in agriculture as their main occupation, but because of specific features of the social policy, they were not able to exercise the right to a regular pension. Moreover, those households are still engaged in agriculture and thus keep alive many remote villages that are threatened by depopulation or even abandonment. With a special form of social policy – old-age allowance, the state supports holders of agricultural holdings.

Objectives fight against poverty in rural areas,

improving the quality of life in villages and providing adequate living conditions.

Measure description


Old-age allowance is provided to one spouse, in case he/she lives in rural areas and is engaged in agriculture and has no other social allowances. Men above the age of 65 and women above 60 are eligible for this allowance.

Beneficiaries Holders of agricultural holdings: men above 65 and women above 60 who have no other income and who are engaged in agriculture.

Payment method

Cash payments through the Post of Montenegro, on behalf and for the Ministry

Implementation

January - December 2010


a) Documents to be submitted for old-age allowance: application, certificate of title for agricultural land, issued on the name of one of the spouses, evidence of residence, birth certificate, certificate of marriage, death certificate (for deceased spouse), evidence that the applicant is single (for those who are single), a statement by the applicant, with a stamp from the court of law, stating that he/she receives no monetary income in the country or abroad. The only exception is allowance for care and assistance to a family member, which poses no obstacle to eligibility for old-age allowance. b) The documents stated above are presented by the applicant to the competent service for agriculture in the local self-governance he belongs to, which then reviews the documents submitted as well as checks the income such as pensions, veteran or disability allowance and social allowance for both spouses, makes a report on that and forwards, together with the documents to the Ministry. c) The person responsible in the Ministry reviews the documents received in the period January-September 2010 and makes decisions validity of which starts as of September of the current year; continuously controls compliance with eligibility criteria through communication with the Fund for Pension and Disability Insurance, its regional units, the Health Fund and the Social Care Centre, as well as with the competent services of the local governance. In case any irregularities are established, the beneficiary would no longer receive the allowance and the procedure for repayment of the financial means received is launched. Eligibility for old-age allowance stops when rights to some other allowance are acquired. Incomplete documentation is to be returned to the competent local governance officer for completion and additional checks.


Ministry, person responsible Dragana Pajović, senior advisor

Financial

plan


Funds for payment of old-age allowances 5965 beneficiaries, 40€ per beneficiary per month Distribution costs.

2,860,800

59,200

Total 2,920,000 €

55

5. TECHNICAL AND ADMINISTRATIVE SUPPORT TO PROGRAMME IMPLEMENTATION


on

The ongoing dynamic process of reforms in Montenegro‘s agriculture, including the fulfilment of numerous international obligations already undertaken, the implementation of NPI, the implementation of agricultural policy in accordance with the Strategy and measures that are defined by this programme, require, in addition to institutional support, also the significant financial support. Founding of institutions and introduction of novelties into everyday practice, which are preconditions for implementation of many measures of agricultural policy, impose the need for additional training of human resources, first of all through the practice and experiences of the EU Member States. There are numerous tasks in the field of harmonisation of legislation with the EU Acquis communautaire, particularly as regards proper implementation of new regulations. Many international projects involve additional financial obligations of the Ministry. International integration processes and implementation of reforms require co-operation with the widest circle of beneficiaries: farmers‘ associations and other organisation forms, social partners, local action groups, and others. Moreover, timely media presentation of a good quality is very important to the success of reforms. It contributes to raising democratic standards, especially in rural areas. Thus, the funds for these purposes need to be planned in the annual agro-budget.

Objectives

strengthening of institutional support for sustainable agriculture development,

faster and more efficient implementation of reforms and EU association,

introduction and implementation of international standards, strengthening of international co-operation and affirmation of Montenegro and its potential,

strengthening of human resources for faster implementation of new technologies and innovation in agriculture,

raising awareness of importance of agriculture and its development in accordance with the EU model,

providing the public regularly with information on agricultural policy measures and the progress achieved in the EU integration process

World Bank MIDAS Project implementation

Measure description


This multipurpose measure is focused on support to the following:

implementation of obligations from the EU integration process: the Stabilisation and Association Agreement (SAA), NPI and other obligations undertaken through permanent (Group for EU integration, Agriculture and Fishery) or interim working bodies and committees, as well as for additional costs of harmonising the legislation with the EU Acquis, etc.

