The consequences of enlargement for EU agriculture : final study.
Date: 2018-02-16
Institutions: Directorate-General for Parliamentary Research Services
Subjects: EU agricultural market, agricultural labour force, agricultural production, common agricultural policy, ecological balance, economic analysis, enlargement of the Union, environmental protection, harmonisation of standards, land use, rural development

DIRECTORATE GENERAL FOR RESEARCH
Directorate A
Division for Industry, Research, Energy and STOA
STOA
Scientific and Technological Options Assessment

THE CONSEQUENCES OF
ENLARGEMENT FOR
EU AGRICULTURE

Final Study

Working document for the STOA Panel

Luxembourg, October 2001

PE 303.126/ Fin. St.

Directorate General for Research

 EN

 EN

QA-48-02-432-EN-N

Cataloguing data:

Title:

THE  CONSEQUENCES  OF  ENLARGEMENT  FOR  EU
AGRICULTURE

Workplan Ref.:

EP/IV/A/STOA/2000/10/01

Publisher:

European Parliament

Directorate General for Research
Directorate A
The STOA Programme

Author:

Dr. Dimitris PAPAIOANNOU, Integrated Environmental

Management, Athens, Greece

Project Manager
and Editor:

Theo KARAPIPERIS and Anthony COMFORT,
STOA, DG IV

Date:

October 2001

PE number:

PE 303.126 / Fin.Study

This document is a working Document for the 'STOA Panel'. It is not an official publication of
STOA.
This document does not necessarily represent the views of the European Parliament

“The Consequences of Enlargement for EU Agriculture”
EP/IV/A/STOA/2000/10/01

PREFACE- ACKNOWLEDGEMENT

This  research  project  was  carried  out  on  the  basis  of  a  contract  between  the  European  Parliament,  Directorate
General for Research and Integrated Environmental Management Ltd (IEM  ) situated in Athens, Greece, in order to
supply  services  to  the  Scientific  and  Technological  Options  Assessment  Programme  (STOA)  of  the  European
Parliament.

The purpose of the study was to review and evaluate the consequences of Enlargement for EU Agriculture in order to
assist the committee on Agriculture and Rural Development of the European Parliament. The study has examined the
effects of enlargement on Agriculture both in existing EU-countries and in those being in the process of acceding to the
EU. The effects examined are environmental, ecological, economic and social ones, especially overproduction, legal and
technological adaptation, employment and social cohesion, countryside conservation, soil and water protection.

The  main  conclusion  is  that  although  prospects  are  uncertain  the  economic  accession  costs  for  the  existing  EU-
Countries can be more or less compensated by the benefits arising from new markets and from social, economic and
political stability of the enlarged Europe.

The study was carried out by a group of experts who collected and evaluated all the available information on the subject.
The final report is accompanied by a bibliography on the topic and a policy options brief summarising possible action,
which might be taken by Members of the European Parliament.

On behalf of IEM we would like to thank the Director General Mr Enrico Cioffi and the supervisors on behalf of the STOA
Team Mr Theodoros Karapiperis and Mr Anthony Comfort, for entrusting IEM with this project. We would also like to
thank  the  MEP’s  Mr  Graefe  zu  Baringdorf,  Mr  Ruebig  and  Mr  Adam  as  well  as  Mr  Kalb  from  the  Committee  on
Agriculture for the valuable remarks and suggestions during the meetings.

Dr Dimitris Papaioannou
Chemical Engineer
Project Manager
IEM

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INDEX

Page No.

INTRODUCTION

DESCRIPTION OF THE STUDY

Part A – Options

Part B – Analysis

1.

Economic dimension

1.1 Land use
1.2 Distribution of resources
1.3 Overproduction
1.4 Energy balance
1.5 Transport
1.6 Harmonisation of technology standards

2.

Social dimension

2.1 Employment
2.2 Society

3.

Ecological dimension

3.1 Direct effects on the environment
3.2 Indirect effects on the environment

4.

Conclusions and outlook

4.1 Short term measures
4.2 Long term measures

REFERENCES

OFFICIAL STUDIES AND PROGRAMMES

ANNEX (PROSPECTS FOR AGRICULTURAL MARKETS

2001-2008)

iv

1

1

4

5

5
7
12
19
20
22

26

26
28

33

35
48

54

58
63

66

68

69

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“The Consequences of Enlargement for EU Agriculture”
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INTRODUCTION

The significant structural changes that have been occurring in rural Europe, especially since the beginning of the
last  decade,  involve  the  declining  role  of  agriculture,  the  enhancement  of  structural  development  policies,  the
diversification of rural labour markets and the increasing importance of environmental issues.  EU enlargement is
going to create both pressure and opportunities in existing EU Member States and accession counties.

PROJECT OBJECTIVES

This  project  is  intended  to  assist  the  Committee  on  Agriculture  and  Rural  Development  of  the  European
Parliament. The Committee stated the objectives of the project as follows:
“The  study  should  look  at  the  effects  of  enlargement  on  agriculture  both  in  existing  EU  countries  and  in  those
countries,  which  are  in  the  process  of  acceding  to  the  EU.  The  effects  of  the  resulting  changes  on  the
environment as well as the ecological, economic and social dimensions should be examined, together with the
repercussions for employment resulting from the modernisation of farming technology in the candidate countries.”

THE POLICY BACKGROUND

The process of enlargement has started with the end of the cold war and the resulting repercussions. The already
considerable volume of trade between ten Central and Eastern European countries (CEECs) and the European
Union was boosted with the signing of the Association Agreements (also known as Europe Agreements).
These  form  the  legal  framework  for  association  between  the  applicant  countries  and  the  European  Union  and
cover  their  political  and  economic  relations.  Their  objective  is  to  provide  an  appropriate  framework  for  the
applicant  countries'  gradual  integration  into  the  Community.  Europe  Agreements  have  been  concluded  with
Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia.
The  Association  Agreements'  objective  is  to  establish  a  free-trade  area  by  2002  liberalising  trade  in  industrial
products and providing a basis for economic cooperation in a large number of sectors.
An  Association  Agreement  has  been  in  place  between  Turkey  and  the  European  Union  since  1964.  The
cornerstone  of  this  Agreement  is  the  establishment  of  the  customs  union  in  three  stages.  The  EC-Turkey
Association Council decided to move on to the third stage in March 1995.
Cyprus  has  enjoyed  a  stable  relationship  with  the  European  Union  since  1973  on  the  basis  of  an  Association
Agreement,  which  provides  for  the  completion  of  a  two-stage  customs  union  over  a  ten-year  period.  The  final
stage of the customs union entered into force on 1 January 1998.
The Association Agreement between Malta and the European Community was signed on 5 December 1970 (and
came into force on 1 April 1971). The Agreement provided for the completion of a customs union in two stages
over  a  ten-year  period.  The  second  stage  never  started,  with  successive  governments  reluctant  to  pursue  the
actual implementation of a customs union.
The  Copenhagen  European  Council  not  only  approved  the  principle  of  the  EU's  enlargement  to  embrace  the
associated countries of Central and Eastern Europe, it also defined the criteria which applicants would have to
meet before they could join the Community.
These criteria concern:
·  

the  stability  of  institutions  guaranteeing  democracy,  the  rule  of  law,  human  rights  and  respect  for  and
protection of minorities (political criterion);
the existence of a functioning market economy as well as the capacity to cope with competitive pressure
and market forces within the European Union (economic criterion);
the ability to take on the obligations of membership including adherence to the aims of political, economic
and monetary union (criterion concerning adoption of the Community acquis).

·  

·  

The Dublin European Council welcomed the enhanced pre-accession strategy in December 1996. It covers all
applicant  countries  in  central  and  Eastern  Europe  and  makes  use  both  of  existing  instruments  (the  Europe
Agreements, the White Paper on the internal market and the Phare programme) and a new instrument forming
the keystone of the strategy, the accession partnerships.
The  accession  partnerships  launched  on  15  March  1998  provide  a  single  framework  for  their  three  basic
components:

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·  
·  
·  

Priority areas in which the Community acquis is to be adopted;
Programming the Union's financial assistance;
The  terms  applying  to  this  aid:  compliance  with  the  obligations  under  the  Europe  Agreements  and
progress in meeting the Copenhagen criteria.

the future of the main areas of Community policy;
the European Union's financial perspectives for the period 2000-2006;
the Union's enlargement.

The Commission has undertaken to submit a progress report to the European Council each year. The first was
published on 4 November 1998.
Agenda  2000,  which  was  published  as  a  three-part  policy  document  by  the  European  Commission  on  16  July
1997, looked at:
·  
·  
·  
Attached to it are the Commission's opinions, prepared on the basis of the Copenhagen accession criteria, on
membership  applications  from  Bulgaria,  the  Czech  Republic,  Estonia,  Hungary,  Latvia,  Lithuania,  Poland,
Romania, Slovakia and Slovenia. The Commission proposed that membership be extended to a first wave of five
countries  and  that  negotiations  be  launched  initially  with  the  Czech  Republic,  Estonia,  Hungary,  Poland  and
Slovenia.  The  negotiations  with  Cyprus  would  open  six  months  after  the  end  of  the  Intergovernmental
Conference. The situation in the other countries would be reviewed annually.
Agenda 2000 also established a financial framework for supporting the pre-accession process in the applicant
countries. EUR 21 billion will be provided in pre-accession aid to the Central and Eastern European countries for
the period 2000-2006. This will take three forms:
·  

the Phare programme: EUR 10.5 billion (EUR 1.5 billion a year). Since 1997 this has focused on the two
main priorities for adoption of the Community acquis: institution building in the applicant countries (30% of
the budget) and investment financing (70%) in areas where post-accession transitional periods are to be
avoided as far as possible;
aid for agricultural development totalling EUR 3.5 billion (EUR 500 million a year);
structural  aid  amounting  to  EUR  7  billion  (EUR  1  billion  a  year)  to  be  used  primarily  to  help  applicant
countries comply with Community infrastructure standards in the transport and environmental sectors. It
will also be used to familiarise these countries with structural project procedures.

·  
·  

The  Luxembourg  Council  approved  the  Commission's  analysis  in  Agenda  2000.  It  decided  that  negotiations
should  commence  with  five  Central  and  Eastern  European  countries  (the  Czech  Republic,  Estonia,  Hungary,
Poland and Slovenia) plus Cyprus, and with the other five countries of Central and Eastern Europe once they had
made the necessary progress under the accession partnerships.
The accession process started on 30 March 1998 with a meeting of the foreign ministers of the Member States,
the  countries  of  Central  and  Eastern  Europe  and  Cyprus.  The  negotiations  are  taking  place  in  six  bilateral
Intergovernmental Conferences with six-monthly ministerial meetings and monthly ambassadorial meetings but
negotiating  positions  will  not  be  finalised  until  a  detailed  evaluation  of  the  situation  in  each  applicant  country
("screening")  has  been  undertaken  in  relation  to  Community  legislation  and  the  second  and  third  pillars  of  the
Treaty on European Union.
The  Berlin  European  Council  (March  1999)  reached  an  overall  agreement  on  Agenda  2000.  In  the  matter  of
enlargement,  the  agreement  includes  the  creation  of  two  pre-accession  instruments:  a  structural  instrument
(ISPA ) and an agricultural instrument ( SAPARD ).
Council Regulation 1268/99  1 was part of the follow-up to the Commission's “Agenda 2000”  Communication and
the conclusions of the Luxembourg European Council, which provided for financial aid for the CEECs in the form
of structural and agricultural instruments.
 The objective of SAPARD was to establish a Community framework for supporting sustainable agricultural and
rural development in the CEECs during the pre-accession period, as well as to solve problems affecting the long-
term  adjustment  of  the  agricultural  sector  and  rural  areas,  and  to  help  implement  the  Community  acquis  in
matters of the common agricultural policy and related policies.

1  Council Regulation (EC) No 1268/99 of 21 June 1999 on Community support for pre-accession measures for agriculture and rural

development in the applicant countries of central and eastern Europe in the pre-accession period.

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Support for agriculture and rural development is focused on the priorities in this sector, and in particular on:
·  
·  
·  

Investment in agricultural holdings;
Improving the processing and marketing of agricultural and fishery products;
Improving  structures  for  quality,  veterinary  and  plant-health  controls  in  the  interests  of  food  quality  and
consumer protection;
Agricultural production methods designed to protect the environment and maintain the countryside;
Development and diversification of economic activities;
Setting up relief and management services for farmers;
Setting up producer groups;
Renovation and development of villages and the protection and conservation of the rural heritage;
Land improvement and reparcelling;
Establishment and updating of land registers ;
Improvement of vocational training;
Development and improvement of rural infrastructure;
Water resources management;
Forestry,  including  afforestation,  investments  in  forest  holdings  owned  by  private  forest  owners  and
processing and marketing of forestry products;
Technical  assistance  for  the  measures  covered  by  this  Regulation,  including  studies  to  assist  with  the
preparation and monitoring of the programme, information and publicity campaigns.

·  
·  
·  
·  
·  
·  
·  
·  
·  
·  
·  

·  

The  Berlin  European  Council  also  confirmed  the  renewed  Phare  programme  as  the  main  instrument  of
intervention,  geared  to  two  key  priorities  for  the  adoption  of  the  acquis,  with  30%  of  its  budget  earmarked  for
institution  building  (the  reinforcement  of  the  applicant  countries'  administration  and  institutions)  and  70%  for
investment financing. Further investment projects will be financed by the structural and agricultural pre-accession
instruments.
The  European  Council  announced  the  adoption  of  appropriate  measures  enabling  the  Intergovernmental
Conference  to  be  convened  in  February  2000  and  conclude  by  December  2000.  The  aim  of  the  conference
would be to adapt the institutions of the Union to the requirements of an enlarged Europe.
Finally  the  EU  Treaty  at  Nice2  changed  to  voting  rights,  majority  voting  rules,  and  the  organisation  of  the
Commission and other EU institutions. But over and above the changes agreed to the EU's internal procedures,
agreement  were  reached  on  a  specific  protocol  annexed  to  the  Treaty  of  Nice,  dealing  with  the  institutional
operations of an enlarged EU.  The key provisions relating to enlargement itself included:
1. 

The  new  voting  system  for  the  Council  of  Ministers  will  come  into  effect  on  1  January  2005,  with  new
member states getting the voting rights agreed for them as and when they join.
The European Parliament for the 2004-2009 term shall include representatives of the new member states
"resulting from the accession treaties signed by 1 January 2004 at the latest" similar rules will apply to the
Economic and Social Committee and the Committee of the Regions.
The  Commission  will  include  one  national  of  each  of  the  member  states  from  1  January  2005.  New
member states will get a Commissioner of their own for one term as soon as they join, even though they
will subsequently have to take part in the new rotation system agreed. That will come into effect when the
EU consists of 27 member states, at which point "the number of members of the Commission shall be less
than the number of member states". Commissioners will be chosen by rotation "based on the principle of
equality",  with  the  implementing  arrangements  and  the  precise  number  of  members  being  set  by  the
Council, acting unanimously. This amendment will come into effect as the first Commission following the
date of accession of the twenty seventh member state of the Union takes up its duties.

2. 

3. 

The  Nice  European  Council3  also  endorsed  the  General  Affairs  Council  conclusions  of  December  2000
concerning  the  strategy  proposed  by  the  Commission  which  among  other  things  reaffirmed  the  principle  of
differentiation, based on each candidate country's own merits, and allowance of scope for catching up was made.

2  C80, 10/3/2001

3  PRESIDENCY CONCLUSIONS, NICE EUROPEAN COUNCIL MEETING 7, 8 AND 9 DECEMBER 2000

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It is worthwhile mentioning that there was no  long a distinction between a first and a second wave of candidate
countries. The road map for the next 18 months would ease the way for further negotiations, bearing in mind that
those countries which are the bestprepared will continue to be able to progress more quickly.
It  was  also  stated  that  the  abovementioned  strategy,  together  with  the  completion  of  the  Intergovernmental
Conference on institutional reform, would place the Union, in accordance with the objective set by the European
Council in Helsinki, in a position to welcome those new Member States which are ready as from the end of 2002,
in the hope that they would be able to take part in the next European Parliament elections.
The  European  Council  in  Göteborg  on  15  and  16  June  confirmed  the  breakthroughs  in  the  negotiations  and
agreed on the framework for the successful completion of the enlargement, and took forward the debate on the
future of the Union. The Council concluded that candidate countries have made impressive progress in meeting
the accession criteria. More than two thirds of the negotiating chapters have been provisionally closed with some
candidate countries. All negotiating chapters would be opened before the end of June with some of the candidate
countries  that  started  negotiations  only  the  previous  year.  The  road  map  has  proved  to  be  an  ambitious  and
realistic framework for the negotiations. During the Belgian and Spanish Presidencies that follow the European
Union would pursue the road map with undiminished vigour.
This  new  momentum  must  be  matched  by  continued  progress  in  the  candidate  countries  in  transposing,
implementing and enforcing the acquis. They would have to pay particular attention to putting in place adequate
administrative  structures,  to  reforming  judicial  systems  and  the  civil  service,  as  well  as  to  the  situation  of
minorities. Special efforts will be devoted to assisting Bulgaria and Romania. Candidate countries will continue to
be  judged  solely  on  their  own  merits.  The  principle  of  differentiation  applies.  This  allows  the  best  prepared
countries  to  progress  more  quickly  in  the  negotiations,  and  other  candidates  to  catch  up.  Agreements  –  even
partial – reached during the course of the negotiations may not be considered final until an overall agreement has
been established.
Provided  that  progress  towards  meeting  the  accession  criteria  continues  at  an  unabated  pace,  the  road  map
should make it possible to complete negotiations by the end of 2002 for those candidate countries that are ready.
The  objective  is  that  they  should  participate  in  the  European  Parliament  elections  of  2004  as  members.  Good
progress has been made in implementing the pre-accession strategy for Turkey, including an enhanced political
dialogue.  The  presentation  by  Turkey  of  its  National  Programme  for  adopting  the  acquis  was  a  welcome
development. However, in a number of areas such as human rights, further progress was needed. Turkey was
urged  to  take  concrete  measures  to  implement  the  priorities  of  the  Accession  Partnership  which  is  the
cornerstone  of  the  pre-accession  strategy.  The  Council  was  invited  to  adopt  the  single  financial  framework  for
pre-accession assistance to Turkey by the end of the year at the latest. The economic programme agreed with
the IMF must be vigorously implemented to create the conditions for economic recovery.
Taking account of their particular situations, candidate countries were invited to translate the Union's economic,
social and environmental objectives into their national policies. The intention of candidate countries to adopt the
eEurope+ initiative was a successful example. Starting from Spring 2003, the Commission would begin covering
the candidate countries and their national policies in its annual synthesis report.

Final report by IEM Ltd. – September  2001

vii

DESCRIPTION OF THE STUDY

Part A – Policy Options

Standards and legislation:  Accession to the EU is conditional upon acceptance of the acquis communautaire
which,  when  compared  to  regulations  currently  prevailing  in  the  applicant  countries,  prescribes  rather  strict
standards  and  norms  related  to  such  issues  as  environmental  protection,  transport,  consumer  protection  and
safety  in  the  workplace.  This  means  that  the  CEECs  will  have  to  embark  upon  the  gargantuan  task  of
approximating  primary  and  secondary  legislation,  enforcing  new  policies,  and  enhancing  the  capacity  of
courts of justice to deal with legal conflicts concerning many aspects of EU law and competition policy. In certain
areas,  such  as  environment  protection,  consumer  protection,  veterinary  control  and  plant  health,  enforcing
legislation will require that laboratories be set up, investment be made in testing equipment and inspectors and
laboratory personnel be trained. The introduction and  application  of  veterinary  and  plant-health  rules  is  of
paramount  importance,  in  regard  to  inspection  and  control  with  a  view  to  protecting  the  European  Union's
external  borders.  The  adoption  of  the  aquis  will  also  provide  guidance  and  assistance  in  order  to  facilitate
institutiony – building in the CEECs.

Marketing,  credits  investments:  Accepting  EU  standards  means  that  farmers  are  either  confronted  with  an
obligation to invest  in  order  to  reach  the  standards  required  or  with  ever-increasing  production  costs  –  or  in
most cases both. This is a natural consequence of levelling the playing field for producers in the ‘old’  and ‘new’
EU countries. In the process, the price competitiveness of the eastern suppliers would doubtless deteriorate. A
crucial  issue  is  the  timing  of  the  adjustment  to  the  EU  standards.  The  longer  the  transitory  period,  the  less
concentrated the adjustment may have to be. Since functioning credit markets are often still missing it is of utmost
importance to improve these, possibly through the establishment of micro-loan schemes. The need is to improve
access to credit, particularly for small farmers and SMEs. Extension systems, input and equipment supply and
infrastructure  are  lacking  in  most  CEECs  and  need  to  be  established.  Vocational  schooling  must  also  be
improved. Education in farming has to be broadly based, giving foundations for crop and animal husbandry and
basic farm management. Measures in order to increase the efficiency of marketing channels and to improve
price and quality information must be taken. The marketing of agricultural production from family farms must
also be improved. On the basis of this, farm cash flow should increase and financial vulnerability should diminish.
Moreover, efforts still have to be made to meet consumer demands in terms of quality. Measures should be
taken also in order to facilitate and assist the restructuring of the agri-food industry. A considerable effort should
be made in order to bring food-processing plants (such as slaughterhouses) up to EU standards.  Classification
and registration schemes still have to be implemented.  Testing and diagnostic facilities have to be upgraded and
validated.

Land use and land markets:  In regard to the land-use issues a properly functioning land market is lacking in
many  cases,  partly  because  of  incomplete  entitlement  of  ownership  rights.  The  establishment  of  unequivocal
and clear land-ownership relations is essential. Property rights to land need to be clearly established through
entitlement of ownership rights so that farmers will have the confidence to make investments in land, facilities and
equipment.  In  the  future,  the  development  of  the  farming  structure  should  be  shaped  basically  by  the  market
relations and market tools, principally through  an efficiently functioning land market. This means minimising
the restrictions on land ownership and land use, as well as on ownership and lease rights. Legal restrictions for
the purchase of land by foreigners have to be lifted as well in order to increase foreign investment in the agro-
food sector. The transfer of ownership and lease rights should be simple and cheap. Privatisation programs must
also be completed. The greater the government intervention in the operation of the land market, the slower and
more costly the shaping of the new farming structure will be. The leasing of land will have a very important role
in shaping an efficient farming structure, and the conditions for leasing must be determined fundamentally by the
supply and demand relation.

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Overproduction  and  surpluses:  Output  of  agricultural  production  in  the  CEECs  is  stable  after  the  dramatic
decline of the 1990s, but in most CEECs is still below pre-transition levels. This does not mean that there is no
potential for overproduction in the CEECs, when further integration has been achieved in EU structures.  In this
regard  there  are  two  main  weak  points  in  the  Agenda  designed  for  the  CEECs.  First,  the  limited  reform  in  the
dairy sector and the non-reform for sugar leaves these regimes highly distortive, leaving the way open to a large
expansion  of  output  in  the  CEEC  if  quotas  are  lifted.  Secondly,  according  to  estimates  there  will  be  a  dairy
surplus of 1.7 million tonnes in the CEECs by 2007.  This is a result of the large gap in the level of protection
accorded to these products and to less protected commodities such as wheat and beef. A future weak point is the
potential use of export subsidies in the cereal sector to maintain cereal market prices above intervention prices. If
this  EU  policy,  as  pursued  in  the  EU  in  recent  years,  is  continued  and  extended  to  the  new  members,  it  will
generate additional incentives for grain production in the CEECs and expand net exports, especially for the more
highly protected types of cereals, i.e. coarse grains. According to estimates the forecast for the CEEC-10 cereals
surplus would be 10 million tonnes by 2007, coming on top of a EU-15 cereals surplus of 41 million tonnes for
the same year (Prospects for Agricultural Markets 2000-2007 ANNEX). A very important factor in the creation of
these surpluses is world market prices.
All the budget pressures, resulting from direct payments to the CEECs, could stimulate CAP reforms. Both limits
on  compensation  payments  over  time  (degressivity)  and  per  farm  (modulation)  could  be  returned  to  the  table.
However, at the same time, budget pressures may complicate efforts to reform sectors such as dairy and sugar
where  price  and  quota  cuts  may  not  be  politically  feasible  without  sufficient  budgets  to  compensate  farmers.
Some  alternative  policy  options  that  could  be  implemented  are  decoupled  income  payments,  income
stabilisation funds, risk management programmes and export credit programmes.  The  above  measures
may offer promising alternatives to the existing policies that create large market distortions.

Employment  and  Productivity: In  regard  to  employment  in  agriculture,  its  share  of  total  employment  in  CEECs  is
relatively high with the exception of the Czech and Slovak Republics. For Poland the figure is above 25 percent, for
Hungary and Slovenia above 10 percent. The effect of some of the outcomes of the liberalisation process, such as high
levels of unemployment in Poland and Hungary, inadequate safety nets and rising consumer prices in all the countries,
together with a rapid fall in agricultural profitability, have created big social and economic problems in large parts of the
population. In order to deal with this, measures to ensure that farm productivity is sustained or enhanced over the long-
term should be taken as well as measures in order to create alternative employment in rural areas.

Infrastructure  and  Know-how:  The  development  of  the  capacity  to  implement  and  apply  the  Common
Agricultural Policy (CAP), notably in terms of administrative structures and the basic management mechanisms
for supervising the agricultural markets and for implementing the structural and rural development measures is
essential  in  the  CEECs.    To  that  end  the  EU  Commission  and  the  existing  EU  member  states  could  provide
valuable  assistance  and  know-how  in  order  to  bring  the  CEECs  up  to  speed.  Strong  investment  in  rural
infrastructure  should  be  made  as  well.    More  specifically  roads,  transport,  telecommunications  and  water
provisions as well as waste disposal and treatment, have to be given priority. Further development of measures
must  be  undertaken  in  order  to  assist  less-favoured  areas  (LFAs).  Finally  partnership  institutions  that  would
represent private farmers’  economic interests against other poles of interest from agriculture must be established,
with a view to increasing agriculture’s negotiating capacity.

Social issues: In rural areas of the CEECs farm productivity must be sustained or enhanced over the long-term,
adverse impacts of natural phenomena on agriculture must be minimized and the net social benefit derived from
agriculture  maximized.  Such  farming  systems  could  improve  the  wellbeing  of  individual  farming  families  by
increasing overall productivity in the context of both private and social goals. They also need to be sufficiently
flexible to manage risks associated with the variability of climate, markets and legislative and policy measures. To
be able to design and to develop such farming systems, it is of paramount importance to have the appropriate
knowledge about the environment (natural, social, economic, and political) in which farmers operate in order to
assist them in the adoption of appropriate production and management practices.

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Environmental impacts: The main impacts of agriculture on sustainability and the environment in the CEECs are a) soil
acidification, degradation, salinization and erosion, b) biodiversity loss, c) the few remaining traditional farming systems
are threatened, d) intensity levels of fertilizers and pesticides have fallen to very low levels after the transition relative to
the  period  preceding  transition  leading  to  slowly  growing  nutrient  deficiency  in  many  soils,  on  the  positive  side,
environmental  degradation  from  the  excessive  application  of  fertilizers  and  pesticides  has  stopped  e)  degradation  of
waterways  due  to  improper  nutrient  management  systems  and  poor  storage  facilities  for  manure  and  other  harmful
emissions is still present, f) there is a potential danger that intensity levels will rise very quickly in some CEECs because
of  possible  access  to  new  markets  and  a  possible  increase  in  producer  prices.  In  combination  with  improper  farm
management  practices,  this  rise  in  intensity  levels  will  cause  environmental  degradation  (e.g.  eutrophication  of
waterways or increased ammonia emissions).  Most of these issues can be adequately dealt with the incorporation and
proper application of the acquis communautaire by the governments of the CEECs.

Environmental policy:  In  order  to  deal  with  the  environmental  effects  of  agriculture  in  the  CEECs    measures
should be taken in order to further extend the area that is cultivated under sustainable farming and to establish
practical  and  working  ecological  legislation  through  the  development  of  suitable  mechanisms  (for  specific
measures,  see  Annex  I).  Besides  preventive  measures,  a  more  effective  relationship  between  the  damage
caused  and  the  sanctions  imposed  should  be  found  for  the  realisation  of  more  effective  pollution  control.  The
environmental policy must be built into the institutional, structural and infrastructural changes that are going to be
implemented. In this respect, the role of ecological legislation is of great importance. The capacity for sustainable
and ecologically sound development can be increased by extending research, training, education and extension
activities.  Specific  measures,  which  are  specific  at  a  regional  level,  should  also  be  taken  in  order  to  maintain
traditional landscapes and natural values.

Generally: The costs and benefits of accession in the countries concerned in the field of agriculture cannot be precisely
calculated. Given the degree of uncertainty in all decisive issues relating to accession, this shortcoming was inevitable.
However,  it  can  generally  be  said  that  the  costs  that  EU-Countries  will  be  called  to  pay  can  be  in  some  extend
compensated  by  the  benefits  arising  from  new  markets  and  from  the  social,  economic  and  political  stability  of  the
enlarged Europe. Uncertainty also prevails as to the level of individual products. This uncertainty should bear a clear
message for applicant country negotiators and the EU alike.

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Part B - Analysis

The  publication  and  adoption  of  Agenda  2000,  which  reconciles  various  rural  development  approaches  and
incorporates recent development objectives such as the further reduction of institutional CAP prices, the further
introduction  of  direct  income  payments,  and  the  stronger  movement  from  the  CAP  to  wider  rural  development
policy,  is  expected  to  create  significant  further  structural  pressure  in  EU  rural  areas.  These  pressures  are  not
expected  to  affect  all  EU  rural  areas  in  an  equal  manner.    Rural  areas  in  Central  Europe,  which  have  higher
population densities, greater proximity to main markets, low dependence on farming and a diversified economic
base,  are  expected  to  face  a  smoother  adjustment  process,  as  their  economic  and  social  fabric  does  not
concentrate heavily on farming.
In  contrast,  rural  areas  of  the  “periphery”  including  accession  countries,  characterised  by  severe  remoteness,
depopulation, infrastructural inadequacies and high dependence on agriculture, are expected to face increasing
pressure for structural changes, the degree of which depends on their level of dependence on farming and the
nature of their socio-economic and physical constraints.  Agriculture in most of the accession countries is much
more  important  than  it  is  in  most  of  the  fifteen  member  states  of  the  EU.    For  example  the  agricultural  sector
represents  26.6%  of  Poland’s,  and  32.2%  of  Romania’s  GNP.  On  the  other  hand  accession  will  help  CEE
countries  in  their  long  way  to  development.    These  countries  will  have  the  opportunity  to  improve  their
comparative  advantages  (specialised  agricultural  holdings  and  livestock  units),  to  increase  their  GNP  and  per
capita income, and establish political stability.
Some argue that differences over agricultural policy are irrelevant insofar as enlargement of the EU is concerned
to  include  countries  of  Central  Europe.  They  assert  that  the  overwhelming  desire  of  the  Central  European
countries to achieve the economic and political protection that membership in the EU affords is so great that they
will accept whatever agricultural policies the EU demands for entry. This may be true, but it is not the end of the
story. The modification of the Common Agricultural Policy (CAP) to accommodate the addition of countries with
large  agricultural  sectors  and  many  farmers  is  a  certainty  that  has  already  begun  in  thought  if  not  in  action.
Furthermore, as the CAP is not a static policy and it will have to continue to be adjusted after the entry of the new
countries  in  Central  Europe,  and  –unless  the  EU  substantially  alters  its  decision-making  structure–  the  recent
entrants will also play a significant role in determining future policies.
Under the latest revision of the CAP, support is given to the farmers’  income and not to agricultural production.
This  is  done  in  order  to  meet  the  needs  of  international  demand  and  remove  the  market  distortions  that  were
created in the past.  The new CAP target will give incentives to the producers to earn most of their income from
the free market rather than from EU's interventions.  Accession countries will have to adapt to this new situation
and as a result their agricultural production will be made more competitive. The implementation of the CAP by the
accession  countries  will  create  the  need  for  restructuring  of  their  agricultural  sector,  insofar  as  most  of  their
agricultural production includes products that are already produced in large amounts in the E. U. (such as milk,
cereals, sugar, etc).  Also the prices of these products in accession countries are lower than those of the EU's
common market and as a result the CAP will stimulate overproduction.
EU enlargement could allow an EU-18 or EU-20 to become more competitive in world markets for beef, pork, and
coarse  grains  but  only  if  the  CEE  countries  can  successfully  adopt  all  EU  legislation  and  narrow  quality
differentials by 2002.  Implementation by the acceding countries of EU measures demanded by consumers and
environmentalists  may  also  restrict  their  imports  of  food  and  agricultural  goods.  Particular  attention  should  be
given  to  the  development  of  the  ability  to  implement  and  apply  the  Common  Agricultural  Policy  in  accession
countries, and in particular in regard to basic management mechanisms and the administrative structures needed
to  control  agricultural  markets  as  well  as  the  implementation  of  structural  and  rural  development  measures.
Finally the repercussions of the integration of the future EU member states on the agricultural sector of existing
member states must be given special attention in order to smooth out any problems that are going to be created.

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1. 

Economic dimension

1.1 

Land use

Land  use  is  influenced  by  several  economic,  demographic,  and  technological  factors  and  an  assortment  of
government policies. In a market economy land is allocated to the use with the highest return. As relative rents
change over time, land use would shift between uses. Technology has also impacted land use and regional land
use shifts, especially that of cropland. In the CEECs during the previous centrally planned system, large portions
of land were exclusively devoted to agricultural use. During the transitional period to a market economy, in most
CEECs  agricultural  land  is  changing  use,  mainly  because  farming  is  abandoned,  but  also  due  to  intensive
urbanization  and  construction  of  transport  infrastructure.      Enlargement  is  expected  to  act  as  a  catalyst  and
accelerate this process further as foreign investment in industrial production will create the need for portions of
agricultural land to be given for industrial and residential use as well as upgrading transport infrastructure.
Agricultural policy in the previous economic system in the CEECs considered the so-called socialist large-scale
enterprises,  cooperative  and  state  farms,  to  be  the  fundamental  pillars  of  agriculture.  With  the  exception  of
Poland, Croatia and Slovenia, these farms were dominant in both land use and output. Private production was
considered  to  be  a  temporary  phenomenon  which  was  allowed  but  not  supported.  Only  the  household  plots
belonging to the co-operative farm members were regarded as an integral part of the large-scale farming system.
In spite of this hostile environment, private agriculture provided a significant portion of agricultural output due to
the better utilisation of resources and benefits gained informally through their links with the large-scale farms.
Property  rights in the CEECs to the present day are still not completely settled and the need to de-collectivise
and to establish a real estate market and a land market is urgent. But this process takes time. It is difficult to move
from a system that did not have a real-estate market to one that does. The absence of a banking system up to
western standards is not helping the real estate market to function. Current and pending legislation in all countries
of  the  region  circumscribes  owners'  rights  in  the  important  areas  of  land  transfer,  land  utilisation,  and  size  of
holdings. Typical restrictions on land transfer in various countries vary from an outright ban on buying and selling
of land (indefinitely or during a long moratorium) to restrictive provisions which allow alienation only to residents in
the same village, to local farm enterprise, or through intermediation of the state. Even the right to lease land to
other farmers is still not universally accepted. Restrictions on land use typically include the obligation to farm the
land,  and  to  observe  sound  conservation  practices.  Failure  to  observe  this  rule  can  result  in  expropriation.
Restrictions on size of holdings are universal. The maximum size of private farms is limited to 20-30 hectares in
Bulgaria, 50 hectares in Latvia, and 100 hectares in Romania. Restrictions on the rights of owners are intended to
prevent  absentee  ownership  and  underutilisation  of  land  resources.  They  are  also  intended  to  prevent  new
owners  from  becoming  victims  or  beneficiaries  of  speculative  land  transactions.  The  restrictions  on  property
rights  reflect  fundamental  ambiguity  regarding  private  land  property,  even  where  private  ownership  is  legally
recognised. The restrictions on land ownership rights are among the most contested issues of agricultural reform.
On the eve of the transition it was generally believed that large collective farms would be promptly replaced by
more efficient family farms. This projection was, however, based on experiences from Western Europe, where the
collective form of production in agriculture is rare. The experience from the East so far indicates that a multiplicity
of  different  production  forms  will  exist  by  side.  The  production  forms  will  probably  include  small  farms,  family
farms, commercial farms, new cooperatives and limited liability companies. The development up to now indicates
that the mixture will most probably vary from country to country and be very different from the agrarian structure
in  the  present  members  of  the  EU.  This  circumstance  also  constitutes  a  problem  in  applying  the  CAP  to  the
CEECs. The agrarian reforms have currently being undertaken two important objectives – the rehabilitation of the
owners and economic efficiency. In general, in Eastern Europe the dual system of the new private agriculture –
i.e.  individual  agriculture  (peasant,  entrepreneurial)  or  associated  agriculture  (associations,  collective  farms,
owners'  cooperative  farms,  shareholder  enterprises)  –  has  two  main  reasons:  the  possession  of  economic
capital; and the possession of cultural capital (i.e. the aptitudes and competencies favourable for innovation).
The progress of de-collectivization varies in the CEECs, according to the adopted rate of privatisation. In Latvia,
1997  was  the  year  when  land  reform  was  going  to  be  concluded.  All  land  required  by  private  individuals  is
distributed  in  two  ways:  through  restitution  (the  major  part);  and  through  giving  into  use,  which  is  followed  by
privatization, in terms of land titles. As a result, former large-scale socialist types of farms are replaced by a large

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number of small agricultural units. According to statistical data, the average size of family farms is 19.7 hectares
(ha), and they occupy 52 percent of total agricultural land. Household plots and private subsidiary farms take up
32  percent.  Thus,  more  than  84  percent  of  agricultural  land  is  cultivated  by  families,  12  percent  by  private
companies and just under 4 percent by the state (mainly experimental farms and training farms for schools) and
local government (as leased plots to people living in towns and villages).
In Romania at the same time as the change in the political regime and the economic transition from a planned to
a  market  economy  were  under  way,  a  new  model  for  agriculture  was  proposed.  At  present  agricultural  lands
belong mostly to the private sector (84%) and to a lesser extend to the state (16%). The structure and use of the
agricultural  land  is:  63%  arable  land,  3.4%  orchard-vineyard  plantations,  1.8%  vineyards,  33.4%  natural
meadows (Statistical date 2000).  This structure has never recorded significant modifications in the 1989-1998
period, except the reduction of orchard surfaces by 24%.
In Hungary privatisation of the 1 200 collective farms is almost complete, but restructuring is still underway. Of the
120 state farms, the majority have been privatised, one third have been liquidated, and a quarter are still under
state ownership. In Slovenia, the situation is similar, over 90 percent of agricultural land is in private hands. Small
farms and low productivity in agriculture have forced a large number of farmers to seek additional income in non-
agricultural activities.  According to the latest available statistical data (SORS, 1996), slightly less than 43% of the
national  territory,  i.e.  780,000  ha,  is  characterized  as  agricultural  land4.    Only  a  third  of  this  land  is  used  for
cultivation.    Covering  just  under  75%  of  the  agricultural  land  use,  grassland  and  permanent  meadows
predominate strongly within the structure of agricultural land.  Forests cover over one half (56%) of the territory
and are a very important natural resource.  According to estimates, 10% of agricultural land has been lost in the
last  decade  alone,  mainly  because  farming  was  abandoned  but  also  due  to  intensive  urbanization  and
construction of transport infrastructure.
In  Estonia  a  large-scale  privatisation  process  was  carried  out  from  1993  until  1995.  From  1993  until  1995
agricultural and land reform were carried out via separate laws. Agricultural reform’s main method was the return
of  collectivized  property  to  former  owners  and  the  division  of  all  other  property  to  workers  according  to  the
number of years worked. Land reform’s principle approach was restitution to former owners and their heirs.  In
Lithuania at the same time, the establishment of private farms under the influence of a severe shortage of credit
resources  and  a  sharp  increase  in  main  input  prices  brought  farmers  under  a  harsh  cost-price  squeeze.  The
successful implementation of state agrarian policy depends, in this country also, to a great extent on the creation
of the appropriate legal environment. Improvement of the existing environment and formulation of a more flexible
legal system are, therefore being prepared. In June and July 2000, with a view to speeding up land reform, as
well as the development of the land market and the improvement of the land administration system, the Law on
Restitution of the Rights of Ownership of Citizens, as well as the Law on Land Reform, the Law on Land, and the
Law on Land Lease were amended.
In Bulgaria agricultural land amounts to 6,417 thousand ha, which represents 57.9% of the country’s total area.
Arable  land  represents  76.8%  of  the  country’s  total  agricultural  land.  Areas  under  perennial  crops  account  for
about 2% of total agricultural land while meadows, grasslands and pastures cover more than 12.6%.  The share
of state and municipal ownership has been gradually decreasing over the years to reach a bare 3.8% in 1998.
Private ownership of arable land surpasses 96.2%, with some 40.1% being cultivated by the new co-operatives.
As regards to grasslands and pastures, the share of public and state ownership is still predominant at 71.3%.  It is
estimated  that  land  plots  of  over  363,000  ha  are  not  being  cultivated.  In  Croatia  there  is  a  strong  tradition  of
private property and enterprise, although these were continuously suppressed under the former socialist system.
Nevertheless,  people  were  permitted  to  run  small  agricultural  businesses,  trade  outlets  and  shops.  These
enterprises now constitute a valuable core of entrepreneurship in Croatia's new economic structure. The previous
economic  system  emphasized  the  "self-management"  of  socially  owned  enterprises.  The  privatization  of  these
enterprises is a critical component of Croatia's economic transition.

4  However,  there  are  relative  large  discrepancies  of  the  data  with  the  results  of  the  agricultural  model  census,  carried  out  in  1997,

which reveals that a considerable proportion of this land is no longer in use.

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In  Poland  the  farm  size  is  small  and  changes  in  farm  structures  are  rather  slow,  but  farming  was  not
comprehensively collectivised in the past. Successive communist governments finally accepted the private farm
as  the  main  base  for  food  production  in  Poland.  Some  18%  of  land  was  in  State  hands.  While  most  of  this
agricultural land is still not sold by the state, most is now leased to private managers. In Czech Republic still 43%
of agricultural land is in hands of the newly formed cooperative farms. Although the average size has decreased
from over 2500 ha in the pre-transition period to around 1450 ha, these farms in general show a conservative and
reluctant attitude to further restructuring. The land market in the Czech Republic is not sufficiently developed. The
structure  of  agricultural  land  has  experienced  slight  changes.    While  the  area  of  arable  land,  hop  gardens,
vineyards and orchards has declined, the area of meadows and  pastures is growing.  Agricultural land in 1999
was 4,284,302 ha.  The area of unfarmed agricultural land amounted to 2.3% of which about half was arable land.
Summing  up,  it  can  be  said  that  the  transition  to  a  profitable  and  efficient  agricultural  structure  should  be
completed  as  quickly  as  possible.  The  establishment  of  unequivocal  and  clear  land-ownership  relations  is
essential.  In  the  future,  the  development  of  the  farming  structures  should  be  shaped  basically  by  the  market
relations and market tools and principally through an efficiently functioning land market. This means minimising
the  restrictions  on  land  ownership  and  land  use,  as  well  as  on  ownership  and  lease  rights.  The  transfer  of
ownership  and  lease  rights  should  be  simple  and  cheap.  The  greater  the  government  intervention  in  the
operation of the land market, the slower and more costly the shaping of the new farming structure will be. The
leasing  of  land  will  have  a  very  important  role  in  shaping  an  efficient  farming  structure,  and  the  conditions  for
leasing must be determined fundamentally by the supply and demand relation.
The  present  role  of  the  government  in  the  CEECs  is  to  provide  the  framework  for  a  smooth  and  flexible
restructuring process. This process should be based on the changing economic environment which creates the
need for reallocation of agricultural land to different uses (industrial, residential, transport infrastructure) and the
individual  decisions  of  the  owners,  who  select  freely  among  the  various  forms  of  land  use.  On  the  other  hand
clear property rights and real state markets must be established. The government should, therefore, provide a
legislative and policy framework which clearly recognises these various options and the freedom of choice of the
owners, and reinforce it with an appropriate public information system.

1.2  Distribution of resources

1.2.1  Production

In the last thirty  years in the EU countries an increasing specialisation of agricultural production is observed as
well  as  a  concentration  of  livestock  farming.  Productivity  has  been  boosted  in  parallel  with  reductions  in  the
agricultural labour force (30% in EU-12 1987-1997) which has also aged5.  Since  the  beginning  of  the  CEECs’
transition  to market economies agri-food  trade between the EU and the CEECs has  increased dramatically.
However while EU agri-food imports from the CEECs have doubled, EU exports to CEECs have increased almost
tenfold between 1988 and 1998.
The  Russian  crisis  in  1998  led  to  a  decline  of  an  important  export  market  for  the  CEECs.  The  adjustment  of
livestock production as a response to tighter markets was only visible in 2000. Many of the future possibilities for
the development of the CEECs processing industry and food exports will depend on the recovery of the Russian
market, with most still experiencing difficulties in finding alternative outlets. The agri-food sectors, in particular the
milk and livestock sectors as well as the related processing industries are still undergoing restructuring, which is
needed if they are going to withstand increasing competition due to the opening of domestic markets.
In Slovakia agricultural production is domestic market-oriented and the share of food exports in total exports is
about 6 percent. Agri-food imports and exports are slightly unbalanced, with imports outweighing exports (tropical
fruit, diverse preparations, feeding stuffs). Austerity measures imposed on budgetary spending resulted in cutting
direct  payments  to  farmers  by  half  and  phasing  out  consumer  subsidies.  As  a  result,  physical  farm  output
diminished by approximately one-quarter, productivity sank and farm income declined to reach its lowest level in
1991. (The total loss in the agricultural sector amounted to koruna 11.6 billion).
In  Bulgaria  approximately  5%  of  agricultural  land  is  currently  uncultivated.  Most  of  the  crops  have  been  very
sensitive to the changes experienced in Bulgarian agriculture and the process of transition has meant a reduction

5   38% agricultural labour force aged 55 or over (1997). Source: Eurostat

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in areas or in production levels. In the case of tobacco, sugar and wine the decline has been very significant.
Cereals and sunflower seeds appeared to be the main substitute crops of the transition period. The relative share
of the latter two in crop output has increased. Cereals are the most important crops produced in Bulgaria. They
usually represent 30% of the total crop output. In 1997, 2 Mio Ha were cultivated with cereals. Sunflower seeds
are one of the few crops where production has increased substantially.
In Latvia 44% of the land is covered by forests (2,9 million ha) and timber production is rising steadily. The most
fertile soils can be found in the plains to the south of Riga, where most of the sugar beet production and also fruit
and  vegetable  production  is  concentrated.  The  central  and  eastern  mountainous  areas  are  less  favourable  for
crop production and are therefore dominated by cattle breeding. A significant feature of the changes in the arable
sector was the sharp decline of the production of fodder crops which, in 1997, accounted only for half of the area
used for these crops in 1990. While sugar beet, oils seed and vegetables represented a low percentage of the
total sown area, with the absolute number of hectares decreasing over time, the increase of the total sown area
from  1996  onwards  resulted  from  an  increase  in  the  cereals.  Potatoes  remained  broadly  stable  with  some
fluctuations reflecting short-term responses to the market situation.  In 1999, the value of EC imports of a In this
context,  the  new  reciprocal  concessions  for  agricultural  products  negotiated  under  the  Europe  Agreement  will
allow for 75% of bilateral trade in agricultural products to benefit from preferences.
The poor financial situation of the farming sector in Lithuania, as well as the lack of credit resources, prevented
investment in agriculture. Farm income contracted in 1993 and 1994 and was far below the national average. To
improve the financial situation of the farming sector, and also to create incentives for an increase in farm output,
the  Lithuanian  Government  introduced  market  regulation  measures  in  1995.  The  situation  for  the  agricultural
sector in 1999 was characterized by an increase in agricultural output of 3.7%. While the livestock sector saw an
increase of 2%, crop production declined by 2.7%. As regards the agro-food sector, the developments have been
rather  mixed.  Therefore,  Lithuania  has  only  partly  met  the  relevant  short-term  priorities.  The  restructuring  has
continued  in  the  dairy  sector,  where  investments  focussed  on  the  improvement  of  hygienic  status  and
technologies.
In  regard  to  grain  production  there  has  been  a  dramatic  decline  in  total  production  which  can  be  attributed  to
fragmentation of land and grain areas as a result of land reform, a sharp reduction in input use because of the
rapid  input  price  increase  and  the  low  level  of  mechanization  in  small  farms.  Traditionally,  Lithuania  produced
grain in larger volumes than today, although it is predicted that in the near future 1 to 1.1 million ha of cereals will
be grown. which would meet domestic demand. Sugar production is also important in this country. From 1993
until 1995, average annual sugar production was 93 000 tons, out of which 70 000 tons, or 75 percent of total
sugar  output,  was  produced  from  local  sugar  beet.  Also  rapeseed  is  a  relatively  new  crop  in  Lithuania  and
climatic conditions are favorable to it.
In Latvia, following the major drop in farm output in the transition period, the level of production started to stabilise
in 1997. Gross agricultural output even experienced a minor increase in 1997 when it reached LVL 9,100 million.
The tendency towards stabilisation was totally due to a rise in crop output as livestock production continued to
decline. Cereals have been the most important arable crops grown over the last decade on roughly half of the
cultivated area. An upward trend in the total sown area could be observed since 1996, which kept momentum in
1997 reaching 482,7 thousand hectares. The area sown with cereals is, however, still 30% below its 1990 value.
Yield reached on the average of all types of cereals 2,14 t/ha in 1997. Total grain production recovered from a
low level of 687.000 t in 1995 to 1.037.000 t/ha in 1997. Both the potato area and harvest remained stable in the
first third of the decade with some fluctuations due to weather conditions. In 1997, the potato area reached its low
at 69 thousand hectares. With yields remaining stable, the level of total production followed the decline in area
and  reached  843  thousand  tonnes  in  1997.  The  area  planted  with  sugar  beet  has  been  relatively  constant
reaching 11 thousand hectares in 1997. Sugar yields and sugar content were relatively low, especially in the first
years  of  the  reform  period,  while  recovering  to  the  pre-reform  levels  in  1997.  A  recovery  of  sugar  production
could be observed during the last three years up to a level of 387 thousand tonnes in 1997.
The  main  fruit  grown  in  Latvia  are  apples  and  other  tree  fruits,  which  account  for  roughly  90%  of  total  fruit
production.  The  area  under  fruit  trees  has  declined  in  recent  years,  whereas  the  area  planted  to  berries  has
increased, mainly in small household plots. The cultivation of vegetables increased, mainly on household plots,
whereas professional production on large-scale farms has dropped significantly in recent years. As a net effect,

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total production dropped to little more than two thirds of its pre-independence level and reached 146,5 thousand
tonnes in 1997.In 1997, dairy production accounted for roughly one fourth of total agricultural output and half of
the  livestock  part  in  GAO.  Between  1990  and  1997,  total  milk  production  has  been  reduced  to  half  of  its  pre-
reform  level.  The  decline  in  cow  numbers,  which  continued  up  to  1997,  was  outweighed  in  recent  years  by
increasing yields per cow, resulting mainly from the selection of more productive cows in the de-stocking phase.
As a net-effect, production shows a certain recovery in 1997 with a level of 986 thousand tonnes.
Beef  meat  has  turned  to  hardly  more  than  a  by-product  of  milk-production,  with  a  contribution  to  the  livestock
GAO of not more than 10% in 1997. Total production of beef and veal was at a level of 125 thousand tonnes in
1992.  Until  1997,  total  production  experienced  a  dramatic  contraction,  falling  to  only  27,6  thousand  tonnes.
Developments in pig production, which was before independence was the most important part in meat production,
witnessed a sharp decline. The steady decline came to an end in 1997 at a production level of 44,5 thousand
tonnes, which represents only a third of the pre-independence output. The main problem of the transition process
was the deterioration of production capacities in units of a competitive size. Individual farms and household plots
increased their share in stocks from 13% in 1990 to 60% in 1997. The forest sector has a high potential that could
be  mobilised  relatively  easily.  In  the  last  few  years,  the  timber  harvest  has  markedly  increased.  For  the  future
economic development of Latvia, the forestry sector and its related industries have a significant potential.
Bulgaria,  in  the  trading  of  agricultural  and  food  products,  and  the  country’s  expectations  for  their  future
development, has good natural conditions to produce almost all kinds of agricultural products, except for citrus
fruit and some other heat-dependent crops. Historically Bulgaria has always had a high degree of self-sufficiency
and  a  positive  trade  balance  in  agricultural  products.  The  unfavorable  macroeconomic  environment,  the  slow
restructuring and privatization in the agricultural and food industry and the loss of traditional Council for Mutual
Economic  Assistance  (CMEA)  markets  and  of  the  markets  of  some  Arab  countries,  had  a  negative  affect  on
agricultural  production  and  export.  Compared  to  potential  capacity  and  exports  before  1989,  Bulgaria  now
produces  and  exports  in  much  smaller  quantities.  It  is  difficult  to  assess  the  long-term  competitiveness  of
Bulgarian  agriculture  and  its  food  industry  owing  to  the  volatile  macroeconomic  environment,  unstable  and
undervalued exchange rates and distorted prices. Traditionally Bulgarian agriculture has been competitive in the
production and export of unprocessed and processed fruit and vegetables, wines, tobacco and tobacco products,
some dairy products, lamb and sheep meat. It can be expected, that Bulgaria will keep some of its comparative
advantages based on favorable natural conditions in the Balkans and a relatively cheap labour force. Agricultural
and  food  strategy  objectives  and  their  consistency  with  the  international  environment  are  subject  to  further
adjustment.
In Poland by far the most important crops are cereals, particularly wheat and rye, less significant and in order of
area are potatoes, fodder crops, sugar beet, oilseeds and pulses. For most crops, production has been lower in
recent years than before transition. Self sufficiency in most crops is generally between 90 and 100% except for
oilseeds (ranging between 55% and 146%) where the area has fluctuated considerably in recent years and for
sugar where there is generally an exportable surplus. Fruit and vegetables account for 3% of the agricultural area
and 10.3% of agricultural output. There are strong exports, in particular of fruit and fruit products. The economic
transformation process affected the livestock sector more than the crops sector. State farms in particular let their
livestock production fall and concentrated on crops. Falling incomes together with the elimination of consumption
subsidies severely reduced meat consumption. Pigmeat production avoided the worst depression though there
has been some fluctuation in particular due to high feed prices in some years. Poland is one of the biggest pig
meat producers in Europe. Poultry production was badly affected initially but has recovered to be by far the most
dynamic sector. Cattle and particularly sheep numbers were severely cut. The fall in beef production has slowed
down in recent years. For milk, the first sign of a small increase occurred in 1997.
In  the  farm  sector,  big  structural  changes  cannot  be  expected  and  the  small  farms  size  will  continue  to  be  a
particular  handicap  for  modernisation.  This  will  be  especially  important  for  land  dependant  activities  such  as
arable crops and grazing livestock but less so to intensive animal production and perhaps fruit and vegetables.
Cereals  area  and  production  will  increase  but  the  balance  will  be  taken  up  in  feed  use  due  to  the  forecast
increase in animal production. The potato area will continue its decline. Rapeseed area will increase to its pre
1989  levels  but  will  be  influenced  strongly  by  short-term  weather  and  price  fluctuations.  In  this  case,  Poland
would again become an exporter. Sugar production can expect to be contained by the support system (quota). It

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is assumed that some of the idle land will come back to cereals production but most will go for afforestation, be
converted to pasture or remain idle. Milk production is foreseen to expand slowly but not reach pre 1990 levels,
exports will be maintained. Beef production is unlikely to recover greatly given current prices and low consumer
demand.  Pigmeat  production  which  was  least  affected  by  the  economic  transformation  process  will  undergo  a
modest growth with some exports. The most dynamic sector will be poultry where very strong growth is already
apparent though this may not be sufficient to meet consumer demand.
In Slovenia over half of the country is covered by forests, only one-third is arable land and the rest is pasture,
mostly in high or mountainous areas. This explains why animal husbandry is the most important single branch in
agriculture. The best opportunities for farmers are in the production of milk and meat, fruit, grapes for wines and
vegetables.
In  Hungary  cereals  are  the  main  crops,  covering  around  80%  of  the  arable  land.  From  1989-1997,  the  areas
under  wheat  and  maize  were  roughly  the  same  (ranging  from  1  to  1.25  Mio  ha  in  recent  years).  In  terms  of
production, maize has tended to dominate wheat, with an average for 1994-96 of more than 5 Mio t., compared
with 4 Mio t. for wheat. These two crops account for 85% of cereals production and for 90% of cereals exports.
Sunflower  is  well  adapted  to  Hungary's  agri-climatic  conditions,  and  sunflower-seeds  are  exported  world-wide.
Over the last ten years sunflower has enjoyed an overall increase in both area and production. The area planted
to sugarbeet has varied considerably over the decade, falling below 100 000 ha in 1997. Vineyards, orchards and
vegetables  also  cover  about  100  000  ha  each.  For  most  crops,  with  the  exception  of  barley  and  sunflower,
average  production  volumes  have  been  lower  in  recent  years  than  pre-transition.  The  fall  in  production  was
therefore  mainly  due  to  a  decline  in  yields,  which  can  be  explained  by  a  variety  of  structural  and  short-term
factors: the lack of inputs, uncertainty due to the privatisation process, successive droughts.
Contraction  in  the  livestock  sector  has  been  even  more  severe,  in  terms  of  both  numbers  and  output.
Restructuring  has  resulted  in  a  significant  down-sizing.  Livestock  units  decreased  sharply  until  1994,  and
evolution since then has been irregular, but the average numbers of animals for 1996-1998 are significantly lower
than in the pre-transition years. While beef meat production is not in itself high, 30% is exported, as well as a
significant  number  of  live  animals;  exports  can  therefore  be  regarded  as  relatively  important.  Furthermore,  as
cattle production is milk oriented, beef production has to be considered together with milk supply. Both production
and consumption of milk have fallen by 30%, compared with pre-transition.
In Estonia the situation in 1999 was particularly difficult for the agricultural sector, whose total output decreased
by 4.3% compared to 19986 Particularly important was the decrease in production in the livestock sector, where a
decline both in production and in prices was observed. In particular, total production of milk decreased. This was
the result of low productivity and a decline in the number of cows following a steep decrease in milk prices, which
on average were 20% lower than in 1998. The recovery of milk prices started in the last quarter and continued
this year. In meat production, pigmeat is by far the most important product. Prices of pigmeat were, on average,
30%  lower  than  in  1998.  The  unfavourable  international  market  conditions  and  increased  exposure  to
international competition explain the big decrease in prices.
As  a  general  remark  it  can  be  said  that  the  region's  agriculture  must  adjust  to  the  basically  new  internal  and
external  circumstances.  Rapid  expansion  of  internal  demand  cannot  be  expected  and  capturing  a  permanent
share  of  external  markets  requires  a  basic  improvement  in  efficiency,  quality,  and  competitiveness.  In  this
situation, the level of output will remain for some time lower than that reached in previous years, which means
that agricultural production cannot become the engine for general economic recovery. Although the process of
enlargement is expected to create momentum for the strengthening and the expansion of processing, marketing,
purchasing,  and  other  service  co-operatives  in  the  future.  These  service  cooperatives  will  provide  a  viable
support  framework  for  the  growth  of  private  farms  which  will  be  detached  from  the  collective  sector  still
undergoing the process of transition. The development of service cooperatives calls for government attention and
support.  What  is  even  more  important,  private  production  is  emerging  under  conditions  of  strict  efficiency
requirements, hard budget constraints, and intense market competition, and this process will have losers as well
as winners.
General economic conditions have improved and strong economic growth is expected to continue in most of the
Central  and  Eastern  European  candidate  countries.  Rising  consumer  incomes  might  provide  opportunities  for

6   Source: FAO.

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CEEC agriculture and food processing as well as challenges. The opportunities are related to increasing demand
for  processed  agricultural  commodities  as  well  as  some  expansion  of  consumed  quantities  of  certain  highly
preferred  agricultural  commodities  such  as  fresh  milk  products,  cheese,  poultry  products  etc.  Moreover  new
export  possibilities  might  arise  from  a  recovery  of  Russian  markets  and  positive  developments  on  the  world
markets.  Challenges  will  in  particular  be  the  result  of  the  increasing  integration  of  the  CEEC  and  EU  food
markets.  However,  confronted  with  a  stagnating  demand  for  bulk  products  on  domestic  markets,  increasing
competition on domestic and international markets, CEEC agriculture and food processing will need to restructure
in order to achieve a competitive use of a significant agricultural potential.

1.2.2  Distribution

The  distribution  of  agricultural  products  and  their  access  to  consumers  is  enabled,  to  a  high  degree,  by  the
transportation  infrastructures  in  place  (for  transport  infrastructure  see  below  topic  transport).  Improvement  of
distribution  efficiency  that  leads  to  lower  transaction  costs,  trade  margins,  etc.  The  aftermath  of  decades  of
socialism is largely similar throughout the region. The food and agriculture of CEECs on the eve of the transition
was characterised by a widespread monopoly in the distribution networks. Most CEECs still have a shortage of
modern  inputs  owing  to  a  large  extent  to  underdeveloped  distribution  channels.  These  have  increased  the
economic disincentive to invest in agriculture. The same applies to the collection infrastructure of the agricultural
products  in  order  to  bring  them  to  the  processing  plants.    The  collapse  of  the  previous  economic  system  has
created  large  gaps  in  the  collection  network.    It  is  expected  that  with  the  EU  enlargement  processes  the
necessary  funds  as  well  as  the  technical  and  managerial  know-how  will  be  transfused  to  the  CEECs  from  the
existing member states  of the EU in order to re-establish and modernise these networks in such a way as to
achieve the efficiency needed to create a competitive production line.
The present problems of the collapse of the transport and collection infrastructure are further enhanced in Latvia,
where  most  agricultural  activities  take  place  in  areas  where  farming  conditions  are  rendered  difficult  by  the
disadvantageous terrain. The same applies in Slovenia, where difficult natural conditions for production do not
permit low-cost mass production of food, especially in the production of grain and industrial crops.
On the whole it can be said that the transport and collection infrastructure is in a disarray and urgent efforts to
recreate them are needed from the EU, although in some cases the physical characteristics of the land are not
favourable and are creating further problems.