Montenegro‘s membership in international organisations of relevance to agricultural development,

Implementation of international projects implemented in the agriculture sector,

Activities of advisory bodies provided for by new laws (Law on Agriculture, the Law on Food Safety, the Law on Genetically Modified Organisms, etc.),

strengthening of administrative and institutional capacities through additional training of human resources, support to creative staff members and the modernisation of existing and supply of new equipment,

public relations in implementation of agricultural policy and presentation of the EU association processes.

MIDAS project implementation in 2010 (establishing of a Rural Development Unit, IPARD Agency, register, support to Ministry's job systematization, project management)

Beneficiaries Professional – advisory bodies of the Ministry, ad hoc working groups and committees, experts and groups of experts, creative staff members, electronic and print media.

Payment method

Upon receipt of application, invoice and report.

Implementation

Ministry of Agriculture, Forestry and Water Management


The measure is implemented based on decisions of the Ministry. Support to investments under the MIDAS Project will be harmonized with the World Bank procedures


Ministry, person responsible Branimir Vujačić for components 1 to 8); Branko Bulatović (for component 9)

Financial Plan


1.EU integration: Implementation of SAA, NPI, operations of EU

56

Financial plan

Integration Groups Agriculture and Fishery) or interim working bodies and committees, costs of harmonisation of legislation with the EU Acquis.

55,000

2. Membership in international organisations (FAO, OIV, IOC, GFCM, SWG and other)

70,000

3. Operations and activities of advisory bodies as provided for by the new laws

40,000

4. Translation services 20,000

5. IT support 15.000

6. Building the administrative and institutional capacity: providing additional training to staff, support to creative staff members,

40,000

7. Public relations: implementation of agricultural policy and presentation of the EU association process.

30,000

8. other operational costs

25,000

9. Project MIDAS implementation:

Support to establishing of a Rural Development Unit

Support to establishing IPARD Agency

Support to setting up of registers

Support to Ministry's job systematization

Project management

581,278

Total 876,278

57

B – 1: SUPPORT TO DEVELOPMENT OF FISHERY SECTOR


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Fishery plays a very important role in economic development of coastal countries, such as Montenegro, which has valuable but underutilised resources in this sector. Many segments of the sector of marine fishery and mariculture is not strong enough to compete with more efficient partners from Europe who can supply the market at prices lower than those paid at the domestic market. Moreover, aquaculture, that is, trout farming, due to old nuclear stock, inefficient farming method with slow gain rate, could hardly stay competitive without significant cutting of production costs and modernisation of production. That is why building of an efficient and competitive sector needs to be continued through support to professional fishermen, fish and shellfish farmers in order to upgrade their vessels, farming conditions and marketing of their products.

Objectives

Increasing the competitiveness and efficiency of the marine fishery sector,

Improvement of professional fishing fleet,

Increasing the competitiveness and efficiency of the mariculture and aquaculture sector,

Improving the quality and health safety of fishery and mariculture products,

Measure description


Support to improvement of the professional fishing fleet relates to the co-financing professional fishers (whose main activity is fishing) for supply of equipment for ship modernisation in order to decrease the costs of repairing and maintenance as well as improvement in hygiene and quality of products, work conditions and safety on board. Maximum share of public funds is up to 40% of the equipment value, maximum up to 4,000€ per project. The support is available to professional fishers (entrepreneur/company) holders of commercial fishing permits, who are members of Professional fishers' association who have signed the Agreement on Cooperation with the Ministry. Support to improvement of competitiveness and efficiency of mariculture and aquaculture sectors relates to co-financing of fish and shellfish farmers for supply of equipment for automation of farming processes, supply of equipment for improving hygiene in terms of food safety and marketing of farm products. The maximum share of public funds is up to 40% of the equipment value, maximum up to 4,000€ per project. The support is available to registered fish farmers producing more than 10t and registered shellfish farmers producing more than 5t.

Beneficiaries Professional fishers (whose main activity is fishing), fish and shellfish farmers

Payment method

Upon receipt of the invoice and report of assistants from the Fishery Unit of the Ministry

Implementation

Ministry, person responsible Slavica Pavlović


The condition for utilisation of the funds for improvement of the professional fishing fleet is that the holders of the permit for commercial fishing submit their applications to the Ministry with the invoice on the equipment supplied, with evidence that the equipment was paid. All the bills and evidence of payments have to be issued on the name of the applicant. The condition for utilisation of the funds for improving the competitiveness and efficiency of mariculture and aquaculture sector is that the fish and shellfish farmers submit their applications to the Ministry with the invoice on the equipment supplied, with evidence that the equipment was paid, as well as the basic information on production capacity of the farm. All the invoices and evidence of payments have to be issued on the name of the applicant.


Ministry, person responsible Slavica Pavlović Agricultural Inspectorate

Financial plan


A. Fishing fleet improvement Co-financing of costs of supply of equipment for ship modernisation, improvement of product hygiene and quality, improvement of work conditions and safety on board

90,000

B. Mariculture and aquaculture development Co-financing of costs of supply of equipment for automation of farming process, equipment for hygiene improvement in terms of food safety and placing aquaculture products on the market

90,000

TOTAL 180,000

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B – 2: SUSTAINABLE MANAGEMENT AND PRESERVATION OF FISH STOCKS


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Fish resources should be exploited in accordance with sustainable economic, environmental and social development, which is achieved, inter alia, by proper and rational fishing and by applying the precautionary principle in implementation of measures of protection and preservation of living marine resources, while preserving the biodiversity. Fishery researches are necessary for filling in the gaps in understanding fishery, achieving goals of responsible management and for identifying new fishing opportunities. Fresh fishery waters in Montenegro with their capacity and pure and oxygen-rich water represent a large potential for fish farming, and trout in particular, and for development of sport-recreational fishing tourism. Surveys on fishery waters and development of fishery master plan are a platform for sustainable management of fishery resources and planning of fish repopulation with quality juvenile of the relevant water basin.

Objectives

Reliable estimate of available fish resources and other marine organisms (demersal, small pelagic fish, shellfish) with the capacity of determining the fishing quotas.

zones of fishery sea, safe in terms of health, for farming mariculture products

Reliable estimate of available fishery resources in fresh fishery waters, fishery master plan development,

Development of sport-recreational tourism,

Strengthening of activities of sport-recreational fishermen clubs in protection of fishery waters and resources.

Strengthening the professional fishermen and fish farmers‘ associations,

Maintenance and upgrading of the fishery information system

Measure description


Support is provided to the activities the Marine Biology Institute, the scientific institution in charge of marine fishery and mariculture, performing the annual monitoring of demersal, pelagic and coastal fishery resources in the Bay of Boka Kotorska. The laboratory of the Institute must enhance the control of health safety of sea water, i.e. to improve the capacities for performing monitoring and biomonitoring of sea water quality, and by doing so, it must fulfil the minimum standards laid down in EU regulations. To that end, the interior construction works will be done in order to adapt and reconstruct the Institute, all of them to be financed under the MIDAS Project. Support is provided to the work of the Faculty of Mathematics and Science – Biology Department, for development of the fishery master plan. Support to sport-recreational fishermen clubs is provided for supply of fish juvenile for repopulation, and as short-term support for better protection of fishery waters and organisation of recreational fishing events. The fishery information system established needs to be developed further and the central database maintained through basic, corrective and adaptive maintenance of the system functioning, In order to accomplish the fishery policy objectives, organisation of producers in fishery into producer organisations, co-operatives and other forms of organisation and management of the joint organisation of market in fish and fish products and farming products.