1.2.3  Consumption

Different areas have different consumption needs and it is important for each country to respond first of all to its
internal demand. During the first years after the collapse of the centrally planned system consumption patterns
have  showed  a  relative  decline  in  both  quantity  and  quality  in  most  of  the  CEECs.    This  can  be  attributed  to
several factors but mostly to the decreasing purchasing power of consumers in these countries.  The accession
of the CEECs is expected to reverse this trend and to increase the demand for products both in terms of quantity
as well as quality.
In Slovenia there is a low import to export ratio (50 percent) in foreign trade of Slovenian agricultural products.
This is because the main characteristic of the country’s food-supply balance is the low level of self-sufficiency.
Almost  100  percent  self-sufficiency  is  attained  for  potatoes,  eggs,  fruit  and  wine.    Slovenia  has  important
surpluses in the production of hops (extremely export-oriented production), poultry meat and milk. The degree of
self-sufficiency increased for practically all agricultural products in the period between 1980 and 1994.
In Latvia both the dairy industry and the milling industry, where the four largest milling enterprises have a market
share of 60%, reveal growing concentration. At the same time enterprises have started to specialise, targeting a
definite  segment  of  the  consumer  market  with  their  production  activities.  The  milk-processing  sector  has
specialised in either whole milk or products such as cheese or ice cream. First signs of a positive development
reveal  a  certain  improvement  in  competitiveness.  Growing  Western  imports  put  pressure  on  the  Latvian  food
industry  to  reorient  towards  meeting  consumer  requirements  by  increasing  the  quality  and  variety  of  food
products, as well as improving the packaging.
In Czech republic over half of the arable land is planted to cereals, mainly wheat and barley, and about a quarter
to  fodder  crops,  mostly  maize  silage  for  cattle,  although  fodder  area  and  its  share  have  been  declining  as

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livestock production went down. Cereals area has remained fairly stable with a tendency to increase in recent
years under the influence of favourable producer prices. With an average yield of around 4.2 t/ha production has
fluctuated in the range of 6 to 7 million t, close to domestic needs. Oilseeds area expanded rapidly during the first
half of the nineties, but has tended to stabilise in recent years. Over 80% of oilseed production is rapeseed with
some  increase  in  sunflower  seed  in  recent  years.  The  domestic  crush  has  steadily  risen  as  the  demand  for
vegetable  oils  and  fats  has  grown.  Sugarbeet  area  declined  from  its  pre-transition  level  and  has  fluctuated
between 90,000 and 100,000 ha in recent years.
Production has tended to exceed domestic use, leading to exportable surpluses. The livestock sector has been
relatively hard hit during the transition process. In the dairy sector the large drop in domestic use of milk of nearly
40% compared to pre-transition levels has been reflected in a downward adjustment of production of a similar
magnitude. For butter and skimmed milk powder the Czech Republic is a net exporter, while for cheese exports
and imports have been more or less in balance in recent years. In the meat sector the continued liquidation of the
cattle herd has led to a significant drop in beef production, which has followed the strong downward adjustment in
consumption. After relatively high exports in the first years of transition the Czech Republic has become a smaller
net exporter in recent years.
Increasing prices for agricultural commodities and the steady decline in real income since 1990 led to changes in
the  patterns  of  food  consumption  in  Latvia.  Consumers  substituted  relatively  more  expensive  products  for
cheaper  ones.  As  a  result,  consumption  of  dairy  products,  meat,  fish,  eggs  and  sugar  declined,  while
consumption  of  potatoes,  vegetables  and  edible  oils  increased.  In  Slovenia,  the  main  losers  have  been  final
consumers who have had to pay prices substantially above world market equivalents with farmers, retailers and
processors  all  effectively  protected.  In  Hungary  and  Poland  consumers  have  also  had  to  pay,  overall,  above
world market equivalent prices for food but this has arisen from transfers to processors and large retail margins,
rather than support to farmers.
In summary it can be said that the internal consumption of agricultural products in the CEECs has fallen during
the transitional period to market economies.  This is expected to be reversed with the integration of the countries
in  the  EU.    On  the  other  hand  the  extension  of  the  internal  EU  consumer  base  will  create  a  market  for  the
products  that  are  overproduced  in  the  existing  members  as  well  as  improve  the  quality  standards  of  the  food
products consumed in the CEECs.

1.3  Overproduction

Since  1981  the  EU  has  been  implementing  directives  on  European  agriculture  with  the  aim  of  reducing  the
surpluses  by  cutting  prices.  The  accession  of  CEE  countries  will  cause  even  more  surpluses  of  some
commodities,  particularly  beef,  pork,  and  rye.  Moreover,  since  the  prices  of  the  agricultural  products  in  these
countries are very low, their accession will mean that, with the implementation of CAP prices, overproduction will
occur.  With enlargement agricultural productivity in CEECs should increase further  because of the economic
conditions that will have been fulfilled and because of improved access to capital, technology and other factors of
production.  Additionally the rise in prices will reduce the internal demand for these products, which will worsen
the problem of surpluses.

On the EU-15 side, land and labour costs the comparatively cheaper in the CEECs than in existing members of
the EU and the addition of CAP subsidies, cause concern that cheap food products will enter Western markets
when  accession  harmonizes  trade  barriers,  resulting  in  a  considerable  increase  in  overproduction.  EU  policy
makers also worry that accession will dramatically increase the budgetary burden of the CAP, to the extent that it
would  probably  bankrupt  the  European  budget  and  in  the  process  cause  a  major  conflict  with  the  EU
commitments in the WTO. General estimations eventually contribute to the conclusion that the agricultural
production  and  trade  effects  of  enlargement  and  their  implications  will  be  more  limited  than  initially
expected, although some uncertainty remains. But in order to deal with this problem before it gets out of hand
the EU should continue to enforce and strengthen productivity controls already in place. Governmental structures
in these countries should be organised so as to fall in line with those of the EU.

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Especially the year 2000 has been a year of extremes in CEECs. The adjustments following the collapse of the
Russian  export  market  became  fully  evident  in  the  production  figure  in  the  animal  sector.  In  addition  many
countries were affected by the worst drought since the transition. The consequences of the drought will be felt
also in the production outcome for at least 2001. It remains to be seen whether these short-term effects will affect
medium-term trends. The general assumption for these medium-term projections has been that production and
consumption will return to the underlying trend.

The area of cereals grown in the CEECs has been relatively stable at above 24 mio ha during the second half of
the 1990s. High world market prices for cereals in 1996 and 1997 led to an increased cereal area in the CEECs.
However due to unfavourable weather for cereal sowings in some countries and the relatively good oilseed prices
in  autumn  1998,  the  cereal  area  harvested  in  1999  was  reduced  by  1.7  mio  ha  to  22.5  mio  ha,  but  this  was
compensated  by  higher  oilseed  areas  so  that  total  area  of  oilseeds  and  cereals  were  unchanged  in  1998
compared to 1997. In 1999 prices for oilseeds decreased significantly and the total area sown with cereal and
oilseed decreased by more than 1 mio ha to 26.2 mio ha and stayed at this level in 2000. However there was a
significant shift from oilseeds to cereals during 1999 and the cereal area returned to more than 23.2 mio ha in
2000 and a further increase to 24 mio ha is expected in 2001.
For  the  period  2001  to  20077  the  total  area  under  cereals  in  the  CEECs  is  expected  to  show  a  minor  annual
increase of around 130 000 ha and reach about 24.9 mio ha in 2007, 4% above the average cereal area of 1996-
2000. It is assumed that the area under cereals will stay rather stable or show small increases in most countries,
and that only Poland and Bulgaria should see a significant increase of respectively 400 000 ha and 250 000 ha
from 2001 to 2007.
As is the case for the EU, much will depend on the relative prices between cereals and oilseeds. In general, the
development of the relative world market price between cereals and oilseeds should not encourage an increase
of oilseed production during the projection period. Hence, the foreseen area increase in arable crops will
predominantly go into cereals. The exact amount will depend on how much area is transferred from production of
other crops, grassland production or from arable land which is currently unused.
Since the beginning of the 1990s the average cereal yield in the CEECs has increased by more than 15 % from
around 2.7 t/ha in 1992 to 3.2 t/ha in 1999. The estimated yield for the year 2000 is influenced by the severe
drought, which has reduced yields in all countries and for nearly all crops. The average cereal yield in 2000 is
estimated at only 2.69 t/ha. Yields are foreseen to return to normal levels of around 3.2 t/ha in 2001.
Future development in yields will depend on the possibility for farms to improve their use of inputs and on their
ability to afford their use at the same time as introducing new technology. It is expected that the average yield for
the CEECs will continue to increase, at 1.2 % per annum and reach on average 3.4 t/ha in year 2007. For the
drier regions of the CEECs an annual increase in yield slower than the average is expected, due to the need for
irrigation to improve yields in these regions and to the fact that the financial resources for these investments may
be lacking.
The area grown under oilseeds in the CEECs reached a peak in 1999. This was the result of the attractive
oilseed prices in 1998 compared to cereal prices, as well as weather related problems during cereal sowing (for
instance in Hungary and the Slovak Republic). The changes in harvested area during 1999 in the CEECs show
that farmers in the CEECs are responding quickly to price signals from the market.
Yield is expected to grow at a rate slightly lower than that of cereals at below 0.8 % annually. As in the EU, the
annual increase should be higher for rapeseed (1.4 %) than for sunflower Based on the assumptions on area and
yields mentioned above, total oilseed production should have decreased in 2000 due to reduced area and
reduced yield caused by drought. However, as yields are expected to improve, production should reach 5.4 mio t
in year 2007, which is still below the record crop in 1999.seed (very limited increase of 0.2 %).
The milk sector is of major importance for most of the CEECs. Together with the beef sector milk is an area
where the CEECs have seen significant reductions since 1990. The CEECs as a group have been net-exporters
of milk and are expected to continue to remain so in the projection period. Currently, Poland (with 12 mio t) and

7 Source: Prospects for agricultural markets in the CEECs, European Commission

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Romania (with 5 mio t) are the most important producing countries whereas the Czech Republic, Lithuania and
Poland are the most important exporters each with 400-600 000 t milk equivalent in 1999.
The number of dairy cows has decreased from above 10 mio in 1992 to 7.9 mio in 1999 and a further decrease to
7.7 mio heads is estimated for 2000. In the projection period it is assumed that the number of dairy cows will
continue to decrease until 2005, but at a decreasing rate compared to the previous years. A slight increase in the
herd is expected in 2006 and 2007. The total number of dairy cows is projected to reach 7.39 mio in 2004 and go
up to 7.40 mio in 2007. This is based on the assumptions that the ongoing restructuring will continue and that the
improved quality of raw milk will increase the competitiveness of milk production in the CEECs.
The number of cows is assumed to decrease in all countries except Bulgaria, where the dairy herd has been
growing since 1997. This increase in Bulgaria is due to increased production – including cheese processing - in
mainly subsistence farming as a way of ensuring income for this group of farmers during the recent economic
hardship. The development in total herd size in the CEECs may hide some significant structural changes in the
different countries. This could be of great importance involving, for example, a switch from household farming
(subsistence farming) to commercial farming or vice versa (as has been the case in Bulgaria).
A further reduction in 2001 of more than 1.5 % is expected). It is projected that the average yield per cow should
increase by up to 1.5 % annually by the end of projection period (which is at the same rate as in the EU). Some
countries such as the Czech Republic, the Slovak Republic and Slovenia have in recent years had some very
significant yield increases (more than 5 % annually). However, it appears that these improvement rates cannot be
maintained in the coming years. To benefit fully from the potential of improved genetics through import of new
breeding material in the dairy herd, the CEECs would also need to improve feeding and other production
techniques.
Total milk production decreased by 2.6 % (0.75 mio t) in 1999 to 28.2 mio t and is expected to decrease by a
further 0.6 mio t in 2000. During the projection period the assumed increases in yield per cow coupled with the
slight decrease in cow numbers will lead to an increase in milk production from 27.6 mio t in 2000 to 29.4 mio t in
2007. Of this 1.8 mio t increase, 1.0 mio t will be in Poland, 0.4 mio t in Romania and 0.2 mio t in Bulgaria.
It is assumed that internal use should increase in the projection period, but by less than production. It is expected
that most of the increased milk demand in the CEECs will come mainly from an increase in use of fresh milk
products (including yoghurts etc) and cheese. These products have in recent years shown significant increases,
and with the current economic outlook this development should continue. Total internal use is projected to reach
27.7 mio t in 2007 compared to 26.3 mio t in 1998. On average, annual increases of more than 1.0 % are
foreseen during the period.
Given the figures mentioned above on milk production and consumption, the CEECs' net export balance will
decrease from 2.7 mio t in 1998 to just below 2 mio in 2000. A further reduction to 1.5 mio t in 2002 is projected
and then going up marginally to 1.7 mio t in 2007. The increase in quantities available for exports mainly arises in
the Czech Republic and Poland and to a lesser extent from other CEECs. This projection for the net exportable
balance for milk includes an increase in total import of dairy products.
Whereas butter production has been on the decline, cheese has been on an upward trend since 1992 both in
production and consumption. Total cheese production has gone up from 650 000 t in 1992 to 850 000 t in 1999.
The biggest producer is Poland followed by Hungary and the Czech Republic. In several of the CEECs a
significant part of cheese is produced and consumed by or sold from the household and this plays an important
role in subsistence farming. During the projection period a further increase in consumption and production is
foreseen. It is projected that per capita consumption could reach 9 kg/capita in 2007 (19 kg in EU-15) and total
production could be above 1 mio t in 2007. The CEECs are expected to have a net-exportable balance of cheese
during the whole projection period. After a decrease during 2000, it is expected that this will increase during the
period, as the quality of the milk increases and the restructuring of the dairy industries progresses.
The beef meat sector has been the sector that has experienced the largest reduction in production since the
beginning of transition. From 1989 to 1999 production decreased by 40 % to less than 1.1 mio t. Two countries
dominate beef production in the CEECs, Poland and Romania, with respectively 0.4 mio t and 0.2 mio t. During
the projection period it is expected that the number of animals slaughtered will decrease slightly and in line with
the reduction in the number of dairy cows. The minor increase in suckler cow production will not be able to

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compensate for this decrease. The average slaughter weight is expected to stay stable at around 188-189
kg/head. Total beef and veal production is predicted to be at 1.05 mio t, compared to 1.1 mio t in 1999.
Compared to 1999 total pig meat production is estimated to decrease by 0.4 mio t (9%) in 2000. The production is
expected to return to a growth path as from 2001 and should continue at a yearly average rate of around 1.5 %
until 2007. Total production is projected at 4.7 mio t in 2007. A significant part of this higher production will be
consumed within the CEECs. The biggest increases both in absolute figures and in percentage are expected in
the two main producing countries, i.e. Poland and Hungary. In 2007, Poland and Hungary together should
produce around 3 mio t, of which 2.2 mio t in Poland. These projections are based on the assumption that the
producers and processors in the CEECs can overcome most cost pressures including relatively high cereal and
oilseed prices, which will increase prices for animal feed.
Total production of poultry meat is projected to go beyond 2 mio t in 2006 compared to 1.8 mio t in 1999. This
increase is the result of a yearly increase of around 2.0 %, and the most significant increases are assumed to
take place in Hungary, Romania and Poland. The increase in production is mostly driven by demand from the
internal market in the CEECs following changes in meat preference consumption patterns.
Production is projected to decrease slightly to around 110 000 t. The two biggest producers Romania and
Bulgaria each produce more than 40 % of the total sheep and goat meat production. Beyond the two main
producers, the production and consumption of sheep and goat meat is very limited in the CEECs. In total the
CEECs have a minor exportable surplus.

Productivity  increases  seem  to  be  lagging  in  the  two  largest  countries,  Poland  and  Romania.  Both  are
characterised  by  unfavourable  production  structures,  small-scale  farms    resistant  to  rapid  restructuring  and
productivity  growth.  These  agricultural  sectors  are  also  hampered  by  hidden  unemployment,  low  skills,  poor
access to inputs and inefficient scales.  Given the large share of total CEEC land and labour employed by these
farms, these deficiencies will be an important constraint  on future productivity and output growth for the CEECs.
As  far  as  it  concerns  Czech  republic  in  1999,  EC  imports  of  agricultural  products  originating  in  this  country
increased  to  €  379  million,  compared  with  €  299  million  in  1998.  In  the  same  period,  EC  exports  to  the  Czech
Republic were stable at  €  954 million. The trade balance in favour of the EC amounted to €  575 million in 1999,
compared to €  655 million in 19988. As a consequence of the new reciprocal concessions on agricultural products
negotiated  under  the  Europe  Agreement,  approximately  half  of  EC  imports  and  one  third  of  EU  exports  of
agricultural products will be exempted from duties.
Poland, thanks to relatively favorable climatic conditions is self-sufficient in agri-food products. In the early 1990s,
because of a number of adverse macroeconomic conditions, particularly a decline in real incomes and a lower
demand  for  consumer  goods,  there  was  an  overproduction  of  agricultural  and  food  products.  But  exporters
cannot  expect  permanent  export  surpluses,  while  importers  cannot  expect  a  steady  demand  for  imported
products. Traders do not find the conditions to specialize in export or import of certain products; they are obliged
to diversify. Thus it is difficult to create trade policy. So far, government efforts to promote exports are found to be
insufficient and inefficient. In addition, the competitiveness of Polish exports has diminished significantly over the
last few years because of the continuous appreciation of the national currency.
Slovak agri-food trade represents only a small portion of total trade. Looking at the agri-food trade balance, the
country is a net importer of food, BUT nevertheless several commodities have been achieving export surpluses.
During  the  last  three-year  period,  both  imports  and  exports  have  been  increasing  while  the  balance  has  been
showing a slight improvement (exports accounted for SK16.2 billion or US$540 million and imports for SK22.4
billion  or  US$743  million  in  1995).  Of  staple  farm  products,  cereals  have  the  best  price  competitiveness  on
international markets. In 1995, at buoyant prices a top volume of wheat exports (approximately 800 tonnes) was
achieved. Wheat flour and other milling products have been successful as well. Exports of live cattle are mostly to
EU countries. Another important trade item is vegetables, the greatest volume of which go to Czech consumers.
There  is  also  a  significant  trade  capacity  in  dairy  products.  In  1994  and  1995  dairy  exports  were  directed  to
various destinations, among them to the EU countries, the most important trading partner. In value terms, annual

8 Source: Uruguay Round Agreement definition of agricultural products, figures taken from EUROSTAT COMEXT (see
Agriculture in the European Union – statistical and economic information 1999 p. 36 for definition of the products).

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exports  of  dairy  products  account  for  US$60  million  a  year,  close  to  a  10  percent  share  of  overall  agri-food
exports.  Similar  volumes  of  exports  cannot  be  expected  in  the  future.  Nevertheless,  cereals  and  cereal-based
commodities,  such  as  wheat  flour,  malt  and  starch,  seem  to  be  sustainable  leading  components  of  agrI-food
exports. Another such group is represented by dairy products, especially by cheese.
Slovenia is a large net importer of grain, sugar, fat and oil. In exports the most important group of products are
meat and meat products (27.5 percent of total value), drinks, milk products, eggs and honey. The most important
trading partners of Slovenia are the countries of Former Yugoslavia (the traditional export market for Slovenian
products) and the European Union. Since the Slovenian agricultural market is small and relatively open, it is very
sensitive to international agricultural market activity.
During the transition period Estonian trade has been redirected from the Former Soviet Union (FSU) countries to
western countries. The largest Estonian trade partner is Finland followed by the Russian Federation and Sweden.
Estonian experience has shown that for a small country the reorientation of trade is possible for a short time, but
the  price  paid  through  a  decrease  in  GDP  has  been  high.  Milk  overproduction  is  one  of  the  main  arguments
against agricultural support measures, because in the case of support measures to increase milk prices, export
subsidies  will  be  needed.  Grain  producers  seem  to  be  the  first  ones  who  would  lose  their  market  share  to
importers  because  material  inputs  used  in  grain  production  have  world  market  prices.  In  addition  the  share  of
labour costs is small in grain production and grain output per unit of inputs is low in northern conditions. In 1999,
EC imports9 of agricultural products originating in Estonia decreased by 17% to  €34.2 million. The trade balance
was favourable to the EC and amounted to €197 million in 1999, compared to €238 million in 1998. The main EC
imports from Estonia are dairy products.
In 1997, Bulgarian agricultural products accounted for 14% of total exports compared to 8.8% of total imports.
The main exported commodities are tobacco, wine, processed fruit and vegetables and animal products (mainly
dairy  products).  The  largest  share  in  the  total  export  value  was  held  by  tobacco,  cigarettes  and  wine.  On  the
import  side,  sugar,  fruits  and  beverages  kept  the  lead.  The  main  destination  of  Bulgarian  agricultural  exports
remained  the  Central  and  Eastern  European  countries,  the  Organisation  for  Economic  Co-operation  and
Development  (OECD)  countries  assumed  38  percent,  while  24  percent  went  to  the  European  Union  (EU).
Traditionally  Bulgarian  agriculture  has  been  competitive  in  the  production  and  export  of  unprocessed  and
processed  fruit  and  vegetables,  wines,  tobacco  and  tobacco  products,  some  dairy  products,  lamb  and  sheep
meat. It can be expected that Bulgaria will keep some of its comparative advantages based on favourable natural
conditions in the Balkans and a relatively cheap labour force.
The prospects for Hungarian agriculture appear to be favourable. Production will increase in every sector, except
sugar,  compared  with  1996.  A  comparison  with  pre-transition  levels  highlights  a  significant  difference  between
crops  and  animal  products.  By  2003,  crop  production  should  have  recovered  and  be  even  higher  than  in  pre-
transition  years  for  oilseeds  and  for  wine.  In  contrast,  the  output  for  animal  products  will  be  lower  than  pre-
transition.  The  picture  for  exports  points  to  the  same  result:  crops  are  expected  to  increase,  while  exports  of
animal  products  will  be  stable,  or  even  lower  than  in  recent  years.    These  results  indicate  an  increased
specialisation  in  crops,  corresponding  to  Hungary's  comparative  advantage  in  this  sector.  However,  a  fair
balance should be maintained between the two major sectors, as they are inter-dependent not only for market
reasons, but also from an environmental and territorial point of view.
In general it can be said that the output of agricultural production in the CEECs is stable after the dramatic decline
of the 1990s, but it is in most CEECs still below pre-transition levels. This does not mean that there is no potential
for overproduction in the CEECs, when further integration has been achieved in EU structures.  In these regard
there are two main weak points in the Agenda designed for the CEECs. First, the limited reform in the dairy sector
and non-reform for sugar leave these regimes highly distortive, as evidenced by the large expansion of output
that might occur in the CEEC if quotas are lifted. According to estimates there will be a dairy surplus of 1.7 million
tonnes in the CEECs by 2007 (Prospects for Agricultural Markets 2000-2007).  This is a result of the large gap of
protection between these products and less protected commodities such as wheat and beef. The second weak
point  is  the  potential  use  of  export  subsidies  in  the  cereal  sector  to  maintain  cereal  market  prices  above
intervention prices. If this EU policy, pursued in the EU in recent years, is continued and extended to the new

9  Source: Uruguay Round Agreement definition of agricultural products, figures taken from EUROSTAT COMEXT (see Agriculture in

the EU-statistical and economic information 1999, p.36 for definition of the products).

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members,  it  will  generate  additional  incentives  for  grain  production  in  the  CEECs  and  expand  net  exports,
especially for the more highly protected types of cereals, i.e. coarse grains. According to estimates the forecast
for the CEEC-10 cereals surplus would be 10 million tonnes by 2007, coming on top of a EU-15 cereals surplus
of 41 million tonnes for the same year (Prospects for Agricultural Markets 2000-2007). A very important factor in
the creation of these surpluses being the world market prices.

Agriculture is a politically sensitive issue in international negotiations. It will not be different with eastern
enlargement. For example, Polish opinion polls indicate that farmers are now among the least enthusiastic
supporters of enlargement.

Furthermore, several factors will mitigate the enlargement effect on production and trade. Since the beginning of
the  CEECs'  transition  to  market  economies,  agri-food  trade  between  the  EU  and  CEECs  has  increased
dramatically.  However,  while  EU  agri-food  imports  from  CEECs  have  doubled,  EU  exports  to  CEECs  have
increased almost tenfold between 1988 and 199810. As a result, the net trade balance for the EU has improved
from negative 1 billion euro to a positive 2 billion euro. The nature of agri-food trade also changed. While trade
has  increased  in  most  categories,  exports  of  processed  products  from  the  EU  to  CEECs  have  increased
considerably more than imports of primary products. EU imports from CEECs have increased more or less the
same across different categories. EU export subsidies; quality differences; the competitiveness of the EU food
marketing,  processing  and  retailing  industry;  and  a  more  developed  institutional  framework  all  underlie  these
trade  developments.  Given  the  recent  upheaval  in  EU  food  markets  caused  by  the  BSE  and  dioxine  crises,
quality and safety factors in particular will increasingly affect trade. Both private businesses reacting to consumer
demands and EU accession requirements will impose EU standards on CEEC exports. Higher standards have
two  opposite  effects.  Lower  administrative  and  processing  costs  of  CEEC  imports  and  higher  quality  will  both
improve  access  to  the  EU-15  market.  However,  implementation  of  higher  standards  will  require  significant
investments that not all CEEC producers and processors will be able to make, and the production that satisfies
these requirements will be less than current output.
Moreover, in comparison to the immense trade and policy changes since 1989, future policy changes and the
resulting process and production effects appear moderate. Three forces have narrowed the price gap between
EU and CEECs’  agricultural products since the earlier 1990s. First, CAP reforms reduced support prices for some
of  the  most  protected  EU  commodities11.  Second,  agricultural  protection  in  CEECs  increased  since  the  mid-
1990s,  partly  because  of  CAP  imitation  in  anticipation  of  accession,  and  partly  because  of  domestic  political
pressure  from  CEEC  farms.  Third,  the  appreciation  of  real  exchange  rates  in  the  CEECs  further  reduced  the
nominal price gap between CEECs and EU, and hence the production and trade effects of enlargement.
Increased  production  in  CEECs  following  enlargement  implies  more  subsidised  exports  –  a  circumstance  that
may  conflict  with  WTO  commitments.  However,  that  accession  is  less  likely  to  create  a  conflict  with  WTO
commitments  than  initially  feared,  although  several  factors,  such  as  the  evolution  of  CEEC  productivity,  world
markets, and exchange rates, remain uncertain. Rather, the likelihood of a WTO conflict will depend more on the
outcome of the negotiations in the WTO millennium round. If, as a result of a new WTO agreement, the EU needs
to significantly reduce export subsidies or change the implementation of the direct payments, the CAP will need to
be reformed, irrespective of enlargement.
This said, the interaction between enlargement, WTO millennium round negotiations, and possible further CAP
reform is complex. The dairy sector well illustrates this complexity. The current quota system will remain in place
at least until 2006 and there is a legal commitment that some quotas will remain until 2008. Therefore, even if the
EU decides to liberalize the dairy regime, either for internal political reasons or as a result of the WTO millennium
round, a complete removal of dairy quotas cannot take place before the first enlargement round, expected around
2005. Consequently, even with substantial dairy reforms either the EU must implement quotas in CEECs, or it
must manage, at least temporarily, a quota regime in the EU-15 with a no-quota regime in CEECs, presumably
within a single market. In addition, policy makers must address the issue of compensation payments to CEEC

10 Source: European Commission
11 Source: Mac Sharry Reform and Agenda 2000

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dairy farms. These difficult policy decisions are caused by the failure of the 1999 Berlin Council meeting to agree
on further reforms in Agenda 2000, particularly for dairy.

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Balance12 of the agricultural products in the CEECs in 2000
Beef – Veal
Oilseeds
(103t)
(103t)
-9
104
-3
172
-1
30
-1
-2
29
0
9
10
54
-83
-9
-45
3
-16
4
0
75
170

Cereals
(106t)
0.37
Bulgaria
0.01
Czech Republic
-0.15
Estonia
0.62
Hungary
-0.10
Latvia
-0.10
Lithuania
-3.45
Poland
-0.79
Romania
-0.68
Slovak Republic
-0.49
Slovenia
Total
-4.75
Source: Prospects for Agricultural Markets 2000-2007
* Production and domestic use include sheep and goat milk, around 100 000 t annually

Milk
(103t)
-6*
420
153
5
10
546
350
188
161
123
1950

Pig
(103t)
2
-4
-14
95
-26
-8
100
10
-11
-19
125

Poultry
(103t)
-15
-3
-13
196
-13
-9
25
-51
-3
6
120

Sheep – Goat
(103t)
6
0
0
3
0
0
2
0
2
0
13

Perspectives and projections of the balance12 of agricultural products in the CEECs for 2007

Cereals
(106t)
1.59
Bulgaria
1.00
Czech Republic
-0.11
Estonia
4.25
Hungary
0.01
Latvia
0.08
Lithuania
1.39
Poland
1.75
Romania
0.70
Slovak Republic
-0.36
Slovenia
Total
10.30
Source: Prospects for Agricultural Markets 2000-2007
* Production and domestic use include sheep and goat milk, around 100 000 t annually

Beef – Veal
(103t)
-5
-14
-1
-20
37
9
40
2
4
2
52

Oilseeds
(103t)
102
198
36
27
0
10
153
-30
72
0
567

Milk
(103t)
-6*
333
198
-33
87
584
111
143
208
87
1712

Pig
(103t)
2
-8
-14
140
-26
-7
183
20
79
-29
250

Poultry
(103t)
-8
2
-14
231
-11
-14
-11
-54
38
-1
116

Sheep – Goat
(103t)
-1
0
0
3
0
0
2
0
2
0
7

12 Balance = Internal Production – Internal Consumption

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1.4 

Energy balance

Farming methods have evolved considerably with mechanisation. Although animal traction is still used in some
areas,  tractors  have  become  the  norm  amongst  producers  of  field  crops.  Livestock  units  are  also  increasingly
dependent on energy consuming machinery. The picture in the energy sector varies from country to country, but
it  generally  remains  heavily  dominated  by  public  sector  monopolies.  Although  a  great  deal  of  legislation  is
scheduled  or  in  draft,  much  work  remains  to  be  done  in  this  sector  and  the  restructuring  of  existing  legal  and
industrial structures will have major economic and social implications.  The enlargement process is expected to
assist in the increase of agricultural machinery energy efficiency in the CEECs by creating incentives to replace
obsolete units with modern highly efficient ones. The price of energy and fuel on the other hand is expected to
decrease  because  of  trade  liberalisation  and  competition  which  as  a  result  will  increase  the  efficiency  and
productivity of the CEEC agricultural sector.
In Estonia during the second quarter of 1997, compared with 1995 energy and fuels (base year) became more
expensive  by  87.3  percent  this  has  created  a  large  pressure  in  agricultural  production  since  most  of  the
machinery used are obsolete and very energy consuming. In order to increase energy efficiency, the Estonian
government adopted the National Energy Conservation Programme in January 2000.  As regards  the internal
energy  market,  Estonia,  Latvia  and  Lithuania  decided  in  February  2000  to  create  a  Common  Baltic  Electricity
Market (CBEM) as well as to establish power transmission links between the three countries. This constitutes an
important  step  as  a  preparation  for  the  internal  energy  market,  also  in  view  of  the  current  absence  of
interconnections with the EU. The Estonian and Latvian governments signed a co-operation agreement between
Eesti Energia and Latvenergo in May 2000. The content of possible cooperation is under negotiation.
In Latvia since independence, both price structures and production costs have changed dramatically. Prices for
energy increased significantly which, in conjunction with a lack of liquidity for many farmers, is one reason for the
decline in the use of fuels. The beginning of the nineties spotlighted both the local and international scale of the
use  of  environmentally  friendly  energy  sources  and  transport  which  although  still  at  an  relative  small  scale  in
Latvian agriculture are gaining pace. Between 1991 and 1996, agricultural incomes suffered from a severe price-
cost squeeze in Lithuania. This occurred because the prices, especially energy, were liberalized at an early stage
in the reform process, while at this stage food processing remained subject to government regulation. Lithuania
has  undertaken  crucial  steps  to  reform  the  energy  sector  that  still  bears  the  hallmarks  of  the  previous  system
from which Lithuania gained its independence a decade ago. The restructuring of the electricity and gas sectors
was initiated. An ambitious programme of privatisation of hitherto State-owned electricity, oil and gas utilities was
started.    The  large  size  of  loan  and  equity  funding  required  to  modernise  existing  conventional  capacities  to
improve efficiency and environmental compatibility can only be met by attracting strategic investments.
Bulgaria’s energy sector is dominated by electricity generation and accounts for some
15% of GDP. Per capita energy usage is three to four times higher than the EU average and there is a need for
further implementing legislation to complement the Energy and Energy Efficiency Law if Bulgarian legislation is to
be  compatible  with  the  acquis.  In  the  agricultural  sector  the  machines  obtained  after  the  distribution  of  former
cooperative  property  were  obsolete,  thus  they  are  very  energy-consuming.  At  this  stage,  the  purchase  of  new
machines and equipment by farmers is almost impossible because of their high prices and the lack of available
funds. Bank credits are unacceptable for farmers because of their unfavourable interest rates.
In Hungary in the past few years the agricultural sector’s consumption of every type of fuel was seen to decrease
very substantially in the first half of the 1990s in comparison with average values recorded between 1986 and
1990.
This decline in the use of energy (agricultural chemicals and energy) has greatly exceeded that of outputs; thus,
the conclusion can be drawn that agricultural production has taken on a more extensive, and at the same time
less  environmentally  polluting  character.  On  examination  of  the  conditions  prevailing  in  Hungary,  no  omission
should  be  made  of  the  important  fact  that  in  the  past  decades  energy  prices,  which  were  previously  kept  at
artificially low levels by means of state subsidies, have now undergone the transformation to market prices. In
practice, with respect to agriculture among the other sectors, this has resulted in considerably higher prices for
energy and fuel. This encourages increased thrift with regard to the use of materials and energy; consequently, it
may be ascertained that in the conditions currently prevailing in Hungary, even the enforcement of market prices
has increased the energy efficiency of the agricultural sector.