Beneficiaries Marine Biology Institute, Faculty of Mathematics and Science, recreational fishing clubs Associations of fishermen and farmers

Payment method

Upon receipt of the invoice and the report

Implementation

Marine Biology Institute, responsible person: Aleksandar Joksimović Ministry in co-operation with recreational fishing clubs Faculty of Mathematics and Science – Biology Department


Support to the Marine Biology Institute is provided based on reports on the performed resource monitoring and water quality monitoring, as well as in accordance with the World Bank procedures. Support to the Faculty of Mathematics and Science is provided based on the fishery master plan developed. Support to recreational fishing clubs is provided based on reports submitted and inspectors‘ reports on repopulation efforts made, and based on plans of protection of fishery waters. Support to maintenance and improvement of the fishery information system is provided in accordance with the Contract. Fishermen and fish farmers' associations are given support for their activities aimed at founding producers organizations or other organisation forms in accordance with the EU rules.

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Ministry, person responsible Slavica Pavlović Fishery inspectorate

Financial plan


A. Protection and sustainable utilization of sea fishery

monitoring of demersal and pelagic resources

monitoring of coastal fishery

monitoring and biomonitoring of mariculture water quality

improvement of the Marine Biology Institute capacities for performing monitoring and biomonitoring of mariculture water quality (MIDAS project funds)

maintenance and development of fishery information system

176,364 15,000 5,000

15,000

131,364 10,000

B. Protection and sustainable utilisation of freshwater fishery

revision of fishery master plan for Niksic region waters

participation in repopulation of fishery waters

improvement of fishery waters protection

40,000 8,000

25,000 7,000

C. Strengthening the Professional fishermen and fish farmers' Associations

7,000

TOTAL 223,364

60

B-3: SUSTAINABLE MARINE FISHERY MANAGEMENT, IPA 2009


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The potential role of fishery is important for Montenegro since the objective is to achieve the full benefit from sustainable exploitation of the country's renewable resources, as well as the environmental preservation and guaranteeing of the effective and efficient exploitation of means and human resources available. Although the relative importance of the fishery sector is currently limited when compared to other sectors of the economy, there is a large potential for it and the sector value is to be measured rather by the possibility to successfully implement a well designed programme than by its current situation. In order to achieve these goals, it is necessary to strengthen the administrative and research capacities that will efficiently manage the living marine resources in accordance with the rules of the EU Common Fisheries Policy (CFP), with full participation of all the stakeholders.

Objectives

establishing and implementation of the principles of responsible fishery taking in account all the important aspects: biological, environmental, technological, economic and social;

improvement of the administrative capacities of the Fishery Unit in the Ministry and establishing of the Fishery Directorate;

improving the capacities and equipping the fishery inspectorate for efficient implementation of monitoring, control and supervision of fishing efforts;

development of professional capacity and equipping of the Marine Biology Institute for a more comprehensive estimate of living marine resources;

complete and efficient involvement of stakeholders in decision making and development of regulations in the fishery field

Measure description


The project will strengthen the activities in the fishery sector, initiated under the EU CARDS Project »Support to improvement of the fishery sector of Serbia and Montenegro« in order have the resource management implemented in accordance with the EU acquis communautaire of the Common Fisheries Policy (CFP). The project will be implemented through the following contracts:

Strengthening the administrative capacities of the Fishery Unit in the Ministry (hiring expert support for work with the Ministry‘s staff in order to improve their capacity for implementation of management plans, structural support measures as well as for establishing of the Fishery Directorate) ;

Supply of equipment for the fishery inspectorate and the Marine Biology Institute: hiring experts and delivery of training for inspectors on effective monitoring, supervision and control of fishing activities; hiring experts and delivery of training for researchers in the Institute on resource estimations and defining the research programme;

Reconstruction and equipping of 3 offices for marine fishery inspectors as well as renovating and equipping of the laboratory in the Marine Biology Institute for living marine resources estimate.

Beneficiaries Fishery Unit within the Ministry, fishery inspectorate, Marine Biology Institute, marine fishery sector stakeholders

Payment method

Observing the procedures of the EU Delegation to Montenegro

Implementation

EU Delegation to Montenegro

Implementation

procedure

In accordance with the procedures of the EU Delegation to Montenegro


Ministry, responsible person: Slavica Pavlović

Financial plan


TOTAL 720,000