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The 1990s were a period of high inflation in Poland. Increase in prices in the years 1990-98 reached the level of
about 800 percent. Such high inflation had a very bad impact on the farmers’  welfare. Sums obtained in one year
from  selling  crops  were  not  sufficient  to  purchase  means  of  production  in  the  following  year.  The  economic
situation of farmers worsened. This was because the increase in fuel prices was higher than that in output prices.
In the 1990s, the economic conditions got better in crop production but worsened in animal production.
Transition had a strong impact on agricultural output in Slovakia too. The disparity of prices between agricultural
products and fuels depressed farm profits. Production was compelled to adjust to the slow-down of financial flows
and  the  poorer  availability  of  investment  and  operating  capital  due  to  a  declining  support  for  agriculture.  The
disparity in the performance between fuel and output prices had a very negative impact on profitability. Energy
prices  doubled  in  the  first  two  years  of  transition  from  1989  to  1990,  whereas  output  prices  virtually  remained
unchanged. Until 1997, the prices for agricultural products increased only slowly to 160 percent of the 1989 level.
At the same time fuel prices had skyrocketed to 350 percent. Slovakian producers were severely affected by the
widening of the cost-revenue scissors. The decline in overall energy value was less marked than the decline in
overall output value. The disparity in the development of energy and output value was mainly due to the rapid
increase of fuel prices and the high share between fixed costs. The disparity of prices of agricultural products and
fuel widened rapidly in 1991 and 1992 and provoked heavy losses in the whole agricultural sector. Since 1993,
the gap narrowed slightly again and since 1994 energy and output value has increased more or less in parallel.
Price scissors opened between almost stagnating farm gate prices and jumping fuel prices (of 69 percent) during
the first three years of the reform in Czech Republic too. In reaction to such a dramatic price change, agricultural
producers reduced rapidly the consumption of fuels. Since 1994, the price development of agricultural outputs
and  energy  market  has  been  parallel  and  the  consumption  of  intensification  fuel  slightly  increased.  In  January
2000,  the  Government  approved  the  Czech  Energy  Policy  as  a  document  for  long-term  sectoral  strategy  (an
outlook  for  the  next  15  –  20  years)  related  to  the  Economic  Strategy  of  entry  to  the  EU.  The  policy  places
emphasis on: the objectives of environmental protection and respect for principles of sustainable development,
the safety of the energy supply and support for the competitiveness of the economy.
Summarizing it can be said that in general the energy consumption efficiency in the CEECs is considerably low in
the agricultural sector due to ageing machinery inherited from the previous economic system’s state controlled
agricultural production units.  Prices have increased dramatically during the first years of transition to the market
economy  because  of  the  abolition  of  distorting  state  price  subsidies.    These  two  factors  have  affected  the
competitiveness  and  the  efficiency  of  the  agricultural  sector  in  all  of  the  CEECs.    The  EU  is  expected  to  take
measures  to  improve  the  energy  efficiency  of  the  agricultural  sector  in  the  CEECs  and  at  the  same  time  the
enlargement process is expected to create the economic environment that will decrease the price of energy and
fuel.

1.5  Transport

Since the transition of the CEECs to the market economy there have been some efforts in order to reconstruct the
necessary infrastructure. Also through the extension of the trans-European networks to the CEECs, their markets
will have an easier and quicker access to the Mediterranean and northern ports of the EU, which will help them to
export their products also outside the EU. In the transport area, the impetus given by the Europe agreements is
particularly  marked.  Specific  mandates  to  conclude  bilateral  agreements  with  certain  CEECs  in  one  or  other
transport  sector  have  been  presented  to  the  Council  and  in  one  case  agreed.  These  will  offer  the  prospect  of
market  access  and  lay  down  conditions  under  which  international  transport  services  can  be  offered.  They  will
thus offer strong incentives for legislative harmonisation prior to accession.
The CEECs participation in various international agreements tends to help the approximation process. On April
1st 2000 the European Commission’s DG Regio-Ispa Directorate officially started its work: to help financially to
improve the major environmental and transport infrastructure in the ten Central and East European countries that
applied for EU membership. Ispa will have until 2006 an annual budget of about 1.058m  €  (expressed  in  2000
price). Projects which encourage sustainable forms of moving people and goods, in particular projects which are
of  Community  interest,  and  projects  which  enable  the  countries  concerned  to  meet  the  objectives  of  the
Accession  Partnerships.  This  will  include  providing  good  connections  between  the  Trans-European  transport
Networks and road and rail corridors (identified at the Helsinki and Crete Conference) in the applicant countries
and interconnections between national networks and links from them to the Trans-European transport Networks.

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This  will  call  for  major  investments.  Ispa  will  therefore  be  contributing  to  funding  the  development  of  railways,
roads, ports and airports, taking into account requirements for sustainable transport and modal change. Over the
period  from  2000  to  2006,  a  total  of  1  058  million  €  a  year  (at  2000  prices)  is  to  be  divided  equally  between
environmental  and  transport  infrastructure  projects.  The  allocation  of  Ispa  resources  among  the  recipient
countries  has  been  decided  by  the  Commission  using  criteria  based  on  population,  per  capita  GDP  (in
purchasing power parity terms) and land surface area.  The Transport Infrastructure Needs Assessment (TINA)
process  is  designated  to  initiate  the  development  of  a  multi-modal  transport  network  within  the  territory  of  the
candidate  countries  for  accession:  Estonia,  Latvia,  Lithuania,  Czech  Republic,  Slovakia,  Hungary,  Poland,
Slovenia, Romania, Bulgaria, and Cyprus. The first structured dialogue between the Transport Council and the
Transport  Ministers  of  the  associated  countries,  in  September  1995,  recommended  inter  alia  undertaking  a
Transport Infrastructure Needs Assessment for the candidate countries for accession.  This TINA process has as
a  goal,  based  on  elements  of  the  transport  network  of  the  candidate  countries,  defining  the  future  Trans-
European Transport Network in the enlarged European Union. To advance and to monitor the TINA process, the
Commission  established  a  Group  of  Senior  Officials  (The  Group)  from  all  Member  States  and  the  candidate
countries.
On this basis the Bulgarian authorities have elaborated a medium-term investment programme for development
of the national transport infrastructure and a Transport Sector Strategy for 2000-2006, setting out project priorities
and  costs  of  necessary  investments  relating  in  particular  to  the  Pan-European  transport  corridors.  The  long-
standing  issue  of  a  second  bridge  across  the  Danube  to  Romania  has  been  resolved,  with  an  agreement
between  Bulgaria  and  Romania  in  February  2000  regarding  its  location.  A  technical  agreement  on  financing,
organisation and design was signed in June 2000. The resolution of this issue was greatly facilitated through the
Stability Pact process. On land transport further progress is required in relation to transparency, simplicity and
equality of application of road taxes and charges. Present Bulgarian fiscal legislation still does not comply with the
EC acquis: the legislation remains complicated, lacks transparency and some of its aspects appear discriminatory
toward Community operators. While Bulgaria has taken encouraging steps in rail restructuring, the delay in new
legislation is slowing the speed of this. As regards air transport further alignment is required in the fields of air
safety, technical harmonisation, market access rules and tariffs.
Czech  Republic,  in  July  2000  established  the  State  Transport  Infrastructure  Fund  .on  the  basis  of  an  Act
approved  by  Parliament.  The  Fund  forms  the  basis  for  participation  in  EC  structural  aid.  As  regards  transport
infrastructure,  the  state  budget  for  2000  set  aside  the  same  percentage  of  GDP,  1.36%,  as  in  1999  for  the
modernisation  of  the  stretches  of  the  Pan-European  Transport  Network  in  Czech  territory,  but  at  the  cost  of
higher credit and delays in the timing of construction.  In road transport infrastructure, some progress has been
made  in  linking  the  Czech  Republic  to  the  trans-European  Network  by  speeding  up  construction  of  the  D5
motorway (from Prague to Nuremberg), around Plzen and by building the D8 motorway (connecting Prague to
Dresden and Berlin), both part of  Pan-European Transport Corridor IV. In Hungary, in the area of road transport,
there is, despite progress, a need to further align to the community level. The new restructuring programme for
the state railways should become a basis for speeding up alignment in the sector. Any further delay should be
avoided. The administrative capacity of Hungarian railways should be further developed.
In  Cyprus  noticeable  progress  has  been  made  in  the  field  of  land,  air  and  especially  as  regards  maritime
transport. However, concerning horizontal issues, there is very little progress to report other than the completion
in October 1999 of the Transport infrastructure Needs Assessment (TINA) process, in which Cyprus participated.
Cyprus has approved the Final Report that should form the basis for extending the Trans-European Networks to
Cyprus. Within this framework, Cyprus had proposed the inclusion of its ports, its airports and a number of its
highways in the extension of the Trans-European Networks. Concerning maritime transport, at the beginning of
2000 the Government introduced a new, more restrictive policy for the registration of Cypriot ships, to enhance
the quality of the Cypriot flagged fleet and to improve its overall safety record.
Estonia also has made considerable progress in completing the legislative framework in the transport sector. In
relation to horizontal issues, Estonia has approved the final report on Transport Infrastructure Needs Assessment
(TINA)  of  October  1999  that  should  form  the  basis  for  extending  the  trans-European  networks  to  Estonia.  As
regards land transport, provisions regarding public service obligations to be met by public transport, state aids to
public transport and the conditions of access to the transport services market for enterprises have been adopted.

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In  addition,  rules  on  state  aids  as  well  as  an  accounting  system  for  infrastructure  for  railway,  road  and  inland
waterway  transport  have  been  issued.  In  the  area  of  road  transport,  the  new  Road  Transport  Act,  adopted  in
June 2000, regulates national and international transport of goods and non-professional passenger transport. It
also provides the basis for a number of items of secondary legislation including fiscal issues and the international
transport licences system. In addition, it introduces for the first time in Estonia the concept of combined transport.
Hungarian policy in the field of transport infrastructure already takes into account the objectives and priorities of
the  Community  guidelines  on  the  Trans-European  Transport  Network  (TEN-T)  and  the  requirements  on  TEN
financing.  In  the  area  of  road  transport,  there  is,  despite  progress,  a  need  to  further  align  throughout  the
subsector with, among others, particularly the provisions on market access, fiscal matters, social legislation and
technology, safety and environment (e.g. maximum weights and dimensions). The new restructuring programme
for the state railways should become a basis for speeding up alignment in the sector. Any further delay should be
avoided.
The Lithuanian legislation in the transport sector already complies to a certain extent with the EC acquis, although
there is still a considerable number of technical details  which are to be implemented over the next few years on
the basis of the ministerial  Strategic Plan and Objectives for Transport and Communications Sectors until 2010.
On horizontal issues, Lithuania rightly gives the main emphasis to the further modernisation and development of
the priority transport infrastructure along Corridors I and IX, which is of particular importance for a transit country
like Lithuania. The regulatory efforts on land transport legislation will have to concentrate more and more on the
transposition  of  the  technical  provisions  of  the  EC  acquis  and  its  implementation,  with  technical,  safety  and  in
particular  fiscal  harmonisation  as  key  issues.  In  general  the  Lithuanian  Government  follows  here  a  realistic
implementation schedule, but certain delays e.g. on fiscal harmonisation and railway restructuring indicate that
efforts should be made to maintain the ambitious rhythm of implementation measures.

1.6  Harmonisation of technology standards

The CEECs are faced with the trend towards the globalisation of the world economy. Their integration into the
Single Market will confront them with the elimination of barriers between national markets. Although the adoption
of Single Market legislation on technical harmonisation will cause a lot of difficulties to the CEECs, it is important
that they achieve this goal, because the increase in trade will help improve their economic situation.  In that way
their agricultural product markets will become more competitive.
The coherence of the Internal Market, which includes the maintenance of a high level of consumer protection,
requires the adoption by new Member States of the acquis communautaire in the area of the free movement of
animals and agricultural products within the Union. Full implementation of the acquis, leading to the abolishment
of  internal  borders,  would  require  not  only  the  harmonisation  of  legislation,  but  also  an  adequate  control  and
inspection infrastructure in the candidate countries to enforce the acquis both domestically and at the external
borders. Adequate implementation and enforcement of these requirements in the candidate countries is essential
for the protection of plant, animal and public health in an enlarged Union as a whole and must be accomplished
before free movement of agricultural products without border control can be established. The implementation of
these measures will require additional investment in inspection and testing facilities in the public sector, as well as
substantial  investment  in  the  private  sector  for  upgrading  of  establishments  in  the  food  industry  to  meet  EU
requirements  and  standards.  The  Commission  has  maintained  regular  contacts  with  the  associated  countries
during the preparation of the White Paper. It first convened a meeting of six CEECs in November 1994, at which it
explained its proposed approach and received presentations from each associated country about the state of its
own  work  on  approximation,  as  well  as  comments  on  the  approach  to  be  taken  by  the  White  Paper.  In
accordance with the Essen conclusions, the Commission consulted the CEECs on a bilateral basis; in addition,
the  Commission  has  a  continuing  dialogue  with  each  associated  country  in  the  approximation  of  law  Sub-
Committees of the Europe agreements. These provide an opportunity to gather information on the progress being
made in the CEECs. However, in planning future technical assistance in this area, it is necessary to understand in
general terms the extent to which the CEECs have harmonized their legislation with that of the Community and
have created the structures required to implement and enforce such legislation and to examine in broad terms
where their problems lie.

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The associated countries are in the process of preparing and adopting a large amount of new legislation and it is
their general aim that this should be in conformity with that of the Community. Indeed, they have an obligation to
use  their  "best  endeavours  to  ensure"  this  under  the  Europe  agreements.  In  approaching  the  task  of
approximating legislation, however, each CEEC has made its own choices about priorities. Their choices reflect
economic and political realities, particularly the CEECs' growing trade relations with the Union, as well as their
judgements  about  which  legislation  is  important  in  the  context  of  economic  transition  and/or  preparation  for
accession to the Union. They have also responded to the list of priorities for approximation specifically mentioned
in  the  Europe  agreements.  Some  of  them  have  also  assumed  other  international  obligations  which  affect  their
priorities. Moreover, certain associated countries started their processes of legislative harmonization with a view
to Community membership well in advance of others.
In a limited number of sectors, the new law is almost complete, while in others legislation may be scheduled but
not yet drafted. A very large amount of new law is being drafted, or is awaiting adoption by national Parliaments.
The state of progress in a given sector does not necessarily reflect its economic importance. In some areas, the
CEECs themselves recognise that enacted or prepared legislation does not conform fully with the relevant EU
texts, either as a deliberate choice (step by step approximation) or as a result of amendments introduced during
the  passage  of  the  legislation  through  Parliament.  In  certain  cases,  there  has  been  a  deliberate  decision  to
suspend new legislation awaiting new or modified Community legislation in the field. In most but not all associated
countries,  parliamentary  timetables  are  over-charged  and  delays  result.  The  legislative  burden  is  huge,  the
changes are often radical, the subject matter is sometimes unfamiliar, amendments to texts are numerous and
progress is slow. Moreover, in the CEECs, as elsewhere, governments and political priorities change, which can
also complicate and prolong the approximation process.
The  possibility  of  the  conclusion  of  Mutual  Recognition  Agreements  held  out  by  the  Europe  agreements  will
encourage  further  efforts  in  this  field.  (Further  consideration  of  this  area  is  in  the  section  below  concerning
progress with creating implementation and enforcement structures). Progress in the area of agriculture (where
the legislation relevant to the internal market concerns the veterinary, plant health and animal nutrition fields and
agricultural  commodities  subject  to  specific  marketing  standards,  such  as  wine)  reflects  the  importance  of  the
sector  in  the  economy  of  the  associated  country  concerned,  as  well  as  following  closely  its  specific  product
interests. All the CEECs have recognised that consumer protection requires some legislative intervention as part
of  their  transition  to  market  economies.  The  functioning  of  the  internal  market  is,  at  least  in  part,  linked  to  the
approximation of rules in this sector. Moreover, this new recognition of the rights of consumers, ensuring their
participation in decision-making, is also perceived as a contribution to the consolidation of democratic societies in
the  associated  countries.  Specific  consumer  legislation  has  been  adopted  or  is  under  preparation  in  all  the
CEECs and consumer policy aspects are often also covered in other sectoral or horizontal legislation.
Compared to other countries, Slovenia's civil service is small, because the country is small, but the amount of
work  needed  for  legal  and  technical  harmonization  with  the  EU  is  approximately  the  same  for  all  countries,
regardless  of  their  size.  This  means  that  there  has  been  slow  progress  in  regard  to  the  harmonisation  of
technological  standards  because  the  amount  of  work  needed  has  overwhelmed  the  Ministry  of  Agriculture,
Forestry  and  Food  and  related  organizations  and  institutions  as  far  as  harmonization  of  legislation  and  pre-
accession work in general are concerned.
In Bulgaria in the area of horizontal and procedural measures the adoption in September  of 1999 of the Law on
Technical Requirements for Goods established a horizontal legal framework to take on board all the principles of
the ‘New and Global Approach’. This Law, however, is not entirely in line with the acquis, an issue which will need
to be resolved soon. Together with the Law on National Standardisation in force since September 1999 and the
Ministerial Decree creating the Bulgarian Accreditation Service in December  1999, the legal framework has been
established  for  the  functional  independence  between  technical  regulation,  standardisation,  accreditation  and
certification (including testing and control). Mandatory prior controls of industrial goods (including border control
on import) were abolished as of 1 January 2000, providing for free access and equal treatment on the basis of a
voluntary standardisation regime. The adoption of European Standards is proceeding at a good pace. The Law
on  Foodstuffs  was  adopted  on  September  1999,  setting  up  the  framework  for  the  adoption  of  secondary
legislation.  The  transposition  of  directives  on  labelling,  hygiene,  official  controls,  contaminants  and  material  in

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contact  with  foodstuffs  is  under  preparation.  The  administrative  capacity  of  the  Ministry  of  Health,  which  is  in
charge of preparing secondary legislation, should be strengthened.
The transformation of the Cypriot legal system in this area, aiming at full integration into the EU system as well as
its  implementation,  requires  adaptation  of  the  legislation  and  a  different  institutional  infrastructure.  This  implies
that the existing administrative capacity needs to be reinforced and well-equipped in order to ensure application
and  enforcement.  Cyprus  has  already  a  clear  understanding  of  the  principles  and  legislation  covered  by  EC
directives on products. However, continuing serious efforts are required to transpose and implement the  acquis
as far as possible prior to accession. The sector specific Cypriot legislation in a number of areas covered by the
New  Approach  Directives,  is  significantly  different  from  that  applied  by  the  EC.  In  other  fields  no  national
legislation exists at all. Therefore Cyprus is in the process of adopting a framework law on the principle of New
Approach  Directives  and  implementing  regulations  covering  different  product  groups.  In  the  1999  Accession
Partnership,  continuing  to  strengthen  administrative  structures  in  particular  on  standards,  certification  and
accreditation  and  continuing  with  the  transposition  of  New  Approach  Directives  were  identified  as  short-term
priorities.
The Cyprus Organisation for Standards and Control of Quality takes part as an observer in the European Co-
operation for Accreditation. As regards foodstuff legislation, further efforts are needed for the transposition of the
acquis in this area. The Ministry of Health is responsible for the implementation of foodstuffs legislation. In the
field of official control of foodstuffs, for Health Inspectors provisions are foreseen for further training at the local
level as well as in other European countries. An important effort to strengthen the administrative capacities in this
field  needs  to  be  made.  Concerning  veterinary  and  phytosanitary  legislation,  transposition  of  the  acquis  is  still
partial. Cyprus should further align its veterinary and phytosanitary legislation with the acquis as well as upgrade
inspection arrangements, in particular at future external borders, as this was identified as a short term priority in
the  Accession  Partnership.  In  the  veterinary  sector,  in  the  field  of  animal  disease  control  measures,  Cyprus
laboratories  are  capable  of  carrying  out  serological  diagnosis  regarding  notifiable  viral  diseases.  Contingency
plans, such as for food and mouth disease and classical swine fever, should be developed. As for phytosanitary
issues, the border inspection posts,  inter alia, will have to be equipped with laboratory facilities for initial on the
spot examination of imported produce. The process of preparing Cyprus’  agriculture for the Common Agricultural
Policy needs to be continued, notably regarding the establishment of the necessary administrative and structural
procedures. This concerns, in particular, the import and trade of animals and animal health as well as plant health
and plant quality.
Although considerable progress in can be stated in Estonia, much work remains to be done in the veterinary field.
This  includes  an  approximation  of  the  legislation  as  well  as  laboratories  facilities  and  the  establishment  of  a
sufficiently equipped official veterinary service, including the effective control of trade at border inspection points.
The approximation of legislation in the field of animal nutrition is in an initial stage. As regards plant protection
products and organic farming, legislation is not yet harmonised with EC legislation, but work on the adoption of
the legislation has been initiated. In relation to  quality policy, the Act on Protection of Geographical Indications,
which  entered  into  force  in  January  2000,  constitutes  a  first  step  to  implement  EC  legislation  as  regards
designations  of  origin  and  protection  of  geographical  indications.  However,  the  law  is  not  fully  in  line  with  the
acquis.  The  new  Bureau  of  Environment  which  was  established  within  the  Ministry  of  Agriculture  in  April  is
responsible inter alia for the promotion of organic farming.
The Czech Republic has made significant progress, building on a solid basis that was already acknowledged in
last year’s  report  and  which  permitted  further  harmonisation  in  the  field  of  the  New  and  Global  Approach.  The
adoption of the amendment to the Act on Technical Requirements for Products has  created the conditions for
further alignment of Czech legislation in this field. In the veterinary field, the new Veterinary Act entered into force
in  1999.  It  covers  conditions  for  veterinary  care,  identification  and  registration  of  animals,  animal  welfare  and
conditions for animal trade. Several implementing Decrees have been issued. The new Veterinary Act does not
ensure full transposition of all Community Directives in this field. An Act on Livestock Improvement, Breeding and
Registration (Breeding Act) was adopted in May 2000. It changes the structure and organisation of the livestock
improvement and breeding process and is a step towards alignment with EC legislation. In the phytosanitary field,
an amendment to the Act on fodder was adopted in 2000,  bringing legislation on animal nutrition further in line

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with the acquis, although some gaps still remain in the area of inspection.  The new amendment stipulates rules
for the production, use and circulation of fodder and additives, including supervision and sanctions.
In the area of horizontal and procedural measures, Hungary accelerated the adoption of European standards as
Hungarian national standards in line with the Accession Partnership priorities. Concerning the veterinary field, the
existing framework legislation provides the legal basis for transposing most of the veterinary  acquis but further
amendments are required regarding the control system, compensation to farmers in the case of an outbreak of
disease and the reform of the statute of the veterinary professional activities. Work also remains to be done in
adopting  the  implementing  legislation  necessary  to  transpose  the  veterinary  public  and  animal  health,  animal
welfare and zootechnical legislation. As regards veterinary control in the internal market, the central database for
identification and registration of cattle meets all the requirements to record all cattle movements.  However, it is
not used to record any veterinary information, either animal or public health.  The State Veterinary Service should
have direct on-line access to the central database, which should also be used for establishing an epidemiological
surveillance network system.  Controls of the future external border of the EU are not yet in compliance with the
acquis.  In  the  field  of  control  of  animal  diseases  and  animal  health,  Hungary  still  needs  to    introduce  legal
provisions  for  compensating  farmers  in  the  case  of  an  outbreak  of  an  infectious  disease.  Hungary  has  largely
transposed the acquis in the field of animal welfare.
The overall result of the harmonisation of technology standards of the CEECs with the EU acquis is that there are
wide divergences among the CEECs in the amount and type of legislation that has been enacted and the order in
which they are approaching the task. In all cases, the CEECs have begun to make a systematic effort to draw up
programmes for legislative approximation, to set priorities and to verify conformity with relevant Community law.
The general picture is one in which old legislation, sometimes dating back many years, exists alongside new. But
if  the  harmonisation  of  the  technology  standards  of  the  CEECs  with  those  of  the  EU  is  not  achieved  their
integration will be greatly hampered as the single market could not function and trade barriers within the enlarged
EU will have to be lifted.  Otherwise great dangers could exist in regard to health and environmental issues in
existing EU members.

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2. 

Social dimension

2.1  Employment

Although the idea of a reunited Europe is mythical, it is one that has clearly had real importance as a lodestone to
point the way out from under the previously centrally planed system. In this understanding, the values perceived
to  be  associated  with  united  Europe  underpinned  and  effectively  legitimised  the  democracy  movements.  The
problems then came during the period of transition when the achievement of the perceived values was found to
have a much higher cost than had been anticipated, with the consequence that to a greater or lesser extent the
values  themselves  have  been  called  into  question,  and  even  compared  unfavourably  with  some  of  the  values
expressed by communism. This is most apparent in the concern over the loss of social protection and cohesion to
pay for individual economic freedom. Agriculture is relatively more important in the candidate countries than in the
EU  in  terms  of  employment.  On  average,  over  22%  of  the  work  force  is  employed  in  agriculture,  i.e.  a  total
number 9.5 million, compared to only slightly more than 4 percent of total employment or 8.2 million in the EU,
and has declined on average by 3.2 percent annually over the past decade. The agricultural labour force for the
existing  EU  could  be  expected  to  at  least  double  with  the  enlargement,  with  the  average  available  agricultural
area  per  person  employed  in  the  candidate  countries  being  9  ha  compared  to  21  ha  in  the  existing  EU.  The
enlargement process is expected to homogenise the trends in the CEECs with those of existing members of the
EU,  this  is  to  say  reduce  the  percent  of  the  population  employed  in  the  primary  sector  of  production.  This  of
course must be done in such a way as not to increase the unemployment levels of those counties further.
The  size  of  farm  holdings  is  an  important  aspect  in  maintaining  employment.  The  smallest  holdings  bring  little
added  value  to  the  agricultural  sector,  but  they  still  represent  a  significant  pool  of  employment.    That  is  why
different ways of maintaining small agricultural holdings as well as diversifying their income should be examined.
Some  effort  should  be  made  to  align  labour  and  public  health  legislation  with  job  security  and  to  developing  a
social dialogue. Also, certain changes will be needed in order to prevent the reduction in the number of farms of
CEECs,  while  making  them  more  competitive  and  productive,  by  increasing  for  example  production  capacity,
rationalising existing farm structures and developing alternative activities.
The  weakening  of  large-scale  enterprises  (not  only  in  agriculture)  by  the  introduction  of  the  market  economy,
privatization  and  other  legal  measures,  the  breakdown  of  agricultural  production  and  constraints  to  higher
efficiency led to a huge share of unemployed people especially in the countryside. It may seem strange that this
attendant phenomenon of system change in many CEECs a so far has not, or rarely, led to a discharge of social
tensions.  However,  it  remains  unsure  for  how  much  longer  the  lack  of  an  adequate  social  security  net  can  be
endured – lethargy in the agricultural society of Eastern Europe cannot last forever. In the area of social policy,
the associated countries believe that much of their legislation is close to meeting EU standards and they appear
to  attach  considerable  importance  to  this  sector.  Emphasis  is  put  on  legislation  on  health  and  safety  in  the
workplace  in  most  of  the  CEECs.  The  question  of  costs  is  once  again  a  determining  factor,  however,  and  it
remains to be seen to what extent even legislation which is already in place can be effectively implemented.
In Poland employment in agriculture is still high (26.9 percent) and is changing very slowly. From among over 2
million family farms, only 25 percent are relying entirely on agriculture and around 40 percent receive their main
income  from  agriculture,  although  30  percent  of  farmers  gained  most  of  their  income  from  non-agricultural
activities and from social security. The continuing high rate of unemployment in the economy (13.7 percent) limits
the  possibility  of  a  migration  process 
increasing  costs  of
transportation/commuting,  as  well  as  housing  problems,  form  barriers  to  undertaking  employment  outside
agriculture. The improvement of the education system in rural areas will help young people from villages to find
non-farm-related  jobs.  A  favourable  characteristic  of  labour  resources  in  Polish  agriculture  is  the  considerable
share of young farmers, which is higher than in European Union (EU) countries.
The  socio-economic  situation  in  Bulgaria  is  poor  and  difficult.  Living  standards  have  declined  in  recent  years.
According to official figures, about 25% of Bulgarians live below the poverty line and the financial restrictions in
state budgets create difficulties for implementing programmes to alleviate poverty. Current average salaries are
approximately ECU 90 per month while the average pension is ECU 26 per month. The average proportion of
incomes  spent  on  food  is  estimated  at  48%.  Poverty  affects  a  significant  part  of  the  population,  although
household plot production eases the situation for many families in rural areas. Official figures show 14% of the

to  other  (non-agricultural)  sectors.  The 

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population  have  registered  as  unemployed,  with  the  long-term  unemployment  figure  continuing  to  increase.
Nevertheless, the overall situation may, in fact, be slightly better due to the size of the underground economy,
which  creates  a  certain  dynamic  but  makes  it  more  difficult  to  have  a  clear  picture.  Privatisation  and  the
adaptation  to  a  modern  market  orientated  economy  are  generally  acknowledged  as  the  solution  to  Bulgaria's
problems.  The  government  in  office  appears  to  have  the  political  will  to  continue  the  implementation  of  the
economic policy aiming to achieve these objectives. Progress has been made in the area of occupational health
and safety, inter alia by the adoption of legislation in the area of minimum safety and health requirements at the
workplace and for the use of work equipment. However, further legislative work is necessary.
A  very  strong  impact  on  the  social  situation  of  farmers  has  been  caused  by  the  development  of  the
macroeconomic and political environment, by the economic and property transformation and by a restructuring of
agriculture after 1989 in Czech Republic. In 1996, the decrease in agricultural employment, compared with 1989,
was 60 percent and farmers’  share of total Czech employment was 4.1 percent. Since the start of the transition
there has been a tendency towards a decrease in agricultural employment (a sharp decrease occurred in 1991
and  1992).  In  1996  agricultural  employment  reached  210  000.  Agricultural  employment  has  evolved  very
differently  in  various  ownership  types  of  enterprises.  Employment  has  decreased  sharply  in  government
enterprises  and  cooperatives  while  an  increase  has  occurred  in  limited  companies  and  in  individually  owned
enterprises.  In  spite  of  the  continuing  outflow  of  labour  from  agriculture,  people  leaving  agriculture  did  not
contribute  significantly  to  the  increase  in  national  unemployment  (the  rate  of  unemployment  in  agriculture  was
equal to the national unemployment rate which was 3 percent). Nevertheless there was disequilibrium in some
regional and, especially, microregional (rural) labour markets.
In Latvia the number employed in agriculture is high, about 18 percent of total employment. However, it should be
taken into account that many people do not choose to live in the countryside, guided by economic considerations.
In order to survive in the current economic situation, the transformation from self-subsistence farming to real farm
business  needs  to  be  made.  If  statistics  on  the  people  employed  in  agriculture  are  analysed  according  to  age
structure, one-fifth of agricultural employees are over 60; 42 percent are over 50; 19 percent are in the age group
below 30; and only 9 percent in the age group from 31 to 35. This also partly explains the poor mobility of the
rural population and the lack of adaptability to the new economic situation. At the same time, it should be pointed
out that most of the rural population have no other job opportunities although, until now, about 30 percent of the
population have been living in the country. Rural labour forces in Latvia are very immobile and for many people
rural  life  is  more  a  way  of  life  and  less  a  business.  The  claim  that  only  farm  size  should  increase  and  the
efficiency of farming will, therefore, also increase is not sufficient unless the diversification of the rural economy
also takes place.
In 1999, agriculture in Lithuania accounted for 8.8% of GDP, while in 1998 it accounted for 10.3% of GDP. The
agriculture  and  food  sectors  combined  represented  14.6%  of  GDP.13  Employment  in  agriculture  accounted  for
20.2%  of  total  employment  in  1999,  as  opposed  to  21%  in  1998.14  In  Hungary  the  share  of  agriculture  in  the
economy  continues  its  declining  trend,  representing  5.5  %15  of  the  GDP  and  employing  7.1%16  of  the  working
population.  The  structure  of  the  agricultural  sector  has  been  changing  in  the  past  few  years  and  recent  data
shows  that  in  2000,  the  agricultural  sector  included  nearly  960 00017  private  holdings  and  more  than  8 200

13  The source for all agricultural statistics is EUROSTAT unless otherwise specified.
14 

In  order  to  improve  consistency  and  comparability,  the  employment  figures  presented  are  now  defined  according  to  Labour  Force
Survey definitions (LFS). Agricultural employment is defined in LFS terms as economically active persons who gain a significant part
of  their  income  from  agriculture.  The  agricultural  census,  which  was  previously  a  source  of  employment  data  in  many  countries,
takes into account all persons nominally active on a farm. There are therefore some significant differences between previous and
new  figures.  Fuller  information  can  be  found  in  the  Eurostat  publication  “Central  European  Countries’  Employment  and  Labour
Market Review”  available free of charge through the Eurostat Data Shops.

15  The source for all agricultural statistics is EUROSTAT unless otherwise specified.
16 

In  order  to  improve  consistency  and  comparability,  the  employment  figures  presented  are  now  defined  according  to  Labour  Force
Survey definitions (LFS). Agricultural employment is defined in LFS terms as economically active persons who gain a significant part
of  their  income  from  agriculture.  The  agricultural  census,  which  was  previously  a  source  of  employment  data  in  many  countries,
takes into account all persons nominally active on a farm. There are therefore some significant differences between previous and
new  figures.  Further  information  can  be  found  in  the  Eurostat  publication  “Central  European  Countries’  Employment  and  Labour
Market Review”  available free of charge through the Eurostat Data Shops.

17  “Source: Preliminary data of the Hungarian Agricultural Census 2000”.

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enterprises engaged in agricultural activities (in 1991, there were 2 600 enterprises and 1 396 small units). The
state agricultural budget amounted to €  645 million in 2000.
Employment in Slovakia in agriculture (including forestry, hunting and fishing) has remained relatively constant
over the past years, accounting for about 15.3%  of total employment. 18 The labour market in the farm sector is
still under the pressure of the strongly reduced demand for farm labour. This has resulted in farm wages lagging
behind  the  general  evolution  of  wages  in  the  overall  economy.  The  most  recent  data  show  that  the  personal
income of farm labourers is only 80 percent of the national average. On the other hand, new opportunities in other
industries and the adverse development of many corporate farms generate an outflow of skilled managerial staff
from the farming sector. The situation in 1999 was particularly difficult for the agricultural sector and saw a decline
in  total  agricultural  output  by  9.7%  as  compared  to  1998.  The  sectors  mostly  hit  were  pig  meat,  milk,  fish  and
sugar production. The reasons for this situation can be partially found in the negative impact of the aftermath of
the Russian crisis, as well as increased exposure to international competition and low productivity.
In  summary  it  can  be  said  that  the  share  of  employment  in  agriculture  in  CEECs  is  relatively  high  with  the
exception  of  the  Czech  and  Slovak  Republics.  For  Poland  the  figure  is  above  25  percent,  for  Hungary  and
Slovenia above 10 percent. The effect of some of the outcomes of the liberalisation process, such as high levels
of  unemployment  in  Poland  and  Hungary,  inadequate  safety  nets  and  rising  consumer  prices  in  all  three
countries, and a rapid fall in agricultural profitability, production and employment has been a disillusionment with
the new set of values that has tended to undermine public support for reform. Behind the divergence of values,
and  subsequent  disillusionment,  lies  something  much  bigger:  the  collapse  of  an  entire  belief  system,  a  deeply
traumatic event for the peoples concerned.

2.2  Society

2.2.1  Development of rural social structure

In order to examine the development of rural social structure, the population composition has to be analysed, e.g.
the regional population’s tendency to ageing, or its capacity for renewal. This involves also an examination of the
farmers’  age, so as to estimate their capacity for innovation and how long a farm holding will persist.  Another
useful  element,  when  examining  the  development  of  rural  social  structure,  is  the  share  of  agriculture  in  a
country's GDP. This helps to understand agriculture’s contribution to regional wealth. One of the most important
actions  of  political  planning  in  most  CEECs  during  the  previous  economic  system  was  the  centralization  of  all
functions  of  rural  settlements,  including:  the  regional  distribution  of  the  working  and  residential  population;
administrative  and  educational  institutions;  the  localization  of  industrial  enterprises,  administrative  control  of
economic functions; regionalization of agricultural production and the limitation (or prohibition) of private activities.
The  most  important  features  of  "rurality"  are  still  agriculture  and  forestry.  The  EU  enlargement  process  is
expected to give special emphasis and assistance to the primary sector’s needs, which has been in a disarray
since the collapse of the previous system, if the multifunctionallity of agriculture is to be taken into account as well
as the development of the rural social structure in the CEECs.
In Latvia agriculture’s share in real GDP grew immediately after the transition process was initiated, and started
declining  about  two  years  ago.  This  was  the  result  of  a  deep  crisis  in  other  sectors  rather  than  of  retarded
agricultural  development.  After  restructuring  the  economy,  output  dropped  significantly  in  all  sectors.  In  1995
agricultural  output  reached  only  46.3  percent  of  that  in  1990  in  constant  prices,  while  manufacturing  output
dropped  as  low  as  28.8  percent.  This  shows  the  role  of  agriculture  as  social  catalyst  in  the  overall  economic
restructuring.  Fundamental  changes  have  taken  place  in  agriculture  which  has  had  more  success  than  in
industry,  thus  laying  a  good  foundation  for  future  development.  However,  it  should  be  taken  into  account  that
many people do not choose to live in the countryside, guided by economic considerations. In order to survive in
the current economic situation, the transformation from self-subsistence farming to real farm business needs to

18 

In  order  to  improve  consistency  and  comparability,  the  employment  figures  presented  are  now  defined  according  to  Labour  Force
Survey definitions (LFS). Agricultural employment is defined in LFS terms as economically active persons who gain a significant part
of  their  income  from  agriculture.  The  agricultural  census,  which  was  previously  a  source  of  employment  data  in  many  countries,
takes into account all persons nominally active on a farm. There are therefore some significant differences between previous and
new  figures.  Further  information  can  be  found  in  the  Eurostat  publication  “Central  European  Countries’  Employment  and  Labour
Market Review”  available free of charge through the Eurostat Data Shops.

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be made. If statistics on the people employed in agriculture are analysed according to age structure, one-fifth of
agricultural employees are over 60; 42 percent are over 50; 19 percent are in the age group below 30; and only 9
percent in the age group from 31 to 35. This also partly explains the poor mobility of the rural population and the
lack of adaptability to the new economic situation.
At  the  same  time,  it  should  be  pointed  out  that  most  of  the  rural  population  have  no  other  job  opportunities
although,  until  now,  about  30  percent  of  the  population  have  been  living  in  the  country.  Rural  labour  forces  in
Latvia are very immobile and for many people rural life is more a way of life and less a business. The claim that
only farm size should increase and the efficiency of farming will, therefore, also increase is not sufficient unless
the diversification of the rural economy also takes place.
After  the  political  changes  of  1989,  Romanian  rural  society  entered  an  extremely  controversial  new  agrarian
stage,  which  has  at  its  foundation  the  particular  way  of  transition  from  centralized  ex-socialist,  nationalized
agriculture to liberalized agriculture of the market-oriented type. The change from collective land ownership (the
most  extended  form  of  socialist  property)  to  private  land  ownership  of  about  64  percent  of  the  formerly
cooperativized agricultural land implies not only the transfer of land and exploitation into the hands of landowners,
but also the emergence of autonomous social actors (family exploitation representatives) and of new production
relations within the successor exploitation. Taking into account the events of recent years, it could be claimed that
the  privatization  of  Romanian  agriculture  coincides  almost  totally  with  its  decollectivization,  by  applying  Law
18/1991.  The  state  agricultural  production  sector  (about  20  percent  of  agricultural  land)  has  remained
approximately the same in ownership and way of organization (specialized farms, paid labour). The only changes
are the changing of production units into commercial agricultural companies with state capital (which bestows on
them  higher  flexibility  regarding  the  commercialization  of  the  products  obtained)  as  well  as  the  decrease  in
production (in many units up to half of the installed production capacity) owing to the general crisis of the system.
Poland is an extremely rural country, predominantly urban regions account for only 19% of the population. The
rural areas vary greatly in structure, economy and demography. Regions where state farms predominated tend to
have high unemployment levels and tend to be amongst the poorest in Poland. In voivodships where farms are
smaller,  rural  dwellers  activities  are  more  diversified.  Agriculture  accounts  for  44%  of  total  employment  in
predominantly rural regions. This extremely high level of agricultural employment is one of the biggest challenges
facing  Poland  as  it  seeks  to  modernise  and  restructure  the  agricultural  sector  without  destroying  rural
communities. Rural areas in Poland suffer from a number of constraints which restrict development and reinforce
rural  communities’ 
isolation  and  remoteness.  The  dispersed  settlement  pattern  makes  the  provision  of
infrastructure  (water,  gas,  telephones,  sewerage)  and  services  (post  school  education,  banking,  professional
services)  difficult,  and  lack  of  access  to  transport  in  rural  areas  only  exacerbates  the  disparities  with  urban
centres. In general, agriculture is less intensive in Poland than in most current EU Member States, and the rural
areas  support  a  rich  variety  of  wildlife  and  range  of  habitats.  Modernisation  programmes,  investment  and
education will also tend to increase the levels of inputs used, as farmers seek to increase productivity. Livestock
farming is an important sector of Polish agriculture, but stocking densities have declined considerably as a result
of  the  economic  transition  process.  27%  of  the  land  area  is  considered  to  be  in  a  "natural"  or  "extensively
managed" state, with approximately 11% designated as of international importance.
The agricultural labour force still holds a 26.7% share of the total employment. This high figure is inflated by a
certain  amount  of  underemployment  and  hidden  unemployment  in  rural  areas.  Nevertheless,  this  important
difference between GDP contribution and persons employed in agriculture indicates very low labour productivity
and reflects the importance of part-time farming. Since 1994 rural development has been increasingly recognised
as a priority by successive Polish Governments, due to the high levels of agricultural employment, the need to
modernise and develop agricultural practices and the need to create non-agricultural jobs in rural areas. In 1994,
it was one of the 10 key objectives included in the Government’s development plan. This "Strategy for Poland"
gave four objectives for rural development policy: village renewal including job creation and encouragement of
non-agricultural activities; encouraging the modernisation of agricultural structures and processes; supporting the
development of socio-economic infrastructure such as co-operatives, commodity exchanges, telephone and road
networks and the agricultural advisory service; and lastly recognition of the natural value of villages.
Hungary benefits from many natural features which provide favourable conditions for agriculture: fertile plains, an
advantageous climate, availability of water - the quantity of flowing water per inhabitant is said to be the largest in

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the  world.  Although  agriculture's  share  in  the  economy  has  decreased  in  recent  years,  it  is  still  significant:  in
1996, agriculture and forestry accounted for 6.6% of the GDP, and provided employment for more than 8% of the
working  population.  In  1996,  Hungary's  GDP  per  capita  was  about  36%  of  the  EU-15  average.  This  national
average masks considerable disparities between regions, and the same applies for unemployment. The role of
agriculture in employment is particularly important in the East and the South of the country, where it accounts for
more than 12% of regional employment. Around 40% of Hungary's 10.1 Mio inhabitants live in small towns and
villages, a share which has increased in recent years. The basic principles of a rural policy were approved by the
Government  in  1997,  as  part  of  the  National  Agricultural  Programme.  In  1997,  a  budget  equivalent  to  1.3%  of
Hungary's  GDP  was  allocated  to  agriculture.  While  this  does  not  include  rural  development,  allocations  for
structural measures including investment aid, rural credit subsidies, and per hectare aid in less favoured areas
are covered by this budget.
Agriculture  has  traditionally  been  one  of  the  most  important  sectors  in  the  Estonian  economy.  Before
independence, the primary sector employed 20 % of the labour force. In 1996, agriculture accounted for 5.5 % of
the Estonian GDP; employment went down to 8.1 % of the labour force. The agricultural economy has not yet
reached  a  path  of  sustainable  recovery.  One  of  the  main  reasons  is  the  lack  of  fundamental  institutional
arrangements:  75  %  of  agricultural  land  remains  in  state  hands.  The  uncertainty  surrounding  land  ownership
discourages  much-needed  investment  and  long  term  planning.  Still  farmers  have  difficulties  obtaining  credits.
Therefore,  land  registration  and  crediting  of  the  farm  sector  will  be  key  issues  in  the  development  of  the  farm
sector.
About  25%  of  the  population  (2.6  mio)  live  in  rural  communities  with  less  than  2000  inhabitants  in  Czech
Republic. The rural areas are characterised by an insufficient technical and social infrastructure such as limited
public transport, an underdeveloped communications network and a lack of schools. A tendency to depopulation
has negatively affected the demographic structure of rural areas, leading to an overrepresentation of the 55+ age
class. The less densely populated regions tend to have the highest share of agricultural land and also the highest
share  of  agricultural  employment.  In  rural  communities  the  average  share  of  agricultural  employment  reaches
25% (compared to less than 5% for the national average).
The contraction in agriculture was longer and deeper and the recovery has been virtually non-existent compared
to the economy in general. The share of agriculture in GDP has dropped to around 3% in recent years, as has
the share in employment to around 4%. A very strong impact on the social situation of farmers has been caused
by  the  development  of  the  macroeconomic  and  political  environment,  by  the  economic  and  property
transformation and by a restructuring of agriculture after 1989. In 1996, the decrease in agricultural employment,
compared with 1989, was 60 percent and farmers’  share of total Czech employment was 4.1 percent. Since the
start  of  the  transition  there  has  been  a  tendency  towards  a  decrease  in  agricultural  employment  (a  sharp
decrease  occurred  in  1991  and  1992).  In  1996  agricultural  employment  reached  210  000.  In  spite  of  the
continuing  outflow  of  labour  from  agriculture,  people  leaving  agriculture  did  not  contribute  significantly  to  the
increase  in  national  unemployment  (the  rate  of  unemployment  in  agriculture  was  equal  to  the  national
unemployment rate which was 3 percent).
Over the years the contribution of agriculture has gradually fallen to 4.2% of GDP and 9.3% of employment in
Cyprus. Due to the fall in agricultural production, which was particularly badly affected by the recent drought, the
primary sector declined by almost 7% in 2000. After independence in 1991, economic events in Slovenia entered
the difficult transition period which has been going on in all formerly socialist countries. In the first phase of market
reform  and  stabilization  policy,  negative  effects  prevailed,  demonstrated  by  a  sharp  fall  in  economic  activity,
employment and the living standards of the population. Generally, it is a fact that regional development problems
in border areas close to the former Iron Curtain are still considerably high and, under new political circumstances,
entirely comparable to the problems found in borderlands of neighbouring Western European countries.
While aiming at general strategic considerations, it would be a mistake to conceive rural development in CEECs
as in any way lagging behind western European experience. It is essential that rural development policy becomes
installed  as  a  modern  and  timely  tool  of  factual  policy,  that  is  able  to  react  flexibly  to  changing  circumstances.
Rural  development  is  also  linked  to  countryside  management.  And  there  is  widespread  agreement  of  the
importance  of  agriculture  to  the  development  of  rural  areas,  but  not  on  how  that  should  be  achieved.  The
challenge is to define appropriate policies recognising the diversity of rural areas, from remote ones with poor

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landscape  potential,  to  those  with  poor  agricultural  potential  but  rich  landscape  and  visual  amenity,  and
countryside around urban areas. Future developments in technology enabling more people to work from home in
rural areas and increased support for tourism and other diversification projects will help some rural areas. A one-
stop for all rural support and countryside management would be beneficial. This could reduce bureaucracy and
ensure aid is given where it is needed. Effective evaluation would be need. Not enough thought has yet been
given to the rural development and agri-environmental parts of Agenda 2000, and their link with, or separation
from he CAP.
Developing  rural  areas  is  a  considerable  task  but  more  so  in  Eastern  Europe  where  the  economic  and  social
problems are even greater, above all an important aim of present policy. Starting with a fairly similar structure of
business and population in nearly all the rural areas in CEECs, the socio-political system and its objectives have
led to severe changes in population and economic structures and also to similar negative consequences. Experts
have  used  nearly  the  same  words  to  specify  measures  that  ought  to  be  taken  to  combat  them.    These  are
qualitative  improvements  (infrastructure)  in  rural  areas,  regulation  of  the  development  of  agglomerations  that
have  negative  impacts  on  rural  areas,  measures  towards  the  well-being  of  individual  rural  inhabitants.  A
combination  of  infrastructural,  social  and  cultural  systems  is  indispensable  for  a  positive  outcome.  Differences
have to be taken into account; not equalization of rural regions but maintenance of their individual character (the
cultural  system)  must  be  the  goal.  The  regional  identity  of  every  rural  area  must  be  secured.  But  beyond  the
theoretical background effective policies, with respect to regional coordination of already existing inter-regional
relations, have to be kept in mind.

2.2.2  Cultural heritage

Cultural heritage might be defined as embracing all forms of traditional and popular or folk culture, i.e. collective
works  originating  in  a  given  community  and  based  on  tradition.  These  creations  are  transmitted  orally  or  by
gesture,  and  are  modified  over  a  period  of  time  through  a  process  of  collective  recreation.  They  include  oral
traditions,  customs,  languages,  music,  dance,  rituals,  festivities,  traditional  medicine  and  pharmacopoeia,  the
culinary arts and all kinds of special skills connected with the material aspects of culture, such as tools and the
habitat.  With the enlargement process it is expected that the protection and development of the cultural heritage
of the CEECs will be enhanced.
Hungary  as  well  maintains  a  rich  and  unique  cultural  heritage.  From  the  aspect  of  rural  development,  the
ethnographic  and  cultural  traditions,  the  material  and  spiritual  treasures,  the  monuments  constituting  he
archeological  and  art  heritage,  cultural  landscapes  and  village  appearances  have  special  importance.    These
cultural values reinforce the identity and integration of the local and ethnic communities, and at the same time
enriching the European cultural heritage. In Hungary Act CXL of 1997 provides for the protection of cultural and
archeological sites, museums, public library services and public education, whereas Act LIV of 1997 provides for
the  protection  of  monuments.    These  acts  declare  that  objects  and  other  forms  of  art,  which  shape  the  typical
appearance of the country or particular settlements, which keep up cultural traditions and which shape national
identity  and  historical  awareness,  belong  to  the  irreplaceable  historical,  cultural  and  artistic  heritage  of  the
country.  In Hungary 10,400 nationally protected art monuments are on record, in addition the local governments
have a tendency of providing more and more protection for the values in their own artificial environments.  The
State of Hungary provides special protection for 263 art monuments; these remain the property of the state. The
proportion  of  ecclesiastical  monuments  is  significant.    These  can  not  be  sold  or  disposed  in  any  way.
Endangered monuments (folk, industrial, agricultural, castles and manor houses) can be found in about 70% of
Hungary’s  settlements.  Apart  from  their  poor  conditions,  the  reason  for  their  being  endangered  is  the  fact  that
they  have  no  functions.    There  are  831  monuments  outside  the  settlements,  more  than  half  of  which  are
connected to viniculture (National Office of Monuments, 1998).
The  Czech  Republic  as  well  is  renowned  for  the  wealth  of  its  cultural  heritage.  Most  of  the  40,000  registered
cultural monuments are located in rural regions.  There are some 2,000 historical castles and chateaux, many of
which are not used at present and are either neglected or abandoned. The most important 130 monuments have
the status of a national cultural monument and as such enjoy special attention and protection.  Within the rural
settlements and landscape, there is an abundance of different types of monuments – churches, village chapels,
fortified  houses,  historical  farm  buildings,  cottages,  wayside  shrines  and  crosses  as  well  as  many  unique
technical monuments.  The existence of cultural heritage is threatened, however, especially in rural areas.  There

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are neither enough resources for the conservation and maintenance nor enough viable uses.  Rural areas are
still rich in traditional local culture though, especially in terms of music, dance, language, dress and arts.  Folk
celebrations of traditional feasts, country fairs, harvest festivals, etc. are still alive.  The strongest expressions of
these traditions can be still seen in the Moravian regions of Valašsko, Moravské Slovácko and Lašsko and  in the
Bohemian  regions  of  Šumava,  Domažlicko,  Plzensko  and  Podkrokonoší.  There  has  been  an  increase  in  the
number of municipal and private museums.
Traditional  production,  crafts,  skills  and  regional  types  of  farming  fall  within  the  framework  of  cultural  heritage.
This  is  the  case  of  the  traditional  wine  growing  regions  of  Southern  Moravia  an  Northern  Bohemia  and  hop
growing in the Rakovnicko region. The preservation of historical monuments is regulated by Act No. 20/1987 Coll.
On  the  state  care  of  historical  monuments.    It  is  the  obligation  of  owners  to  care  for  the  cultural  heritage,  and
municipalities and the state exercise supervision over this obligation. In Estonia, Phipps and Eliste note that the
country  still  contains  a  high  percentage  of  semi-natural  wetland  areas  in  spite  of  three  decades  of  agricultural
pressures (Phipps and Eliste, 1998), but the wetlands are disappearing at an alarming rate. The wetlands, are
important in terms of cultural and natural heritage values as features of the traditional Estonian coastal landscape
(see also conservation of countryside).
The cultural heritage of rural areas contributes to he qualities of the environment and life and to the stability of
settlements and its potential for diverse uses, especially for the development of tourism, which still remains to be
fully  exploited  in  the  CEECs.  Preservation  of  cultural  heritage  in  rural  areas  can  enable  the  economic
development, give farmers an extra income and help to the perspective of job creation in rural regions through
the  management  of  heritage  resources.  That  is  why  governments  of  the  CEEC  should  encourage  regions,
municipalities, associations and other groups working in folklore to establish full-time jobs and co-ordinate folklore
activities in the region. A policy should be established in order to preserve cultural heritage as long as sustainable
development and the flourishing of culture are interdependent.
The acceptance of cultural diversity also helps to highlight and strengthen inter-community links rooted in values
that can be shared by all the different socio-cultural components of national society. The cultural policy that has to
be implemented in the CEECs with their integration into an enlarged EU should take into account all the elements
that  shape  cultural  life:  creation,  preservation  of  the  heritage  and  dissemination.  A  balance  should  be  struck
between these factors in order to implement an effective cultural policy, but promoting access to culture and its
dissemination  is  impossible  without  maintaining  a  creative  dynamic  safeguarded  by  effective  legislative
protection.

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3. 

Ecological dimension

Agriculture and the environment are not in conflict in themselves. The conflict is caused by the behaviour and
interests  of  men  (Deverre,  1995).    In  general  it  is  quite  obvious  that  many  farming  systems  are  not  on  a
sustainable track.  Environmental and economic problems limiting productivity growth are common in virtually all
countries. Many issues must be dealt with in order to improve the state of sustainability in the CEECs but mostly it
is low profitability that makes it difficult for farmers to take environmental factors into account.  But environmental
problems are widespread and require urgent action so that they will not be aggravated further.
With respect to achieving the objective of sustainable agricultural development, the First Workshop of the Central
and Eastern European Sustainable Agriculture Network (CEESA), which took place from 2 to 7 March 1999 at
Gödöllö, Hungary, identified the following common characteristics of the CEECs (FAO, 1999A):
o  While the use of inputs has lessened in extent over the last few years resulting in lower pollution emissions,

there is no guarantee, however, that this will lead to sustainable agriculture.

o  Deep  financial  crises  in  both  agriculture  and  the  economy  as  a  whole  restrict  the  introduction  of
sustainability-oriented  technologies  and  practices,  as  well  as  leads  to  the  abandonment  and/or  the
degradation  of  previous  long-term  investments  in  soil  fertility  and  erosion-control  measures.  This,  in  turn,
results in the degradation of natural resources and the environment.

Current  agricultural  policies  are  oriented  toward  addressing  short-term  priorities,  with  emphasis  given  to
intensification and increases in production, thus neglecting to pay appropriate attention to the long-term interests
of preserving natural resources.
The main impacts of the transition on sustainability and the environment in the CEECs are described below:
o 

Soil acidification, degradation, salinization and erosion as well as soil contamination with heavy metals are
among the most serious environmental problems observed in the CEECs;
Biodiversity loss;
Some of the few remaining traditional farming systems are threatened;
Intensity levels of fertilizers and pesticides have fallen to very low levels after the transition relative to the
period preceding transition leading to slowly growing nutrient deficiency in many soils. Nutrient balances in
all  Eastern  European  countries  were  negative,  in  particular  for  potassium  (K).(Andres,  1996).  On  the
positive  side,  environmental  degradation  from  the  excessive  application  of  fertilizers  and  pesticides  has
stopped;
Since  in  most  cases  sustainability  depends  upon  the  management  systems  for  nutrients  and  chemicals,
leaching  may  be  significant  in  spite  of  rather  low  application  doses  due  to  inappropriate  agricultural
management systems. Therefore degradation of waterways due to improper nutrient management systems
and poor storage facilities for manure and other harmful emissions is still present;
There is a potential danger that intensity levels will rise very quickly in some CEECs because of possible
access  to  new  markets  and  a  possible  increase  in  producer  prices.  In  combination  with  improper  farm
management practices, this rise in intensity levels will cause environmental degradation (e.g. eutrophication
of waterways or increased ammonia emissions);

o 
o 
o 

o 

o 

Severe financial problems (e.g. farmers’  struggles to survive) create a situation in which farmers care less about
environmental issues. One can expect, however, that if the situation improves with rising income levels and living
standards,  the  demand  for  environmental  services  will  increase  since  the  income  elasticity  of  environmental
goods seems to be positive after reaching a certain level.
As a general rule, it is cheaper to prevent environmental degradation than to clean up afterwards. In the case of
irreversible  processes,  it  is  not  always  possible  to  clean  up.  Procedures  to  prohibit  such  irreversible
developments,  while  at  the  same  time  preparing  for  possible  membership  in  EU  by  the  CEECs,  are  clearly
needed.
In  the  CEECs,  Bulgaria  being  a  typical  case,  during  the  period  of  the  centralized  planned  economy,  the  main
purpose of the state in terms of agriculture was to obtain quantitatively the maximum amount of plant and animal
products. To this end, technologies required the application, of thousands of tonnes of mineral fertilizers and plant
protection pesticides on a national scale. Their incorrect and intensive application exerted a strong negative effect
on soil, water, plant and animal production. The control of the residual amounts of nitrates, nitrites, ammonium

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ions  and  pesticides  in  soil  and  water  was  of  episodic  nature:  it  was  conducted  only  in  "hot  spots";  not
systematically and regularly, hence the reason for its low efficiency.
In Croatia being another typical example of CEECs intensive use of agrochemicals in conjunction with reduced
crop rotation and the use of heavy machines is a significant cause of soil damage. Further more, emissions by
certain industries into environment cause air contamination and acid rains, more so than waste depositories and
the use of fossil fuels in urban centres and in traffic.
In Hungary, the agricultural production exerts a multifaceted effect on the environment, since 66.6 percent of the
land area of the country is given over to agricultural production. Environmental pollution and the deterioration of
the environment resulting from plant and livestock production both demand attention primarily in respect of the
protection  of  the  soil  and  water.  Neither  should  the  air  polluting  effect  of  agriculture  be  neglected,  while  the
positive  role  of  agriculture  in  the  shaping  of  the  landscape  and  in  the  preservation  of  biodiversity  is,  in  many
respects, of determinant significance.
In  Estonia  concern  about  environmental  issues  in  agricultural  production  is  not  a  new  subject.  Environmental
problems  have  been  discussed  and  worked  on  for  many  years.  One  of  the  most  urgent  problems  during  the
period of Soviet rule in Estonia was the pollution of surface and ground water due to an excessive concentration
of animal husbandry and system of liquid manure. The other important problems were linked with bad spreading
technology and storage facilities for mineral fertilizers and pesticides. Sustainable agriculture deals with problems
in  the  border  areas  between  economic  and  technological  development,  food  production,  protection  of  the
environment,  and  the  quality  of  life.  A  vital  task  is  to  maintain  the  production  potential  of  the  soil,  farms,  and
agricultural  society,  without  unacceptable  consequences  for  the  environment  or  the  human  population
(Skutlaberg, 1996.).
Compared to western countries, changes in Latvian agriculture during the 50 years of the Soviet era has been
extensive. In technological terms, the conservation and protection of the environment suffered from a number of
faults.  The  former  agricultural  system  could  be  characterized  by  the  following  factors  influencing  the  overall
environment:
o 
o 
o 
o 

centralized planning, without taking into consideration local conditions;
large scale production with high animal concentration: i.e. 400 800 cows and 745 thousand pigs in one farm;
establishment of large parcels of land (50-200 hectares) disregarding soil and relief differences;
fertilization,  generally  with  mineral  fertilizers,  disregarding  the  application  of  different  technologies,
insufficient use of manure and other organic fertilizers;
use of different pesticides, disregarding technologies with low quality spreaders;
o 
use of large and heavy machinery destroying soil structure, especially in wet periods (sowing, harvesting);
o 
large-scale melioration projects changing hydrological conditions and landscape;
o 
development of rural villages instead of individual farms so typical of the Latvian landscape and tradition.
o 
On the other hand agriculture may have damaging as well as beneficial effects on the environment. Both aspects
have to be considered in order to understand the shortcomings but also the potential of farming activities vis-à-vis
the  environment.  According  to  local  conditions  and  to  the  way  they  are  carried  out,  farming  activities  can,  for
example, favour or combat erosion, increase or reduce biodiversity.
In  Slovakia,  the  environment  suffers  basically  from  the  same  problems  caused  by  agriculture  inmost  other
CEECs. In Slovakia, the most serious problem is water pollution caused by the unsustained high application of
fertilizers  and  the  inappropriate  treatment  of  animal  waste  during  the  socialist  era.  In  particular,  ground  water
basins  and  limnic  ecosystems,  such  as  lakes  and  rivers,  are  still  heavily  polluted  by  an  overload  of  nutrients.
Despite the massive extensification in fertilizer application since the beginning of transition, this problem is likely
to remain a long-term problem. The effects of agriculture on the environment in Slovakia can be classified into:
v 
v 
v 

the use of non renewable resources (fossil energy, phosphorus);
the impact on the farm’s natural basis for production (the soil);
the impact on the surrounding environment, i.e. the conditions under (groundwater), over (atmosphere) and
around (surface water environment, wildlife) and the farm respectively;

Negative effects on biodiversity are partly mitigated by the very large area of Nature Reserves (5 National Parks
with 200 000 hectares and 16 protected areas with altogether 700 000 hectares, of which 137 000 hectares are

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agricultural  land),  and  the  counterbalancing  impacts  of  forests.  However,  in  the  intensively  cropped  plains  of
Slovakia, biodiversity is negatively affected by agriculture.
Formulating  and  adapting  codes  of  good  agricultural  practice  are  starting  points  for  reducing  environmental
problems  caused  by  agriculture.  However,  countries  may  have  quite  different  possibilities  and  prerequisites  to
adopt such practices. In some cases it may be necessary to complete the privatization process and build up the
infrastructure,  extension  systems  and  credit  possibilities  available  to  farmers  before  these  good  agricultural
practices can be adopted.

3.1  Direct effects on the environment

3.1.1  Water

The  relationship  between  water  and  agriculture  is  an  ancient  one,  water  having  been  used  for  agricultural
purposes for several millennia.  However resent scientific developments and national agricultural policies have
altered the state of balance in all countries to a greater or lesser extent. It is expected that with the enlargement
process, unless measures are taken to counter the effects of the intensification of production, that there will be a
significant  increase  in  water  abstraction  and  pollution,  giving  rise  to  growing  environmental  problems.    The
problems caused by agriculture to the water resources can be summarised to the following:
i. 
Lower ground water and river flow levels as a direct result of water abstractions
ii. 
Secondary  effects,  which  are  much  more  difficult  to  measure,  such  as  disappearance  of  wetlands  (also
related  to  the  implementation  of  drainage  systems),  oxygen  deficits  in  rivers  leading  to  the  possible
extinction of species of flora and fauna or the gradual salinisation of ground water in coastal areas

iii.  Environmental  problems  from  the  construction  of  dams  and  the  diversion  of  water-courses  for  irrigation

purposes

iv.  The  effects  of  water  use  on  agricultural  land  causing  increased  nitrate  and  pesticide  leaching  and  the

pollution of ground water and rivers.

In Mediterranean accession countries (Cyprus, Malta and Turkey) the main problems associated with the use of
water  by  agriculture  lie  with  quantitative  aspects,  while  CEECs  mostly  face  problems  of  water  quality  and
pollution.
The impact of water pollutants on the environment clearly depends on the quantity of pollutants discharged and
on their physicochemical characteristics.  Agriculture is an extended source of nitrogen and pesticide pollution
because it covers wide expanses with low levels of emissions for each agricultural holding.  The main problem
with  extended  sources  of  pollution  is  that  it  is  difficult  to  calculate  and  measure  their  impact  and  therefore  to
control them.
The main causes for surface waters being loaded with nutrients are primarily the emissions of phosphorus both in
the  surface  runoff  water  and  attached  to  the  sediments  from  erosion.  The  phosphorus  (P)  and  nitrogen  (N)
nutrients derive from slurry, solid and liquid manure, chemical fertilizers and, to a certain extent, natural leaching
independent of human activity. The consequences of this loading may be an increased turbidity of the water and
an  accelerated  eutrophication.  These  results  may  subsequently  lead  to  an  increase  in  undesirable  biological
productivity, changes in the composition of plant species and changes in the fish species and the stock of fishes.
As  a  consequence,  the  recreational  use  of  the  lakes  affected  will  diminish.  Nitrate  leaching  may  increase  the
nitrate content in ground water and drinking water.
Phytosanitary products can also have undesirable side effects on man and the environment.  While the toxicity of
the various pesticides for man and fauna is relatively well-known, little research has been done into their adverse
effect on the environment.  Pesticide residues (insecticides, weedkillers, fungicides, etc.) are to be found in water,
soil, air and foodstuffs.
Pesticides  have  been  used  even  four  hundred  years  ago.  Many  people  suffered,  and  the  environment  was
polluted due to a scarce knowledge about their proper use. When using such chemicals, very little was known
about  the  harmful  effects  they  have  and,  as  a  result,  many  people  working  with  pesticides  suffered  from  their
damaging effects. Moreover, there was a shortage of health protection measures and pesticides were sometimes
used unconsciously.
Excessive use of fertilizers has been a common problem in Western Europe, whereas the fertilizing intensity in
most of the CEECs has declined during the transition period. Consequently, nutrient leaching is not a problem

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everywhere. However, increasing intensity levels in some countries show that nutrient leaching may increase in
some countries. Poland, the Czech Republic and Romania have problems with water pollution in connection with
agriculture (FAO, 1999). Leaching is affected by a number of farm management practices.
In the Soviet era, Estonia was an intensive animal producer, having serious problems with the disposal of organic
fertilizers. According to national investigations, 76 percent of the nitrogen load and 20 percent of the phosphorus
load  in  water  bodies  originated  from  agriculture  in  the  1980s.  Ground  water  became  increasingly  polluted.
Consumption of mineral fertilizers and pesticides increased in Estonia, as in the other Baltic countries, until 1990.
In 1990 the average doses were 108 kg N/ha and 27 kg P/ha. After 1990, however, input drastically decreased.
In 1994 average nitrogen doses were only 34 kg N/ha, and average phosphorus doses 5 kg P/ha. This drop was
caused by the new political and economic situations. Currently, farms cannot afford the agricultural chemicals.
Slurry is used and crop production relies heavily upon manure fertilization (Löfgren et al., 1999).
In 1996 nitrate was used at an intensity of 19 kg N/ha sown area and 62 kg N/ha fertilized area. In 1997 fertilizer
intensity  slightly  increased.  The  amounts  of  pesticides  applied  decreased  drastically.  The  most  pronounced
changes,  not  regarding  the  smaller  mineral  fertilizer  doses,  are  low  import  of  nutrients  in  feed  and  diminished
ammonia emissions, which can be explained by the fact that there are fewer animals rather than an improved
manure handling. The utilization efficiency of N and P has increased 2-3 times in Estonia. These improvements
are solely due to the limited use of N-mineral fertilizers and no feed imports.
According to estimates presented by Helcom (1999), the total P-load that went into the Baltic Sea from Estonia in
1995  was  1  290  tonnes/year.  This  figure  represents  approximately  3.4  percent  of  the  total  P-load  from  all
countries  around  the  Baltic  sea.  The  corresponding  total  N-load  from  Estonia  was  46  468  tonnes/year,  which
represents 6 percent of the total load from all watersheds around the Baltic countries. These figures do include
leakages from sources other than agriculture, typically point-sources like municipal waste water.
The  Estonian  government  has  taken  several  measures  to  reduce  nutrient  runoff.  In  1994  a  law  on  water  was
stipulated. The regulation reduces the nutrient leaking from agriculture through the following measures:
o  Regulation on animal density. The maximum, permissible animal density varies from 1.0 livestock unit per
hectare in environmentally sensitive karst areas and environmentally vulnerable islands up to 1.5 livestock
units per hectare in other regions.
Fertilizer and manure application according to quantities and timing.

o 
o  Capacity  of  manure  storage.  Storage  capacity  should  not  be  less  than  8  months  for  cattle  farms  and  10
months for pig and poultry farms. Manure should be stored, spread and handled in such a manner that it
would not endanger surface and ground water quality.

The law is said to have had a most significant influence on agriculture.
Nutrient  runoff  from  Polish  agriculture  to  the  Baltic  Sea  is  much  more  important  than  that  of  Estonia  since
Poland’s two principal rivers, the Vistula and the Odra, empty into the Baltic Sea after draining basins that cover
almost (97 percent) the area of Poland.. According to the third Baltic Sea Pollution Load Compilation, Poland was
the country that emitted the most P and N into the Baltic Sea in 1995. Poland accounts for 37.7 percent of total P-
emissions into the Baltic Sea and 28.2 percent of total N-emissions. In 1990-1995 the increase of N-emissions is
estimated at 75 percent. P-emissions from Poland have decreased by 4 percent during the same period Helcom
(1999).  The  figures  include  not  only  agricultural  non-point  pollution  but  also  point  source  pollution  from
municipalities  and  industry.  One  may  add  that  the  environmental  conditions  of  the  Baltic  Sea  have  been  a
concern for several decades (Gren et al., 1997).
Karaczun  mentions  the  improper  storage  of  manure  as  one  important  reason  for  N-losses  from  agriculture
(Karaczun, 1999). In 95 percent of all farms, the manure is stored directly on the ground. As a consequence, N
leaches out into waters. Liquid manure is stored in small leaking tanks. Storage of products and fodder is also
improper and results in losses of nutrients. Most farms are also not equipped with sewage systems and the waste
is  disposed  into  the  ground  or  into  ditches  or  even  unused  wells.  One  may  add  that  waterways  are  probably
threatened  for  the  same  reason.  Improper  storage  and  disposal  of  manure  is  likely  to  be  a  consequence  of
inadequate  financial  resources  for  farmers,  inadequate  infrastructure,  lack  of  a  sewage  system,  low  education
levels and the lack of or inefficient extension.
Despite  both  a  decrease  in  the  land  area  used  in  agriculture  and  a  decrease  in  the  number  of  livestock  and
amount of fertilizer applied, agriculture is still responsible for high nitrogen and phosphorus loads to waterbodies

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and the Baltic Sea. Despite its declining use in recent years, high nutrient loads in recent decades have led to a
substantial  nutrient  accumulation  in  the  soil  in  those  areas  with  high  livestock  density.  Animal  production  has
decreased  on  the  former  animal  farms  and  many  of  them  have  been  closed.  On  the  rest  of  the  farms,  animal
density  has  increased  after  the  privatization  of  farmland.  Today,  practically  all  former  pig  farms  must  be
considered as point pollution sources of the environment.
Nutrient leaching is inevitable in Latvia due to the water balance in the soil, occurring in all soils, mostly during
spring  and  autumn.  Intensive  agriculture  coupled  with  high  application  rates  of  mineral  fertilizers  and  soil
drainage, might increase the leaching of nutrients. Most sensitive to leaching are light soils and soils with high
acidity. The nutrient loses from agricultural catchments and drainage fields are to a large extent the result of the
cropping system, soil properties and weather conditions. Management practices, such as soil tillage and nutrient
applications, are also of great importance.
With the assistance of the Nordic countries, a network of nutrient run-off monitoring stations has been established
in several agricultural catchments in Latvia. The network includes 3 small catchments with drainage fields and
areas  characterized  with  large  applications  of  animal  manure  (pig  farms).  The  size  of  small  catchments  varies
from 3.7 to 9.5 km2. The share of agricultural land ranges from 69 percent to 100 percent from the total acreage
of these catchments. Measurements in Latvian small catchments showed relatively small losses (Ntot 4-17 kg/ha–1
year-1) as compared with results under similar conditions in Sweden and Norway, where the losses varied 20-50
kg/ha –1 year-1. These results may most likely be attributed to higher applications of plant nutrients in the Nordic
countries.
Nutrient run-off was considerably higher in animal manure application sites (pig farms). Nitrogen losses ranged
from 21-239 kg/ha–1 year-1. On the Bauska farm, losses from the 50 hectares catchment, where slurry from 10
000 pigs was dumped, was larger than from any of the sites in Latvia (239,4 kg/ha  –1 year-1 of nitrogen in 1997
and 6.89 kg/ha  –1 year-1 of phosphorus in 1995). On the Ogre farm, pig production was stopped in 1992, but the
farm still has a negative effect on the water quality (phosphorus run-off 2-5 kg/ha –1 year-1).
In  Lithuania  the  1980s  brought  with  it  more  intensive  agricultural  development,  and  positive  results  have  been
achieved. A lot of mineral fertilizers, pesticides and other chemical materials were used in agricultural activities.
Intensive technologies for crop growing were applied. Due to the aforesaid, the 1980s achieved the highest level
of pesticide use. However, at the same time scientific institutions have been looking for chemical materials which
are more effective and less dangerous to human health. They have been looking at alternative materials for plant
protection. Most of the agricultural enterprises hired plant protection specialists, the responsibility of whom was to
supervise the use of pesticides. Strong control on the use of chemical materials were carried out. By now there
are a lot of pesticides in warehousing, the validity of which have expired. In many cases, the packaging is old and
this way threatens the environment.
After regaining independence and the failure of collective farms, the volume of agricultural production decreased.
At  the  same  time,  the  need  for  and  consumption  of  pesticides  decrease.  Only  the  most  successful  farmers
continued  to  use  pesticides.  Some  of  those  farms  could  afford  to  buy  new  atomisers  or  instead  repair  the  old
ones. Due to these factors, the quality of spraying improved. In the meantime, there has been a tendency for the
consumption  of  pesticides  to  increase;  constituting  50  kg  of  pesticides  per  100  hectares  of  utilized  agricultural
area.  This  figure  is  much  lower  in  comparison  to  the  1980s.  Gradually  the  process  for  pesticide  registration  is
becoming stricter. It is forbidden to register pesticides the validity of which has expired and which are not suitable
for  consumption.  Priority  is  given  to  pesticides  which  are  safer  for  human  health  and  environmentally  less
dangerous. Companies distributing pesticides on regular basis consult farmers on how to use pesticides in order
to cause as little harm as possible. Currently, chemical use for plant protection purposes is insignificant and it is
unrealistic to even decrease this quantity. However, it is estimated that as farms grow the consumption level will
also increase. In the meantime, it is very important to seek the rational use of pesticides and to cause as little
harm as possible.
In  Bulgaria  the  amount  of  water  used  for  irrigation  in  the  Plovdiv  region  has  declined  sharply  over  the  past
decade. The decline has been attributed to the general decline in agricultural production and decollectivisation.
Despite  this,  the  pollution  of  ground  and  surface  waters  with  nitrates,  nitrites,  ammonium  ions  and  pesticides
continues, though at lower rates, as a result of the intensive and incorrect application of mineral fertilizers and
plant  protection  chemicals.  From  the  sites  around  pesticide  storehouses,  with  high  contents  of  nitrogen

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compounds and pesticides in the soil, through the water flow from rains and irrigation, they pass into the ground
water, and then into the surface water. Although only episodically, the surface water of canals and small streams
is  also  polluted  by  chemicals  from  the  washing  and  cleaning  of  plant  protection  machines.  Not  all  of  the  large
animal  breeding  farms  left  after  privatization  have  at  their  disposal  special  waste  water  pits,  and  thus  directly
pollute the soil, water and air in the region. The situation in Romania is similar as pollution from agriculture affects
both  surface  and  groundwater.  The  Danube  basin  is  under  particularly  great  pressure.  The  quality  of  drinking
water is in many places low because of a high nitrate content.
On the other hand results of scientific research work in Croatia point to low levels of contamination in both surface
and ground waters. Agriculture has a particularly small impact on this contamination. This is partly due to legal
regulations on water protection where agricultural production is encouraged to implement correct soil fertilization
and  the  regular  harmonizing  of  nitrogen  and  phosphorus,  due  to  soil  characteristics.  Therefore,  several
professional  agricultural  support  services  are  engaged  in  promoting  the  goal  of  preserving  water  quality  (both
surface and ground). This is achieved by supporting the system of "permanent green" areas, and shortening the
period  of  "grassless"  (bleak)  soil,  thus  reducing  soil  erosion  caused  by  water.  When  building  livestock  and
processing  capacities  in  agriculture,  all  regulations  regarding  the  preservation  of  surface  and  ground  waters
should be respected. The combination of all mentioned activities provides a positive contribution to environment
protection on the principle of intensive agriculture combined with the preservation of water quality.
But overuse of water resources is a substantial problem is Croatia because of the use of more simple irrigation
systems, which in most cases irrationally use large quantities of water. Only in narrow Mediterranean areas and
in eastern parts of the Pannonian region, where there is a small deficit in water supply, for some sorts of fruit and
vegetables it is economically justified to set up complex irrigation systems.
In Hungary changes in land ownership have exerted an influence towards increased thrift with respect to water
resources. This development has also been motivated by the fact that water needs have multiplied in the past
decade. Within the framework of melioration investments, activity related to soil drainage had practically ceased
by  the  mid-1990s  and  the  exploitation  and  replenishment  of  the  capacity  of  the  irrigation  systems  is  also
hampered  by  the  present  fragmented  structure  of  land  ownership.  In  the  area  between  the  Danube  and  Tisza
Rivers, underground water levels have sunk to such a degree as to put at risk agricultural production.
Czech water resources are relatively small, and the intensity of use significantly higher than the OECD average.
Agriculture is not a big user of water resources, but it is one of the biggest water polluters. In the Czech Republic
the use of fertilizers and the input of manure was relatively high during the communist period. In the middle of the
1980s, the nitrogen balance reached more than 100 kg/ha of agricultural land (Klír, 1998). The cost minimizing
behaviour  of  farmers  resulted  in  a  rapid  fall  in  the  application  of  industrial  fertilizers  during  the  first  years  of
transition. Due to a structural shift away from animal production, the application of manure dropped as well. As a
result, the biggest improvement of agricultural nitrogen balance in OECD countries was observed in the Czech
Republic, i.e. down over 80 percent to 51 kg/ha of agricultural land in the period 1988 - 1996. This figure might
still be over the OECD average value of 17 kg/ha of total agricultural land. However, it is close to the EU average
of 46 kg/ha, and definitely substantially lower than in Benelux or Denmark (Brower, Loewe, 1998).
Although there has been an upward tendency in the use of plant protection substances in recent years, their level
still remained below half of the pre-transition figures. In 1996, nearly four thousand tonnes of active substances of
plant protection products were used in the Czech Republic, which, in turn, corresponds to 0.91 kg/ha, compared
with the application of 2.42 kg of active ingredients per hectare in 1980s.
In Slovakia the loss of nitrogen, (N) from livestock farms may contribute to the increase in the nitrate content in
ground water used for drinking water and in the eutrophication of lake waters, thus reducing the biodiversity and
the amount of consumable fish. Phosphorus, (P) is not presently leaching in significant amounts in Slovakia, but
can be lost via surface erosion to streams and lakes where it causes eutrophication. The sustainable use of water
resources in agriculture is one facet of sustainable agriculture. The main water use is for agricultural production,
and secondary uses are those for human and farm activities. Water use for crops comes from both rainfall and
irrigation,  but  human  intervention  is  mainly  oriented  to  irrigation.  Water  quality  is  a  growing  problem.  Surface
waters  become  more  polluted:  low  dissolved  oxygen,  heavy  metals  and  increased  faecal  coli-forms.  This  is
mainly caused by effluents from industry and urban settlements. However, agriculture is also a cause of pollution,
particularly groundwater pollution. In Slovakia, shallow horizons in lowland regions are mostly endangered. High

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nitrate concentrations above 50 mg/litre were found in water sources in the Považie and Ponitrie regions, and
also  in  the  Východoslovenská  Lowland.  In  the  1980s,  the  nitrate  content  in  water  sources  increased  yearly  in
these regions by more than 4 mg/1iter.
The negative sides of high capacity animal production technologies on water pollution were manifested with water
contamination by manure and manure heaps, stable outflows, silage liquid, veterinary medicines, bio-factors, and
with the incorrect application of fluid and solid organic fertilizers, and the consequent flow or leakage of nutrients
into  potable  water  sources.  At  the  present  time,  the  amount  of  excrement  in  Slovakia  has  fundamentally
decreased because of a reduction in animal numbers. Most litterless cattle houses have been reconstructed and
replaced by other more ecological technologies.
In organic farming, synthetic fertilizer and pesticides are not used. A crop rotation including perennial and N-fixing
crops,  together  with  the  use  of  fertilizer  of  organic  origin,  is  regarded  as  fundamental  for  an  environmentally
friendly  and  productive  farming  system.  Organic  farming  therefore  offers  a  better  framework  for  obtaining
knowledge  and  doing  research  than  conventional  farming  systems  do.  This,  in  combination  with  the  increased
general interest in organically produced food, has resulted in research efforts within organic production systems
in Slovakia for the purpose of producing knowledge about sustainable agriculture systems.
The  reasons  for  the  worsening  water  balance  can  be  attributed  to  changes  in  natural  and  climatic  conditions,
changes in land use (from 1965 to 1990, 90 000 hectares of meadows and pastures were ploughed and changed
into arable land. Perennials represent a significant eco–stabilizing factor in the landscape, mostly from the point of
view of water retention and water protection from pollution in the agricultural landscape) and finally to the human
use of water without respecting the rules of energy flow and hydrological cycles.
The positive impacts of hydro-melioration equipment influencing productivity (sustainability) are:
o 

stabilization  of  agricultural  production  at  wetter  supply,  production  of  fodder  and  consequently  animal
production;
higher manure production which positively influences soil fertility and sustainability;
higher economic efficiency of production and of agricultural subjects (economic dimension of sustainability);
stabilization and higher incomes for employers in agriculture (mostly in the previous regime); and

o 
o 
o 
o  more effective use of national water potential.
The negative impacts are:
o 
o 
o 
o 

disregard of environmental functions;
deterioration of conditions for water birds (biodiversity reduction);
destruction of wood vegetation; and
change  in  the  original  vegetation  and  worsening  conditions  for  moisture-loving  fauna  (impoverishment  of
zoocenoses).

In summary it can be said that although agricultural production has dropped to very low levels compared to that
produced during the previous economic system water abstraction and pollution has not reduced in comparative
way due to archaic and badly maintained irrigation systems as methodologies that have not been integrated with
ecological and sustainability concerns.  The enlargement process will increase the productivity levels but at the
same time this must be done in a sustainable way in regard to water resources.

3.1.2  Air

Global  warming  and  climate  change  are  currently  a  major  environmental  issue  at  international  level.    New
commitments to reduce emissions of Green House Gases (GHGs) beyond the year 2000 were agreed in Kyoto in
December  1997,  under  the  UN  Framework  Convention  on  Climate  Change  (FCCC)  first  signed  in  1992.
Agriculture is estimated to be responsible for 9% of total greenhouse gas emissions, as it is a major source of
CH4 and N2O.  The role of agriculture, both as a source of and as a sink19 of GHGs varies significantly between
accession countries because of the different agricultural policies adopted and the different agricultural practices
implemented.
The Communication to the Council and the European Parliament COM(97)88 on a Community strategy to combat
acidification, defines acidification as the ensemble of “the effects of the introduction of acidifying substances into
the environment by means of atmospheric deposition”.  The main pollutants which contribute to acidification are

19  Sinks remove CO2 from the atmosphere, generally through photosynthesis, which absorbs CO2.

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sulphur dioxide (SO2), nitrogen oxides (NOX) and ammonia (NH3). The effects of acidification vary geographically
and depend on a combination of two factors: the magnitude of deposition (wet and dry), and the natural sensitivity
of the receiving media (soil and water).  The effects can be classified as effects on soil and forests, effects on
surface  water  and  groundwater,  and  other  effects,  such  as  deterioration  of  building  materials  etc.    Agricultural
practices  contribute  mainly  to  NH3  emissions  and  are  responsible  for  around  95%  of  these  emissions.    Major
sources of ammonia emissions are volatilisation from livestock excretions and to a lesser extend volatilisation of
ammonia from nitrogenous fertilisers and fertilised crops. The study will describe the contribution of agricultural
emissions in accession countries to global warming and acidification.
Sustainable farming systems should take the effects on the atmosphere into account. Agriculture has a double
role here since it works as a sink of carbon dioxide (CO2), but is an emitter of methane (CH4) and nitrous oxide
(N2O).  Volatilization  of  ammonia  is  a  source  of  acid  rains.  Especially  high  animal  stocking  densities  may  be  a
reason  of  ammonia  emissions.  Stocking  density  is  also  significant  in  determining  grazing  pressure.  Several
factors, however, must be taken into account when referring to stocking densities, such as (a) how the foraged
area is managed and what the soil type is and (b) whether the grazing of unimproved grass-land is sustainable or
not.  The  distribution  of  livestock  over  time  is  also  another  important  factor.  (Baldock  and  Beaufoy,  1993).
Traditional farming systems using transhumance have tried to resolve the pressure by moving their cattle to other
areas, for instance, during dry periods or during warmer periods.
Like most other countries’  agriculture, Croatian agriculture emits greenhouse gases and ammonia. Agriculture’s
share  of  total  methane  (CH4)  emissions  is  25  percent.  Its  share  of  total  nitrous  oxide  (N20)  emissions  is  66
percent,  as  is  its  share  of  ammonia  (NH4)  emissions.  In  Croatia  measurements  by  the  State  Department  for
Meteorology show that 60 percent of SO2 in the air comes from abroad (Western European countries), while 40
percent  arises  from  "domestic"  industrial  sources.  Agriculture  contributes  with  high  emission  rates  of  methane,
nitric monoxide and ammonia because of its nature and conventional way of production. Agriculture's share in
total emissions of CH4 is about 25 percent, in emission of N2O it is 66 percent, and of NH4 almost 70 percent.
In  Romania  acid  rain  seems  to  be  a  problem  of  great  concern.  Methane  (CH4),  nitrous  oxide  (N2O)  and
ammonium nitrate (NH3) is emitted to the air. On the other hand in Bulgaria if compared to the other economic
sectors – energy production, chemical and petro-chemical industries, metallurgy and transport - the level of air
pollution  caused  by  agriculture  is  extremely  low.  It  is  of  a  local  and  most  often  seasonal  character  and  it  is
realized  by  the  performance  of  agricultural  machines  in  the  field  and  by  the  small  processing  enterprises  and
greenhouses  using  black  oil.  Because  of  the  high  sulphur  content  in  the  black  oil,  they  pollute  air  through
emissions of sulphur, nitrogen and carbon oxides. The air is more seriously polluted by ammonium and nitrogen
oxides from farmyard manure, stored around the animal breeding farms. Wood-processing by farm co-operatives
also contributes to the dust pollution of air. Air pollution results, although of an episodic nature, from the burning of
stubble after cereal harvesting - a harmful practice which has become very common in recent years. Methane
emissions  from  rice  fields  proved  to  be  more  serious  air  pollutants,  but  they  were  sharply  reduced  after  land
privatization because of destroyed irrigation facilities and the high water prices.
In Hungary statistical data relating to emissions of air pollutants demonstrate that, with the exception of methane
emissions, the contribution to agriculture by total national emissions of air pollutants is of an insignificant level. In
the mid-1990s agriculture was responsible for between zero percent and 4.7 percent of emissions per kilotonne
of  carbon  dioxide,  oxides  of  nitrogen,  carbon  monoxide,  solids  and  non-methane  volatile  organic  compounds
(NMVOC);  however,  the  15.6  percent  contribution  of  agriculture  to  methane  emissions  was  of  a  considerable
level, and the latter figures were almost entirely attributable to livestock production.
Agriculture has not creating significant air pollution in Estonia and Lithuania. In Latvia Emissions per person are
lower,  and  the  quality  of  the  air  higher  when  compared  with  Western  Europe.  The  emission  of  carbon  dioxide
(CO2) from fuel combustion and industry in Latvia is about 11 million tonnes. Currently carbon dioxide emission
does  not  exceed  the  net  assimilation  of  CO2  in  Latvian  forests  (sequestration  of  20  million  tonnes).  Today
agriculture has a decreased influence on air quality. However, as both the economy and farming start to grow
rapidly, emissions from agriculture will become larger unless measures for its reduction are taken. Agricultural
activities cause air pollution problems by the emission of various gases, odour nuisance, and smoke pollution.
Until  recently  the  present  little  attention  was  paid  to  air  pollution  from  agricultural  activities  because  it  was

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believed that it was not an essential factor in air pollution. At the same time emissions, especially of ammonia,
have a negative economic effect on farm practices.
Agricultural production in Poland brings about the following kinds of emissions (Rzad Polski 1997): CO2 (coming
from  the  use  of  energy  carriers  in  farms  and  production  activities),  CH4  (coming  from  breed  animals’  enteric
fermentation and animal excreta), N2O (the use of nitrogen fertilizers). The decrease in methane emission from
animal breeding results from a lower cattle and sheep population in the 1990s (Table 13). Reduction of nitrogen
peroxide from about 30 percent in the years 1988-94 is bound up with reduced nitrogen fertilizing from 82.0 kg
N/ha in 1988 to 46.6 kg N/ha in 1994. The emission of this gas is expected to grow in the years to come together
with the increased use of nitrogen fertilizers. The estimated CO2 emission resulting from the use of fuels in farms
amounts to about 32 million tonnes a year and has maintained a steady level for several years. Since the use of
solid  fuels  has  been  decreasing,  the  respective  emission  of  this  origin  should  decrease  as  well  (Table  14).
Another  source  of  agricultural  pollution  emission  into  the  air  is  the  agri-food  industry.  This  source  of  emission
decreased by over 20 percent in the years 1993-97 as far as ashes are concerned, and by 30 percent in the case
of SO2 . The reduction is closely bound up with the change of energy carriers and the smaller amount of sulphur
in coal. The share of this sector in the total pollutant emission into the air varies from 1 percent in the case of
ashes and SO2 emissions from agri-food plants and 9 percent in the case of carbon dioxide emission coming from
fuel  use  and  production  activity  in  farms,  to  25  percent  in  the  case  of  methane  emission  coming  from  breed
animals’  enteric fermentation. The situation is not expected to change in the years to come.
The emissions of greenhouse gases in Slovakia reached their highest level in the late 1980s. In the period 1990-
1994,  this  level  dropped  by  25  percent  and  from  1994  we  are  registering  a  slight  increase.  The  use  of  fossil
energy  is  of  interest  because  it  is  a  non-renewable  resource  and  because  combustion  contributes  to  global
warming. Air pollution is caused by a high energetic input in the form of fossil fuels, releasing the greenhouse gas
carbon oxide (CO2) and also emissions of methane and ammonia. Greenhouse gases released by agricultural
activities  include  methane,  carbon  oxide  and  nitric  oxide.  A  very  important  greenhouse  gas  is  methane  (CH4),
which  is  generated  by  the  anaerobic  decomposition  of  organic  substances.  In  the  environment,  it  is  naturally
released  in  bogs.  In  agriculture,  it  is  also  created  in  cow  and  sheep  digestive  tracts  and  also  in  all  operation
outlets  with  an  imperfect  combustion  of  organic  substances.  One  methane  molecule  from  animal  production
causes 40 times more danger in its greenhouse effect than carbon oxide. The fundamental portion of CH4 comes
from animal excrements. The multitude of methane emissions from animal production depends on the intensity of
animal production; the way of animal placed; manure holding; and the method of manure application.
The step up in milk production and the transition to less polluting technology after 1990 decreased the production
of greenhouse gases (by number reduction, and more intensive energy exploitation). A gas reduction of 20-90
percent is caused by manure management (technology, time, soil type and plant). Qualified judgement showed
that in 1988 animal production produced more than 180 Gg CH4. In 1997, the Slovak agricultural contribution to
all greenhouse gases emissions was around 7 percent. Most methane is produced in agriculture: 46 percent. The
other pollution gas is N2O, which is generated by a mineral nitrate surplus in the soil as a result of a combination
of intensive field manuring by industrial manure and a poor air regime in the soil. The release of nitrate gases
from the soil into the air is a part of the natural mechanisms of N in nature. It is generated as a result of biological
processes in the soil (de-nitrification, nitrification). Every year, on average 4-7 Gg A–N2O is released in Slovakia,
which is only 0.09-0.016 percent of the whole world’s production of A–N2O from agricultural land. The amount of
deposited N in Slovak Republic in 1995 was 2 500 tonnes.
Summing up it needs to be said that agriculture does not contribute to air pollution to a considerable extent in the
CEECs but since the agricultural production is expected to rise with the enlargement process measures should
be taken not to increase the contribution of agricultural processes to air pollution such as the greenhouse effect
and acidification.

3.1.3  Soil

Agriculture has for a long time been based on a notion of the soil as an inexhaustible resource for continually
increasing production.  Contrary to this misconception, because of its slow formation rate (100-400 years/cm of
topsoil),  soil  must  be  considered  as  a  non-renewable  resource  and  must  be  preserved.    Soil  is  affected  by
physical, chemical and biological degradation.  Forms of physical degradation of the soil due to agriculture are
erosion,  desertification,  water  logging  and  compaction.    Processes  that  characterise  chemical  degradation  are

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acidification, salinisation and contamination by micro pollutants, such as pesticides, heavy metals and nutrients.
As regards to biological degradation, agriculture affects humus mineralisation and incites changes in biodiversity.
Mismanagement of agricultural soil and its fertility results in erosion, salinization and desertification. Soil can also
become contaminated with chemicals. For instance, in Bulgaria, Poland, the Czech Republic and Romania soil
degradation and soil erosion are seen as major environmental problems (FAO, 1999A). Biological diversity in the
soil is not fully understood yet (Helenius 1999). Heavy metals in the soil (e.g. as a consequence of impurities, like
cadmium, in fertilizers) will also affect soil sustainability in the long run. The enlargement process is expected to
influence agricultural production in CEECs in a positive way, this means that more pressure will be put to the soil
resources  of  those  countries.    It  is  expected  that  the  EU  will  assist  the  CEECs  in  implementing  new
methodologies of agricultural production which are less damaging to the soil medium.
The  main  environmental  problems  caused  by  agriculture  to  soil  in  CEECs  can  be  seen  in  Bulgaria  which  is  a
typical case for this countries (Georgiev, Bentcheva, 1998):
1. 

Land degradation is severe in Bulgaria. Land degradation is caused by acidification and erosion. The main
reason for this acidification has been intensive fertilization. Soils with low buffer capacity are more sensitive
to this effect. A traditional way of preventing soil acidification is liming the soil. In addition, deterioration of
soils due to construction work has also been high. However, liming has decreased severely, as the areas
limed  in  1997  only  were  1.7  percent  of  those  limed  in  1989.  In  1985,  975  000  ha  were  totally  degraded
because of erosion.
Improper irrigation systems have led to the salinization and erosion of cultivated land. Some 28 000-30 000
ha are salinized, and another 40 000 ha are potentially salinized. The total area of irrigated land is 1 185
000 ha. Like other inputs, the use of water has decreased. This pollution of ground and surface waters with
nitrates,  nitrites,  ammonium  ions  and  pesticides  continues  at  lower  rates,  but  is  still  an  ongoing  concern,
resulting  from  the  incorrect  application  of  mineral  fertilizers  and  plant-protection  chemicals.  Irrigation
equipment and pumping stations have been destroyed. Their restoration has led to a manifold higher price
of irrigation water and water fees.
Local pesticide pollution of soils occurs. Pesticide pollution of soils is usually of a local and incidental nature.
Inappropriate rates of pesticide application, in combination with bad storage, have contributed to pesticide
amounts  in  soils  above  the  maximum,  permitted  concentrations.  The  pesticides  include  some  banned
chloro-organic  insecticides  (e.g.  hexachloran  heptachlor,  aldrin,  dieldrin  and  edrine).  The  amount  of
pesticides  applied  decreased  sharply  between  1994  and  1997  for  the  same  reason  as  the  fertilizer
decrease,  i.e.  prices  have  been  too  high.  During  the  land  privatization  and  the  liquidation  of  the  old
structures,  the  problem  of  pesticide  storage,  protection  and  controlled  application  arose,  as  well  as  their
destruction  when  they  were  no  longer  fit  to  be  used.  Cases  were  recorded  in  which  outdated  chemical
preparations were removed from their original packaging and offered for sale.

2. 

3. 

4.  Animal husbandry also contributes to soil and water pollution through farmyard and liquid manure. Not all
animal  farms  store  their  farmyard  and  liquid  manure  adequately  according  to  the  respective  normative
requirements. With agrarian reform and land privatization, the total number of farm animals in the country
sharply decreased, which contributed to the improvement of the general ecological situation. A large part of
the  animal  breeding  farms  and  complexes  were  liquidated,  which  contributed  to  the  decrease  in
environmental  pollution.  Of  those  remaining  near  the  bigger  towns,  not  all  follow  the  legal  environment
protection  requirements.  Though  paying  the  requisite  fines  for  doing  so,  them  nevertheless  continue  to
pollute canals, small rivers, and micro dam-lakes with effluents. In the villages, after land restitution and the
increase of farm animal numbers, the farmers utilize their farmyard manure for manuring their land much
better without causing any serious environmental damage.

In  Poland  which  is  another  typical  case  of  CEECs,  Karaczun  cites  figures  for  widespread  wind  erosion,  water
erosion and gullying (Karaczun, 1999). Almost 28 percent of the land area is endangered by wind erosion, 27.9
percent by water erosion and 18.2 percent by gullying. Arable land situated in central and eastern Poland (85
percent of the total area of Lodzkie Province) is mostly endangered by wind erosion; northern and upland districts
by  water  erosion  (71  percent  of  the  total  area  of  Bielskie  Province)  (GUS  1998).  Despite  measures  taken  to
decrease it, the danger of soil degradation has in fact not diminished.  Erosion continues to be the basic form of
soil degradation.

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Another  form  of  degradation  is  soil  exhaustion  resulting  from  simplified  crop  rotation,  monoculture,  reduced
organic fertilizing and the repeated use of the same fertilizers and plant protection chemicals. The introduction of
a market economy has resulted in decreased fertilizer use. The use of artificial fertilizers decreased drastically in
the beginning of the 1990s, from an annual amount of 175.2 kg/ha of N, P and K in 1985 to 71.4 kg/ha in 1995.
After the mid-1990s average fertilizer doses have started to increase. They were 88.3 kg/ha in 1997 (50 kg N/ha
and  17  kg  P2O5/ha).  In  spite  of  the  low  input  levels  of  nutrients,  the  N-balance  on  a  national  level  displays  a
considerable nutrient surplus, on average 68.41 kg N/ha in 1991.
Reduction of organic fertilizing also leads to decrease of humus. In the first half of the 1990s, the ongoing process
of  dehumidification  of  soils  was  caused  by  their  excessive  drying  (Rzad  Polski  1997).  Agricultural  soil  salinity
results from improper fertilizing and irrigation, especially with sewage. The amount of fertilizers used in Poland as
well as the area under irrigation has decreased since the 1990s. The amount of sewage used for irrigation has
considerably  dropped.  This,  in  turn,  reduced  the  danger  of  this  kind  of  degradation.  It  should  be  expected,
however, that the intensification of agricultural production will result in a larger area under irrigation, which will
increase the salinity danger. Liming has stayed at previous levels, possibly because of subsidization. Despite this
fact, acidification is a serious problem, and the amount of liming and fertilizers is insufficient (Karaczun, 1999).
Although  it  is  caused  mainly  by  natural  factors  as  well  as  industrial  emissions,  the  use  of  physiologically  acid
fertilizers speeds up the soil acidification process.
Erosion and soil acidification are the most troublesome for Polish farmers as well. Much as it is possible to fight
slight and medium erosion e.g. by applying proper agrotechnical methods and crops, preventing acidification is
more difficult and requires expensive work. Despite the fact that the cost of liming is being subsidized from the
state budget, the amount of fertilizer used is insufficient for Polish conditions. The fact must not be ignored, as
research shows that soil acidification is an ongoing process (IUNG 1989). When cultivated on acid soils, plant
intake of heavy metals is considerable, even if their concentration in soil is insignificant. Erosion, acidification and
exhaustion  bring  about  reduced  crops  and,  as  a  result,  may  lead  to  the  intensive  use  of  fertilizers  and  plant
protection chemicals. An important factor that poses a threat to the condition of soils is the bad economic situation
of farms. Producers, looking for ways to increase their profits, are ready to use a simplified crop rotation system,
use the cheapest possible fertilizers or pesticides (not always proper ones) or overexploit the soil with the hope of
gaining higher profits.
In Romania out of a total 16 million ha of agricultural land, 12 million ha are affected by factors such as erosion,
water and salt excess, compacting, acidification, chemical pollution from pesticides, heavy metals, fluoride oil and
similar  substances  (Toma,  1999).  Only  3.7  million  ha  of  the  10  million  ha  of  arable  land  are  suitable  for  a
sustainable and efficient agriculture. Erosion is the biggest problem affecting about 6.3 million ha. Soil compaction
has been observed on 6.5 million ha. Nutrient deficient areas, depending upon the nutrient, affect several million
ha.  Acidification  is  recorded  to  be  present  on  3.3  million  ha,  and  chemical  pollution  on  0.9  million  ha.  Animal
waste,  like  other  discharges,  affect  watercourses  and  cause  a  high  degree  of  deterioration.  At  the  same  time,
large areas of arable land will be depleted of their nutrient content, which is an unsustainable development. The
lacks of liming, equipment, seed and other necessities are obstacles to improving or sometimes even maintaining
productivity.
While  Croatia  has  the  most  preserved  soils  in  Europe,  However  the  damage  caused  to  the  pedosphere  has
reached such a level that it needed to be investigation and activities organized for its protection, are needed. In
agriculture  there  is,  however,  a  relatively  low  level  of  production  intensity  which  has  little  significance  in  soil
pollution. In Croatia, the  Law on agricultural soil has been enacted, giving special emphasis to the protection of
natural  resource.  Regulations  on  Croatian  agricultural  soil  protection,  agreed  in  collaboration  with  other  Alpine
and Alpine-Adriatic countries, determine the principal parameters of soil protection. Erosion is a problem in some
areas of Croatia as well, like in the centre of the Istra peninsula. More than 90 percent of the soils in Croatia are
subject to varying degrees of erosion. Within 1.3 million hectares of Karst, erosion has already reached bedrock.
The worst problem in this respect lies is in the central and coastal areas of the Istria region, due to an increased
tendency  of  the  soil  to  be  eroded,  with  100-200  tonnes  of  eroded  material  per  hectare  annually.  It  is  also
estimated that about 25 percent of deserted and uncultivated agricultural land in Croatia is totally or partly mined
since  the  war.  Such  areas,  especially  in  rural  regions,  will  be  an  integral  part  of  agricultural  land  utilization

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problems in Croatia for a long time. This is because of the complexity of the mined areas, inadequate plans for
their clearing, and a lack of technical and financial resources.
Between 1986 and 1990 the NPK balance in soils in Hungary showed a distinctly positive balance for all of the
three  macroelements  cited,  but  particularly  with  respect  to  nitrogen.  In  contrast,  between  1991  and  1995
significant nutrient deficiency emerged. In regard to pesticide utilisation, almost a half of all agricultural sites limit
treatment to partial, occasional applications which in many cases, serve only to deal with the symptoms. About a
third of all farms undertake no genuine activity with respect to plant protection at all" (Láng et al., 1995). From the
aspect of environmental protection, the fact that in 1997 national pig stock numbers amounted to 61.6 percent of
those  recorded  for  1990  represents  a  considerable  decrease  in  the  quantity  of  highly  polluting  liquid  manure
produced. Another beneficial phenomenon is that increasing numbers of livestock production sites are changing
over  to  environmentally  sound  technology,  with  stable  manure  fertilization  now  regaining  prominence.  No
omission should be made of the concern arising from the fact that a substantial proportion of the liquid manure
produced  in  the  past  few  years  is  currently  still  in  storage  containers,  the  responsibility  for  the  disposal  of  this
being universally neglected.
A  cause  for  concern  regarding  soil  fertility  farming  is  that  the  agricultural  cooperatives,  companies  and
partnerships operate on land which they do not own but merely rent. In most cases, lease contracts are presently
signed only for short periods; this represents a considerable obstacle to long-term sustainable farming. The pH of
soils  has  also  fallen  progressively  in  the  past  few  decades  as  a  consequence  of  the  wasteful  use  of  artificial
fertilizer.  In  addition  the  widespread  use  of  liquid  manure  technology  has  caused  a  significant  proportion  of
agricultural  land  to  be  exposed  to  erosion  by  wind  and  water.The  deterioration  of  the  water  drainage
infrastructure  made  a  considerable  contribution  to  the  fact  that  at  the  beginning  of  1999  several  hundred
thousand hectares of agricultural land remained covered by water for a protracted period of time. It should also
be noted that, in addition to causing ecological damage, the diversion of the River Danube in the Szigetköz region
in 1992 seriously restricts the development of agricultural production.
In Estonia today, the percentage of unused arable land has stabilized at around 220 thousand hectares, which is
equivalent to 20 percent of the total arable land. In 1992, only 1 percent of arable land was idle. There are three
principal  reasons  for  this  situation.  Incomplete  land  registration  is  one  of  the  key  elements,  as  75  percent  of
agricultural land is still in the hands of the state. The land privatization process is proceeding slowly and, so far,
idle  land  also  remains  in  the  hands  of  the  state  because  there  are  no  claims  on  such  land  at  all.  In  addition,
farmers find it unprofitable to produce. And thirdly, the quality of soils on the remaining state owned land is lower
than the national average.
One possible outcome may be that most of the idle arable land will not return to agricultural use and the land will
gradually start to become woodland. This phenomenon has also a regional dimension; most of the idle land is
situated in the south-eastern part of the country. The share of idle land is even much higher when the idle natural
grassland  area  (approximately  175  thousand  hectares)  is  included.  This  means  that  more  than  one  quarter
(about 400 thousand hectares), of the total agricultural area is currently idle. The share of idle land is expected to
decrease, although parts of it will probably never come back into production. The share of idle land will decrease
for  two  reasons.  Parts  of  it  will  be  taken  into  other  use,  and  parts  of  it  will  be  used  for  cultivation  due  to  the
increased need for cereals and fodder.
Nearly  the  third  of  the  arable  land  has  been  drained  over  the  past  40  years,  but  as  collective  farms  were
dismantled  after  1991,  the  drainage  system  lacked  maintenance  and,  therefore,  can  often  be  found  in  a  bad
condition  requiring  investment.  This  also  has  a  negative  impact  on  yields.  From  the  World  Bank  and  national
funds,  a  total  of  US$5.5  million  has  been  made  available  for  the  maintenance  of  the  drainage  system.  The
Ministry of Agriculture has chosen the maintenance of its drainage system as one of its key investment areas.
The use of heavy machinery lead to compaction and the poor structure of soils.
The intensity of fertilizers used per hectare was reduced significantly in Estonia as well. In 1996 as with the three
previous  years,  the  trend  of  agricultural  cultures  was  in  removing  more  plant  nutrients  from  soil  than  were
introduced into the soil with fertilizers. Hence, for example, in 1995 the rate of fertilizer use in Estonia dropped
under the critical level. As a consequence, the fertility of the soil decreased significantly. In 1997, a slight recovery
took place.  The use of pesticides declined fivefold, according to national statistics. In 1996, farm enterprises used
0.6 kg/ha of herbicides and 1.0 kg/ha of fungicides. Herbicides were used on 140 000 hectares in 1996.

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In the Czech Republic according to estimates by the Research Institute of Melioration and Soil Protection, close
to 70 percent of agricultural land was jeopardized by water and wind erosion in 1996. Erosion was classified from
slight to medium over most of the country ,with the average annual loss of soil about 5 000 kg/ha of arable land.
This  is  mainly  due  to  a  big  proportion  of  arable  land  being  located  on  slopes.  The  use  of  heavy  machinery  in
many regions resulted in severe soil compaction. Unfortunately, there is lack of information on the extent and cost
of  that  degradation.  Besides  a  significant  reduction  in  the  consumption  of  industrial  fertilizers,  the  decline  of
animal production has also affected soil fertility. This has been due to first: lower production and consequently a
lower application of manure; and second, a lower need for forage has constrained possibilities for rotation. One
may  see  that  farmers  have  tried  to  avoid  this  effect  by  reducing  the  intensity  of  forage  production  since  the
number of cattle dropped to half and the area used for forage only by 25 percent during the transition.
All of the above mentioned factors have contributed to a slowly declining content of humus in the soil (erosion by
run off, declining animal production followed by a lower input of organic components). Obviously, the process of
unbalanced consumption on soil fertility the impact of which is less observable in the short run, might threaten
farm production and sustainability in the future. On the other hand, extensively utilized intensive technology might
threaten  economic  viability  in  the  short  run.  Contamination  of  the  soil  has  been  inherited  mainly  from  the
environmentally improper mining of mineral materials and the expansion of the metallurgical industry during the
period  of  communist  industrialization.  However,  unacceptable  levels  of  heavy  metals  have  been  detected  only
locally, and the extent of pollution has not been very significant.
Soil fertility has declined and the area of abandoned land has increased in Latvia over the past decade. Reduced
liming has led to the acidification of agricultural soils. The decline of drainage systems maintenance has led to the
destruction of drainage systems and disturbed soil moisture conditions. The deterioration of soil fertility has been
associated with a general decrease in agricultural production and a shift from state and collective enterprises to
small-scale  and  subsistence  farming.  As  a  consequence  of  privatisation,  the  farm  structure  has  become
increasingly fragmented, agricultural land abandonment has increased, and local-level drainage works have not
been maintained properly.
Less than 20 percent of farmers in Latvia produce for the market or use modern farming methods in agriculture.
Continuing  increases  in  the  prices  of  mineral  fertilizers  and  pesticides  have  drastically  decreased  their
application. For instance, the use of mineral fertilizers in 1997 compared to 1990,decreased by 91 percent, and
that of pesticides by 88 percent. Data from the agricultural soil monitoring programme indicates that the negative
nutrient balance in farms has lowered the content of organic matter and potassium in soil by 10 percent. The use
of organic fertilizers in 1997 compared to 1990 decreased by 75 percent.
Most soils in Latvia formed on sand or loamy sand as parent material are, to some extent, acid. A state supported
soil-liming  programme  for  arable  land  decreased  the  percentage  of  acid  soils  from  64  percent  in  1964  to  16
percent  in  1985.  Annually,  180  000–200  000  hectares  of  acid  soils  were  limed  during  1971-1990.  Due  to  the
economic  conditions  after  1992,  the  arable  land  treated  with  lime  was  only  5  000–9  000  hectares  per  year-1.
Consequently, there is a rapid increase in acid soils. Soil acidification will not only result in a loss of soil fertility,
but also in an increase of the nutrient leakage associated with the lower soil buffering capacity.
The  area  of  arable  land  threatened  by  wind  erosion  is  230  000  hectares  or  14.7  percent  of  total  arable  land.
Water erosion affects 380 000 hectares or 24.3 percent of the arable land in Latvia. Erosion is caused by wind
and water and enhanced by certain forms of land use. The drastic decrease in agricultural production and the
area of arable land has resulted in a decrease in the intensity of land management (about 350 000 hectares of
arable  land  was  set  aside  land  in  1997).  Set  aside  land  is  mainly  located  in  areas  with  undulating  and  hilly
topography and less fertile soils where conditions are not favourable for agriculture. Therefore we can assume
that there is a reduction of the impact of soil erosion in Latvia today.
Farming methods in the previous Soviet agriculture, especially in soil tillage and in the use of heavy equipment on
wet  soils,  caused  soil  compaction  of  both  the  topsoil  and  subsoil,  with  subsequent  negative  impacts  on  the
permeability  and  fertility  of  the  soil.  The  results  of  agricultural  soil  monitoring  indicate  that,  compared  with  the
collective  farming  period,  the  distribution  and  extent  of  soil  compaction  is  decreasing.  Agricultural  machinery
today is comparatively old; more than 80 percent of machines were bought before 1990.
In  Lithuania,  the  most  common  types  of  erosion  are  water  erosion  and  wind  erosion.  The  latter  phenomenon
especially became common during the existence of collective farms due to the fact that most of the areas of land

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were utilized for sowing purposes. A massive cut down of bushes and small trees, as well as the tillage of soil, led
to these the above mentioned types of erosion. About 15% of utilized agricultural area is constantly being affected
by erosion and about 38% of land is exposed to potential risk by erosion.
Water erosion is especially severe during the period of melting snow and heavy showers. There are two types of
water erosion especially common in Lithuania: linear (when soil is broken up by the concentrated heavy water
flows)  and  plane  (when  water  is  concentrated  on  the  surface  of  land).  Both  types  of  erosion  cause  a  lot  of
damage.  Wind  erosion  is  not  as  harmful  as  water  erosion  but  it  should  not  be  underestimated.  This  type  of
erosion is common on arable land the size of which is 160 hectares and is especially strong during the snow less
winters when the soil is deeply frozen, and in the early spring when the soil dries up very quickly.
Most  of  the  soil  in  Lithuania  is  not  very  fertile.  Moreover,  its  physical  and  chemical  characteristics  are  not
favourable. The soil is not enriched with potassium and phosphorus. More than one third of the arable land in
Lithuania contain acid. A major part of such land is in the Western and eastern parts of Lithuania it constitutes half
of the total arable land. Due to the aforesaid, the conditions for plant growing become worse. As a result, there is
an increased need for fertilizers.
The mineral fertilizer industry experienced rapid development in the post-war period. At the same time, the use of
fertilizers in agriculture increased too. Special attention was paid to the accumulation of organic materials and to
the  appropriate  consumption.  With  the  purpose  of  rationally  using  organic  fertilizers,  a  National  Agri-chemical
Service was established, and highly qualified specialist have been employed within this system. The agronomic
services  within  each  state-owned  agricultural  enterprise  were  responsible  for  the  organization  and  control  of
fertilization. Despite the newly established systems, only the economically successful farms were capable of the
rational  use  of  fertilizers,  and  in  acquiring  the  necessary  fertilizers  and  guaranty  the  use,  which  is  safe  to  the
surrounding environment.
The production volume of mineral fertilizers in Lithuania is gradually increasing and has doubled during the last
five  years.  However,  the  demand  for  fertilizers  has  been  decreasing.  With  comparing  the  consumption  of
fertilizers between now and during the last decade, it has been noticed that consumption has decreased around
ten-fold. The latter sector indicates that agriculture is undergoing difficult times. However, from the environmental
perspective it is an encouraging fact.
In Romania the most important problem refers to the erosion phenomenon that affects about 6.3 million hectares
of  agricultural  land  and  shows  an  increasing  trend.  Wind  erosion,  phenomenon  recorded  on  almost  380  000
hectares shows a propensity for extension due to deforestation. Investigations show that about 150 million tonnes
of  topsoil,  which  includes  1.5  million  tonnes  of  humus,  0.4  to  0.5  million  tonnes  of  nitrogen,  phosphorus  and
potassium  and  large  amounts  of  nutrient  elements  (calcium,  manganese,  zinc,  molybdenum),  are  lost  through
erosion.  Additionally,  about  0.7  million  hectares  are  affected  by  landslides.  Investigations  show  that  this  very
dangerous erosion process is increasing. While there is no measure of loss of productivity, research in Romania
has  shown  yield  improvements  of  six  to  eight  times  where  soil  conservation  has  been  practised  on  severely
eroded  lands.  Erosion  also  has  an  economic  impact  through  siltation.  Apart  from  a  loss  of  aquatic  life  due  to
turbidity, at least 14 natural reservoirs have been wholly or partially silted up.
Soil compacting was recorded on 6.5 million hectares. Other aspects refer to the level of nitrogen (deficient on 4.8
million  hectares),  those  of  phosphorus  (deficient  on  6.2  million  hectares),  and  also  deficiency  of  other
microelements (zinc, iron, calcium, magnesium). Strong and moderate acidification was recorded on 3.3 million
hectares.  About  220  thousand  hectares  are  polluted  by  300  million  tonnes  of  solid  waste.  Oil  and  salty  water
affect other 50 thousand hectares. Chemical pollution affects 900 thousand hectares. Out of these, 200 thousand
hectares are totally unproductive for agriculture. Very acid soils due to acid rain (sulphide oxides and nitrogen
oxides) were found in the neighbourhood of chemical plants producing fertilizer (ammonium nitrate), sulphide acid
or non-ferrous metals.
Irrigation is another factor that put agriculture in the position of aggressor of the environment. Soils can also be
polluted during irrigation by water from very polluted rivers like the Olt, Arges, Mures, Siret, Prahova, and Trotus.
This  will  be  a  major  problem  in  the  future.  Although  the  area  presently  equipped  with  irrigation  infrastructure
covers 3.2 million hectares, less than 2 million hectares is actually irrigated because of system deterioration. It is
unlikely that more than 70 percent of the former area will be restored because of high pumping costs. As a result,
the negative impact of irrigation and particularly waterlogging is therefore likely to be somewhat reduced. In areas

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with irrigation systems and no drainage systems, soils get salty (about 1.2 million hectares). Soil fertility has been
affected  in  this  way  on  over  600  thousand  hectares.  Salinization  is  met  especially  in  the  steppe.  Water
evaporates and salts are concentrated on the ground. Irrigation in excess leads to changes in soil, meaning that
the level of the groundwater rises and salt concentration in soil increases. Water losses from irrigation (about 40
percent  of  the  total  use  of  water  for  irrigation)  lead  to  an  excess  of  water  in  soil  on  large  surfaces  (about  5.5
million hectares).
Pesticides  are  significant  sources  of  chemical  pollution  in  soils.  Pollution  due  to  pesticides  is  a  phenomenon
whose intensity, although decreasing rapidly to 25 percent of the EU level, has still exceeded maximum allowable
limits  (0.1  ppm3)  for  some  organochlorine  insecticides,  such  as  HCH  in  six  counties  and  DDT  in  eighteen
counties. Although herbicides have a much shorter persistence in the soil, their residues were found both in soil
and  groundwater  near  the  manufacture  plants  regardless  of  their  product.  On  the  whole,  while  there  is  no
comprehensive system to detect pesticide pollution, and packaging and instructions for use need to be improved,
the use of pesticides does not appear to be a major environmental issue, at present; however, there is a need for
pesticide  application  equipment  and  protective  clothing  to  be  available  on  the  market.  Among  soil-polluting
pesticides,  organochlorine  compounds  are  especially  persistent. 
In  many  cases,  concentration  of
organochlorines of about one ppm were found (this being a very high value). The problem should be no longer
serious, since the use of HCH and DDT was forbidden years ago and we have had to cope with their persistent
residues.
Animal  farms  are  an  important  pollution  source  to  all  environmental  factors.  Removing  animal  residues  from
animal farms pollutes first the water and, if water is not decontaminated, it affects soils, too. Part of animal waste
is  used  as  natural  fertilizer.  Waste  management  had  to  deal  with  11.3  million  tonnes  of  manure  from  livestock
farms. Residues from animal farms affect 900 hectares. About 76 percent of this amount was used by anaerobic
fermentation,  composting  and  administration  of  agricultural  land.  In  1994,  due  to  decreasing  use  of  pesticides,
about 6 190 tonnes of pesticides expired, exceeding by 68 percent the quantities registered in 1992.
In Slovakia the most important degradation processes in agriculture are water and wind erosion. More than 576
thousand hectares of arable land are affected by water erosion. The damage was caused mostly by the wrong
use of land, especially by improper plant rotation, very large plots, unsuitable agri-techniques and the improper
conversion  of  grassland  to  arable  land.  The  average  amount  of  washed  away  best  parts  of  soil  takes  2.8-3.0
million tonnes per year. Water erosion in the mountains is accelerated by the conversion of grassland to arable
use.
Roughly 390 000 hectares of arable land are affected by wind erosion in Slovakia. The damage, like that of water
erosion, is caused mostly by unsuitable infrastructure and land use, improper tillage, and the insufficient building
of windbreaks. Researchers have proved that a loss of a 10 mm layer of humus horizon results in a 2-4 percent
loss in yield. Crop yields decline on slightly eroded lands by 20 percent, on medium by 40 percent, and on heavily
eroded land up to 70 percent.
Land  acidification  is,  in  addition  to  acid  rains,  also  caused  by  using  physiologically  acid  fertilizers.  In  the  most
fertile soils of the Podunajská and Východoslovenská lowland basins, alkalization is also apparent. This is caused
by improper irrigation in localities with an intensive evaporation regime. Irrigation is also limited with high levels of
mineralized underground waters. The area of saline land in Slovakia is 70 000 hectares. In Slovakia more than
700 000 hectares of agricultural land suffers from compaction which is caused by improper agrotechnics (crop
rotation,  tillage),  and  especially  by  the  incorrect  use  of  agricultural  technology.  Biological  soil  degradation  is
mostly occasioned by high chemical dosages and soil contamination by other sectors (industry).
The land is a production source of national wealth. In the sense of AGENDA 21 (Rio de Janeiro 1992) it should
be used sustainably. The new economic and social conditions from 1990 to the present in the CEECs, do not
provide any conditions for the principles of the sustainable exploitation of the agricultural landscape, including use
of land. Shortcomings are mostly reflected in following land use areas:
·  

Decrease  of  nutrient  contents:  The  nutrient  content  is  below  the  level  which  is  agronomically  or
environmentally  unacceptable,  reflected  in  lowered  land  production  potential.  It  is  caused  mostly  by  low
manure  production  (rapid  reduction  of  animal  numbers,  for  example  cows  by  50  percent  compared  with
1990), lower application of industrial composts, sales of straw and also lower ratios of mineral fertilizers. In

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1995, 42 kg NPK in industrial fertilizers were applied to one hectare of agricultural land, which represents
only 17 percent of the 1989 level. The continuation of this trend will endanger our food self-sufficiency.
intensive water erosion: Only during the last 20 years, from slopes above five degrees has average 110 mm
layer of soil been washed away. According to some authors, the yields on less eroded fields become lower
roughly by 20 percent, on fields with medium eroded fields by 40 percent, and in most eroded lands by 70
percent and more.
land compaction: This is caused by heavy machinery, what is manifested in increased land resistance, due
to  cultivation  and  also  in  increased  fuel  consumption.  A  high  degree  of  land  compaction  is  also  an
obstruction for the broader implementation of land protective technologies (no till technology).
land  acidification:  This  is  caused  by  use  of  mineral  fertilizers,  mostly  nitrogen.  Land  acidification  is  also
increasing by a reduction of manure rations. Moreover, acid atmospheric depositions (emission falls) cause
land acidification which has mostly a regional character.
land alkalization: This is a result of irrigation mostly in locations with evaporation regime and is also limited
with the closeness of under ground mineral waters. The area of saline land in Slovak Republic is around 70
000 hectares.
land  sustainability:  The  land  as  an  important  natural  source  is  also  weakened  by  pollution  with  various
contaminants. They are represented by:
anorganic (non-degradable) contaminants: represented by heavy metals and metalloids accumulating in the
soil. In the Slovak Republic, there is 56 percent non-contaminated agricultural land, which is found in those
regions with the most productive land. 48 percent of land is indicated as being at risk (exceeding at least at
one harmful element A, A1 hygienic limits of MoA No. 531/1994). In the Slovak Republic, roughly 425 000
hectares  of  agricultural  land  is  under  emission  pressure.  Of  this  area,  151  000  hectares  are  manifestly
influenced by contaminant emissions which have an acidification influence. The acidification of agricultural
land  caused  by  the  deposition  of  SO2  and  NO  coinfluenced  with  physiologically  acid  fertilizers  covers  as
much as 80 percent of agricultural land.
the organic (degradable) contaminants: coming from used pesticides, also from crude oil breakdowns and
industrial agglomerations.

·  

·  

·  

·  

·  

·  

·  

The EU enlargement process is expected to increase the pressures to the soil because of increased agricultural
production.  This is why modern production methods as well as traditional ones must be used in order to infuse
sustainability into CEECs agriculture.

3.2 

Indirect effects on the environment

3.2.1  Energy management

The universal trend towards specialisation and intensification of production in agriculture has lead to an increase
in work during sowing and harvesting of crops, the use of more powerful machines to carry out the work in time,
the use of energy consuming apparatus for raising of livestock etc.  The intensification of production is reflected
by the rise in energy consumption in order to guarantee maximum income.  As it can be seen in the chapter of
“Energy balance”  the efficiency of consumption of energy by agriculture in the CEECs could be largely improved
and in this EU enlargement could play a significant role.
For example Hungary, during 1997, merely 3.4 percent of total energy consumption was consumed by agriculture
(including forestry) (HCSO, 1998, p. 170). Sector consumption of every type of fuel was seen to decrease very
substantially in the first half of the 1990s in comparison with average values recorded between 1986 and 1990.
The sustainable use of natural resources comprises many points. Energy in agriculture and renewal of energy
sources are issues of sustainability. In West European agriculture the increased use of non-renewable support
energy for crop production has decreased energy efficiency. Energy crops have been suggested as a possible
research area for alternative energy sources (Helenius, 1999). In many of the CEECs, agriculture is less energy
intensive than West European agriculture but on the other hand less energy efficient. If agricultural production is
increased in the CEECs with the enlargement process this could affect energy consumption as well, this is why
specific measures should be taken by the EU in order to increase energy efficiency in the CEECs.

3.2.2  Biodiversity

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Biological  diversity  in  its  various  forms  is  a  very  valuable  asset  and  needs  to  be  protected  as  it  increases  the
stability of ecosystems and productivity and is therefore one of the preconditions for sustainable agriculture. It is
also extremely important to preserve the gene fund because there are many precious, endangered, endemic and
relict  plant  and  animal  species.  As  biodiversity  is  possible  only  in  the  diversity  of  the  landscape  then  both
biological and landscape diversity is important. There is no doubt that future agricultural activity will depend on
genetic  diversity  and  on  the  ability  of  experts  to  find  and  choose,  from  among  various  species  and  sorts,
adequate types of plants and animals. These should be resistant to negative external influences, highly efficient in
energy input use, and adaptable to changes in production technology and consumer demands.
But  the  specialisation  of  the  agricultural  holdings  in  recent  years  had  a  negative  impact  on  crop  and  domestic
animal  diversity.    The  reason  behind  the  specialisation  is  that,  by  concentrating  on  one  type  of  product,  farm
management  is  simplified,  the  spreading  of  risk  among  several  production  types  is  reduced  and  production  is
intensified.  But the use of certified seeds and animals that ensure higher production output has put an increasing
pressure on traditional local breeds of crops and domestic animals. Helenius cites an FAO estimate, according to
which  75  percent  of  the  genetic  diversity  in  agricultural  crops  has  disappeared  in  the  past  hundred  years
(Helenius,  1999).  The  enlargement  process  is  expected  to  put  more  pressure  to  the  biotic  resources  in  the
CEECs since it will probably cause an increase in agricultural production.  This is expected to introduce methods
of  sustainable  agricultural  production  in  the  CEECs  that  are  less  damaging  to  their  rich  and  diverse  biological
resources.
In  Croatia  although  the  environmental  problems  caused  by  agriculture  are  not  as  extensive  as  in  other  CEEC
some damage in biodiversity has been caused in certain areas, such as at the basins of the rivers Drava and
Neretva  This  is  because  intensive  agricultural  production  is  concentrated  in  relatively  small  areas,  so  nitrate
inflows are greater than in other parts of the state, and soil erosion is therefore increased. Environmental pollution
due to intensive agriculture has caused some damage in biodiversity.
The  future  could  bring  a  greater  impact  of  agriculture  on  biodiversity  in  rural  areas,  especially  in  mountainous
regions,  where  intensive  agricultural  development  is  stimulated  by  agricultural  policy  measures.  However,  the
current  legislative  framework  strongly  protects  national  parks  and  game  reserves,  so  it  is  expected  that
conventional agricultural production development will be excluded form these areas. . For the purpose of genetic
resource  protection,  Croatia  follows  the  recommendations  of  the  World  Congress  of  National  Parks  and
Protected Areas (Caracas, 1993) which has defined the basic principles and determinants of biological resources
protection.
In  Hungary  substantial  results  have  been  achieved  in  the  field  of  the  protection  of  nature  during  the  present
decade. In the past few years, a number of studies published have dealt with issues connected with biodiversity,
both  in  general  and  also  in  relation  to  agriculture  (Láng  et  al.,  1994,  Márkus-Nagy,  1997,  Varga  et  al.,  1998).
Márkus  and  Nagy  (1997)  found  out  that  the  intensification  of  agriculture  has  played  a  significant  role  in  the
degradation  of  agricultural  landscape  and  other  habitats,  and  in  the  reduction  of  biological  diversity.  These
authors also stated the opinion that "despite intensification, in Hungary there are still large areas with agricultural
habitats  of  outstanding  value  with  respect  to  the  protection  of  the  natural  environment".  The  panel  of  the
Hungarian  Academy  of  Sciences  draws  attention  to  the  fact  that  "substantial  changes  and  damage  to  the
composition of the wildlife of this country have been caused by the incorporation into the Hungarian ecosystem of
inappropriate species of plants and animals" (Lánget al., 1994).
Biodiversity has been well preserved in Estonia and forms a very important natural asset, not only for the country
but also for the region. Many endangered species, including the bear, lynx, greylag goose and bumblebee, live
and  thrive  in  the  country.  Those  protected  include  210  species  of  plants,  30  species  of  fungi  and  299  animal
species.  Ten  protected  species  found  in  Estonia  are  also  included  in  the  IUCN  Red  Book.  The  biodiversity  of
Estonian natural habitats is the country's greatest advantage in comparison with others of intensive and extensive
agriculture.  The  realization  of  this  advantage  for  diversifying  agro-cenoses  is  the  main  precondition  for  the
sustainable  development  of  agriculture.  This  allows  for  an  increase  in  the  number  of  beneficial  insects  on
farmland to favour the efficiency of pollinators and entomophages of pest insects. As a result of diversification, the
productivity  of  both  cultivated  and  natural  plants  increases,  which  will  be  the  main  precondition  for  nature  and
human saving agriculture (Martin, A.-J.,Mänd, M., et al.).

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In  the  Czech  Republic  a  high  proportion  of  habitats  have  been  destroyed,  especially  wetlands,  semi-natural
meadows, field banks, scattered trees, small woodlands, and ponds. All Czech land was changed by agriculture
and forestry. In some regions, semi- natural habitats were formed due to traditional farming, but the proportion of
such areas is relatively small. It is estimated that 35 percent of mammals, 43 percent of birds and 36 percent of
fish  are  endangered.  There  is  an  increasing  danger  to  some  grass  ecological  systems,  connected  with  the
decrease in the intensity of agricultural production–leaving meadows and pastures fallow decreases the species
composition,  supports  the  spreading  of  invasive  and  non-indigenous  species,  an  invasion  by  tree  species  and
thus leads to the disappearance of rare species. These factors have a substantial influence on fauna and flora,
especially because of the relatively short period of time affecting the extent and numbers of the individual species.
A significant part of valuable areas are managed in Landscape Protected Areas.
In Latvia agro-ecosystems occupy 38.8 percent of the country’s territory, from these: 69 percent are arable lands,
and 1 percent is orchards. Owing to the rather low land use intensity during the last 50 years, as well as to natural
conditions,  agricultural  lands  play  an  important  role  in  the  whole  spectrum  of  biological  diversity  of  Latvia.
Population dynamics of plants and animals are closely connected with the dynamics of their habitats. Since the
thirties, the total area of forests has constantly increased, but the total area of agricultural lands has decreased. In
addition,  it  must  be  stressed  that  the  most  remarkable  decrease  has  been  observed  in  grasslands.  All  these
changes have had an effect on the fluctuations of the whole diversity of organisms and populations. Under the
socio-economic system present in Latvia since 1940, when part of the territory was intensely used, but the rest
was either used inefficiently or abandoned, ecosystems, biotopes and species were retained which had become
or  very  rare  extinct  elsewhere  in  Europe.  This  fact  increases  the  international  responsibility  of  Latvia  for  the
preservation of biodiversity from the continental perspective.
In  Lithuania  during  Soviet  times,  biodiversity  was  damaged  by  the  draining  of  reclaimed:  natural  bogs  and
marshes were drained, small rivers’  beds were straightened, small woods in fields and farmstead were cut down,
etc.  A  lot  of  different  chemicals  such  as  fungicides,  herbicides,  etc.  were  poured  on  those  crops  grown  in  big
arable land areas. The chemical and wastewater pollution of soil, lakes, rivers, the Kuršiai Lagoon and the Baltic
Sea  has  increased.  The  intensive  eutrophication  of  lake  has  also  started.  Because  of  these  processes  a
succession of flora and fauna, some species of plants, animals and fungus have all vanished. After the abolition
of  farmsteads,  traditional  farming  was  wrecked,  irretrievably  destroying  the  gene  fund  of  many  cultural  plants,
cattle  and  poultry.  At  present,  after  the  ruination  of  the  collective  farm  system,  individual  farms  make  a
considerably lower impact on biodiversity. The means assigned for land reclamation, supervision of mechanisms
and reconstruction is decreasing year after year in Lithuania. According to the priorities approved by the Ministry
of  Agriculture,  the  construction  of  new  drainage  systems  is  limited.  The  activities  of  non-governmental
organizations and international agro-environment funds are developing which prompt attention to be turned to the
deteriorating ecological situation in rural areas.
Considerable natural diversity has been maintained in Poland. The species, ecosystem and landscape diversities
are one of the highest in Europe. The character of Polish agricultural landscape, rich in ecotone zones and the
insignificant use of artificial fertilizers and pesticides are conducive to maintaining high biodiversity. Poland signed
(1992) and ratified (1995) the Convention on Biological Diversity. The Convention, as well as other signed and
ratified regulations, including national natural and environmental protection regulations, makes a cohesive set of
regulations which protects biological diversity in a complex and relatively effective way. Poland participates also
in  determining  the  European  network  of  protected  areas  (Nature  2000  and  ECOWET),  and  participates  in
UNESCO’s "Man and the Biosphere" programme, within which 7 biosphere reserves have already been set up
(Rzad Polski 1997).
The measures to protect biological diversity are undertaken in situ and ex situ. The majority of high value natural
areas, which are the mainstay to biodiversity, have been taken under legal protection in Poland. The system of
protected  areas  comprises  (GUS  1998):  22  national  parks  (0.94  percent  of  Poland’s  total  area),  1  201  nature
reserves (0.4 percent of the country’s total area), 105 landscape parks (6.6 percent of the country’s area), 334
protected  landscape  zones  (18.5  percent)  and  over  4  000  other  objects  with  other  forms  of  protection  (0.1
percent of the country’s area). Species protection comprises 111 plant species and 125 animal species, which
are legally protected across the whole country. In order to protect biodiversity it is crucial to maintain the domestic
species. In Poland, due to traditional forms of farming, numerous old cultivable plant varieties, animal breeds and

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other wild plant species (e.g. weeds) have been preserved. In recent years much has been done to maintain that
state.
The  main  dangers  to  the  biodiversity  in  Poland  do  not  seem  to  have  anything  in  common  with  agricultural
activities. New dangers occurred with suggestions to privatize state-owned forests or claiming the expropriated
land (before 1989) to enlarge properties. It should be expected that the realization of the government agriculture
development  project  –  especially  in  the  field  of  agricultural  production  intensification  and  farm  acreage
enlargement  will  bring  about  an  increased  threat  to  species  diversity  (e.g.  as  a  result  of  liquidation  of  ecotone
zones, intensified use of chemicals). Research clearly proves the likeliness of the threat: in the years from 1986
to 1992 the number of endangered plant species increased by an average of 5 percent. About 470 plant species
and 19 animal species are considered to be in the process of extinction (GUS 1998). Polish farmers’  customary
straw  burning  poses  a  threat  for  numerous  species  of  fauna  and  flora.  Despite  intensive  educational  efforts,
undertaken by environmental protection services, agricultural advisory centres and fire department, the total area
where straw is being burnt has not changed for years.
Agriculture  in  Slovakia  is  showing  signs  that  it  poses  new  threats  to  biodiversity.  These  are:  production
intensification,  destruction  of  biotopes,  and  changes  in  the  environmental  conditions  in  agricultural  landscape.
These lead to a reduction in natural and semi-natural areas, to a retreat of the key, precious and endangered
species, and also to genofund reductions in cultural plant species and varieties and domesticated animal breeds.
The  protection  of  ecological  stability  and  biodiversity  in  the  agricultural  landscape  is  strongly  dependent  on
schemes of natural resource exploitation and also on agricultural landscape management.
Intensively managed ecosystems of type "ager" on the arable land in the Slovak Republic are focused on large-
scale  crop  production,  and  they  occupy  the  largest  portion  of  agricultural  land  in  lowland  regions.  They  are
characterized by minimal biodiversity. In comparison with the lowlands, the biodiversity of mountainous and sub-
mountainous regions in the Slovak Republic is much higher. Participating there are many secondary ecosystems,
such  as  meadows,  rationally  exploited  pastures,  orchards,  vineyards  and  others  which  arose  as  a  result  of
human  activity  in  original  climax  forest  associations.  To  sustain  their  ecological  stability,  additional  efforts  are
needed (for example mowing) to prevent secondary succession. Also meadows, pastures and orchards in sub-
mountainous and mountainous regions significantly participate in global national biodiversity.
From  the  viewpoint  of  plant  and  animal  biodiversity,  probably  the  richest  was  the  traditionally  managed
agricultural landscape, which endured in Slovakia until the beginning of the second half of the 20th century. The
large number of species and areas of diverse plant associations and their associated animal groups secured:
o 
o 
o 
o 

a great variety of agricultural systems and proceedings;
prevailing extensive and semi-extensive exploitation of agricultural land;
low inputs of additional energy (chemicals fuels) and manure with organic manure; and
accommodation  of  plants  to  existing  natural  conditions  without  expressive  interactions  to  ecological
conditions.

With agricultural intensification (connected with high additional energy and material inputs, mostly chemicals) and
also with industrial development after World War II on Slovakia’s territory, land, air, ground, and surface water
pollution increased, and at the same time rapidly reduced the diversity of vegetation and animals. In this process
of environmental pollution, agriculture, as well as industry, played a conspicuous role. Ecosystem modifications
on  agricultural  land  resulted  in  more  plant  species  and  their  associations  being  put  on  the  list  of  endangered
species and associations. In the Red Book Flora Base of 1993, there are 934 endangered species of wild plants
(37,45 percent), 902 species of mosses (48,3 percent), and 1493 lichens (39,0 percent).
High performing mechanization also significantly caused biotic components of agroecosystems. Agro-technique,
together  with  chemical  application,  reduced  edafic  groups  of  small  invertebrates,  amphibious  animals,  reptiles,
birds  and  mammals,  whose  bionomy  is  immediately  connected  with  land  environment.  Mechanization  has
resulted  in  significant  changes  in  the  population  dynamics  of  some  species,  primarily  in  changes  of  natality,
mortality,  migration  and  feeding  regimes.  For  those  reasons,  biodiversity  protection  must  solve  those  conflicts
between  agricultural  activities  and  nature  and  landscape  protection.  One  complex  solution  calls  for  system
changes and the integration of agricultural and environmental policy.
In general it can be said that the CEECs have a very rich biodiversity, but an increase in agricultural intensity will
threaten  it.  The  main  threats  are:  pollution  (mineral  fertilizers,  plant  protection  products,  human  wastes);

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impoverishment and destruction of habitats for wild species; interruption of migration routes of animals; lack of
information and inventory of landscape destruction. As the rural landscape is the main general habitat for wild
species, animals, insects and different microorganisms providing life conditions, then the strategy of sustainable
agriculture  that  should  be  followed  in  order  to  integrate  the  CEECs  into  the  EU  should  provide  measures  for
biodiversity and landscape maintenance by farmers. Each farm is unique and original and has its own place in
the rural landscape. This creates conditions for biodiversity and landscape presentation.

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3.2.3  Conservation of the countryside

The  countryside  is  an  essential  aspect  of  agriculture.    It  is  doubtless  above  all  this  aspect  which  appeals  to
people outside agriculture, particularly city-dwellers and tourists attracted by its diversity and beauty.  The very
concept  of  the  countryside  is  a  complex  one.  Geographers  have  developed  a  systemic  model  to  describe  the
“landscape system”, which compartmentalises the main components of what we usually call the landscape.  By
this  systemic  approach,  it  is  possible  to  define  landscape  indicators  for  measuring  the  impact  of  agricultural
and/or environmental policies on the landscape. The determinant factors related to the effects of agriculture on
the landscape which the EU enlargement process must deal with, are the conditions of land ownership and land
utilization, the distribution of the respective branches of cultivation and production within the land areas devoted
to agricultural activity, the structural composition of plant production and animal production and the intensity of
production.
Poland’s most characteristic landscape is heritage countryside: small plots with various cultivations, divided by
forests  with  numerous  tree  varieties.  This  kind  of  landscape  is  the  dominant  one  in  the  central,  northern  and
eastern  districts  of  Poland  where  small,  individual  farms  prevail.  After  1945,  the  landscape  was  destroyed  in
northern  and  western  districts  where  state-owned  farms  had  biggest  share  of  agricultural  land,  managing  vast
areas.  The  collapse  of  the  state  farms  as  well  as  setting  up  of  the  land  turnover  market,  brought  about  new
dangers connected with taking over farmland for non-agricultural use and especially for housing and recreational
development. The danger occurs mainly in the surroundings of big cities and in the areas of high natural, tourist
and landscape values. Today dangers for the Polish landscape result from non-agricultural activity - first of all the
growing  fragmentarization  of  high  value  natural  areas  due  to  building  industry  pressure  and  the  threat  of  the
building of a highway and expressway network. Basic threats from agriculture are those bound up with pressure
for its intensification, enlarging farm acreage and production unification.
The  Czech  government  initially  established  a  hierarchical  structure  for  the  administration  of  the  Protected
Landscape Area. The local administration was directly responsible to the central office for landscape protection,
thus  favouring  national  over  local  interests.  Over  time,  it  had  to  move  toward  a  more  cooperative  approach,
however.  The  administration  developed  direct  relations  with  local  farmers,  emphasized  persuasion  instead  of
legal  enforcement,  and  sought  cooperation  with  an  environmental  NGO.  Experience  had  shown  that  local
interests needed to be included for effective protection. The administration did not have the financial and coercive
means to force its will upon recalcitrant farmers.
In Bulgaria during the period of socialist agriculture, all land was cultivated on a large scale with various annual
field  crops,  orchards,  vineyards,  and  roads,  where  irrigation  systems  as  well  as  storehouses  for  products  and
machines were built. With land privatization; the coming into force of the new plans for land redistribution in the
plain regions, the landscape is constantly changing. The large stands of orchards and vineyards are gradually
disappearing  and  being  replaced  with  annual  field  crops.  The  irrigated  fields  and  the  systems  for  surface  and
ground  irrigation  have  been  destroyed.  New  roads,  canal  networks,  small-sized  orchards  and  vineyards,  field
houses and drilled wells are now being created. A large part of the areas remain uncultivated and severely weed-
infested, which makes the plain regions ugly. In the semi-mountainous, and especially the mountainous regions,
the changes in the landscape are comparatively smaller. Here, the arable land was not allotted on a large scale
because of the unsuitable terrain, which is mainly under meadows and pastures.
In  Hungary  agriculture  plays  a  crucial  role  with  respect  to  the  protection  of  the  landscape.  The  agricultural
processes prevailing between 1960 and 1990 also, in many respects, resulted in a negative effect on the shape
of the landscape. Fields of enormous dimensions cultivated by state farms and production cooperatives made the
agricultural  landscape  more  monotonous.  In  the  first  half  of  the  1990s,  as  a  consequence  of  the  general
economic  recession  and  reductions  in  investments  in  production  infrastructure,  there  occurred  practically  no
change in the area of land devoted to agricultural cultivation. However, statistically speaking the changes which
occurred were not insignificant, considering that, in the early 1990s, the majority of areas devoted to horticulture
were reclassified as land areas withdrawn from cultivation.
The  effects  on  the  landscape  resulting  from  agriculture  in  the  1990s  can  be  divided  into  two  groups.  The  first
group is the favourable aesthetic change which was derived through a more diversified operational structure, and
produced  as  a  consequence  of  the  deconcentration  of  the  dimensions  of  agricultural  enterprises,  though  the
undoubtedly evocative, attractive sight of the wheat fields edged with poppies represents a step backwards from

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the  aspect  of  agronomic  and  economic  considerations.    The  second  one  is  the  substantial  growth  of  areas
neglected, uncultivated, or cultivated without due care has a deteriorative effect on the landscape, at the same
time raising issues of plant health and hygiene.
Estonia’s  landscapes  include  agricultural,  urban,  agricultural  and  areas  of  wilderness.  Estonia  has  a  large
proportion  of  natural  landscapes  including  forests,  coastlines  and  bogs.  It  also  has  man-made  landscapes
including farmland, towns and mines. Development exerts pressure on Estonia’s natural environment. However, it
should  be  noted  that  the  area  of  land  covered  by  buildings  in  Estonia  is  small  compared  to  other  European
countries. Also, survey results show that the area of cultivated land in Estonia decreased between 1990 and 1995
as agricultural production declined during the first years of independence.
In  Latvia  the  physical  landscape  is  shaped  by  a  continuous  interaction  between  nature  and  human  activities.
Economic,  ecological  and  socio-cultural  processes  influence  its  development.  In  addition  to  providing  wildlife
habitats and being a source of economic gain, landscape also reflects cultural heritage and aesthetic values. In
Latvia there are practically no more untouched natural landscapes. Landscape and biodiversity in the agriculture
of Latvia today are very closely connected, because the landscape is the basic precondition for biodiversity in
agriculture.
In Lithuania the implementation of market principles in the economy has caused changes in the formation of the
landscape. The restoration of private ownership of land has increased diversity in land utilization, including the
widening of arable areas, logging, construction and so on. In time, the conditions for a more stable functioning of
the landscape will materialize. A relative surplus of agricultural produce means that some previously cultivated
land  is  undergoing  a  re-naturalization  process.  This  process  is  leading  to  the  revival  of  natural  plants,  the
rejuvenation of soil formation processes and an increase in the potential productivity of soil. Areas drained have
diminished  tremendously.  At  the  same  time,  urbanization  is  increasing.  The  future  dynamics  of  landscape
diversity will depend to a great extent on public efforts to implement a sustainable development strategy.
In  Slovakia  the  activities  of  intensive  agricultural  production  in  the  former  economic  regime  have  had  more
negative impacts on agriculture landscape. The semi-natural grass-covered grounds which for many hundreds of
years were environmentally managed (such as mowed meadows and pastures) represent the highest diversity of
species and plant societies in agricultural land in Slovakia. In the last few decades, the meadow ecosystems in
Slovakia have been considerably changed. Natural meadows in the alpine zone are significantly endangered by
global climate warming. Copses in higher mountain ranges are also endangered.
The  abandoning  of  traditional  farming  methods,  and  the  pasturing  of  enormous  sheep  and  cattle  herds,  which
were considerably reduced in size after 1990, resulted in the degradation and reduction in species diversity. In
this way, mountain ranges in regions of the Lower Tatras, Polana and Eastern Karpaty, and others (Uhliarová,
Krištín,  at  all.  1998)  were  changed.  In  the  last  40  years,  many  semi-natural  meadows  and  pastures  were
transformed  into  intensive  grass  fields  and  the  original  species  composition  was  substantially  changed.  In  the
sub-mountainous and mountainous regions of Slovakia, there are an increasing number of abandoned meadows.
The meadows are often extremely steep and not reachable by mechanization, and thus for the owners they are
economically worthless. The tilling of meadows also contributed to the loss of natural copses. The semi-natural
meadow ecosystems, particularly mezofilic meadows and meadows on the flood plains of lowland rivers, should
be listed among the most endangered plant societies in Slovakia.
Xerotherm vegetation, that is plants that can survive in dry and hot environments, are very important from the
standpoint of anti-erosion land protection. In the last few decades, large areas of xerotherm vegetation have been
ruined. The main factors causing this situation were tilling, afforestation with non-native trees (locust tree, pine),
cutting and constructing recreational houses. In the most intensive lowland areas, where large-scale technology
was  most  disseminated  (enterprises  with  3–5  000  hectares  of  agricultural  land),  the  former  varied  landscape
changed  into  a  uniform  landscape  type;  the  "agricultural  type"  or  "cultural  steppe".  Large-scale  intensive
agricultural production left enormous environmental damage in the agricultural landscape. It was manifested by
joining plots and the removal of functional fresh vegetation, without consideration in landscape configuration and
the principal ecological linkages. Plot enlargement was done without respect to the criteria of land and ecological
anti-erosion protection. This situation in principle still exists.
In  general  it  can  be  said  that  the  countryside  in  the  CEECs  has  been  relatively  well  preserved.      The  EU
enlargement process is expected to affect the agricultural production as well as other economic and social factors

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of rural communities in the CEECs, but special care must be taken so as not to create such a disruptive influence
to the countryside of these countries.

4.

Conclusions and outlook

Accession to the EU is conditional upon acceptance of the acquis communautaire which, compared to regulations
prevailing  in  the  applicant  countries,  prescribes  rather  strict  standards  and  norms  related  to  such  issues  as
environmental protection, transport, consumer protection and safety in the workplace. Without doubt, introducing
these  standards  will  benefit  the  population  in  the  applicant  countries  and  set  in  train  a  modernization  process
which,  otherwise,  without  external  pressure,  would  probably  take  much  longer.  Seen  from  the  narrow  angle  of
foreign trade, however, the application of the EU norms is a mixed blessing entailing more costs than benefits.
Among the benefits, consumer confidence in the ‘old’  EU countries would probably increase given the guarantees
that the commodities and services offered by suppliers from the ‘new’  eastern member countries comply with EU
levels of quality. That may help to increase exports from the ‘new’  to the ‘old’  EU members.

Costs, however, will be more significant than gains. Accepting EU standards means that farmers are confronted
with an obligation to invest in order to reach the standards required or with ever increasing production costs – or
in most cases both. This is a natural consequence of levelling the playing field for producers in the ‘old’  and ‘new’
EU countries. In the process, the price competitiveness of the eastern suppliers would doubtless deteriorate. A
crucial issue is the timing of the adjustment to the EU standards. If the new members are granted no temporary
exemptions, all the adjustment costs would emerge in the final years prior to accession. If very short transitory
arrangements are put in place new members will have a few additional years in which to apply the stricter norms.
The longer the transitory period, the less concentrated the adjustment may be. In any event the new members will
face higher production costs after the adoption of standards than before, although costs may differ according to
the products produced, depending on the specific technology used. Increased production costs detract from the
competitiveness of those supplying the domestic market vis-à-vis importers and put exporters at a disadvantage
in other EU-country markets.

A  candidate  country  from  Central  and  Eastern  Europe  or  the  Mediterranean  will  also  have  to  embark  upon  a
gargantuan task of approximating primary and secondary legislation, enforcing new policies, and enhancing the
capacity of courts of justice to deal with legal conflicts concerning many aspects of EU law and competition policy.
In  certain  areas,  such  as  environment  protection,  consumer  protection,  veterinary  control  and  plant  health,
enforcing legislation will require that laboratories be set up, investment be made in testing equipment, inspectors
and laboratory personnel be trained, etc. In most cases, the candidate country will not necessarily be in position
to provide such equipment or knowhow from domestic sources and will, therefore, be obliged to obtain them from
abroad. Consequently, for a new Member State, the adoption, implementation and enforcement of the acquis will
entail considerable economic and financial costs that will have to be borne over a relatively short period. For low-
income countries, the costs may be so large in proportion to national income as to be prohibitive or they will call
for extensive periods of transition.

The CEECs are already on the way to adopting the acquis communautaire relating to single market legislation
and  mutual  recognition  of  norms  and  standards;  this  is  being  undertaken  within  the  framework  of  the  Europe
Agreements  and  with  considerable  financial  assistance  from  the  PHARE  programme.  Since  almost  complete
implementation of the acquis is a key condition for accession, the candidate countries are expected to implement
this comprehensive body of primary and secondary legislation from the day of accession or, in some areas, to
arrange transitory arrangements. The costs of complying with existing EU legislation, norms and standards vary
considerably from one area to another. For example, adopting EU company law is mainly a question of ensuring
appropriate consistency between a number of legal texts and it carries relatively few direct financial implications.
On the other hand, adopting EU legislation in the field of environmental protection, animal health and consumer
protection entails, for example, setting up administrative and legal procedures needed to enforce legislation and
creating  the  institutions  and  laboratories  to  conduct  the  physical  control  of  norms  and  standards.  In  addition,
complying  with  norms  and  standards  at  the  enterprise  level  will  call  for  comprehensive  and  costly  changes  in

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production  processes,  retooling  and  investing  in  new  applications.  As  already  emphasized,  the  financial
implications of all this may be considerable, amounting in the case of the low-income CEECs to several per cent
of their annual GDP: a cost that will have to be sustained over an extended period.20

To  some  extent,  the  macro-economic  and  financial  costs  of  adopting  the  acquis  will  be  offset  by  the  financial
assistance to be granted via the EU Structural Funds. Even with the ceiling set for subsidies under these Funds,
most CEECs can expect to receive grants amounting to some 4-5% of GDP over an extended period. In many
cases  these  grants  will  serve  to  fund  various  infrastructure  and/or  environmental  projects,  thus  allowing  the
country  to  embark  upon  a  rapid  implementation  of  the  acquis,  and  so  reduce  the  duration  of  the  transitory
arrangements.

?ssessment  of  the  costs  and  benefits  of  application  of  the  CAP  is  a  highly  complex  venture,  requiring  the
formulation of a view on the state of and future development of supply and demand in a large number of market
segments, the development of the CAP itself, the reaction coefficients of consumers. Owing to the fact that the
CAP operates at the level of individual product markets and with specific rules of the game for each product, the
task of estimating costs and benefits of accession in this area is a daunting one. Most of the quantified estimates
of the effects of the CAP in fact provide partial and static or, in some other cases, highly aggregated results. This
is  unfortunate  but  not  surprising  in  view  of  the  difficulties  of  taking  all  aspects  of  the  adjustment  process  into
account. Several factors need to be taken into account in order to have a clear picture of the outcome. These are:

·  
·  
·  
·  

the growth of productivity in the different segments of agriculture,
the evolution of national agricultural prices in the period up to accession,
the evolution of the CAP itself (the ‘moving target approach’),
costs to households in conjunction with the increase in consumer prices.

Accession  of  CEECs  to  the  E.U.  implies  the  removal  of  barriers  to  agricultural  and  food  trade  as  well  as  the
adoption and application of veterinary and phytosanitary rules, commercial policies all of which cause politically
sensitive accession issues. Social and economic problems may occur, bearing in mind the low productivity and
hidden unemployment of CEECs. Although there is worry that accession will dramatically increase the budgetary
burden of the CAP and the agricultural production in those countries, the trade effects of enlargement and their
implications will be more limited than initially expected, although some uncertainty remains.

In regard to the land use issues, the establishment of unequivocal and clear land-ownership relations is essential.
In the future, the development of the farming structure should be shaped basically by the market relations and
market tools, principally through an efficiently functioning land market. This means minimising the restrictions on
land  ownership  and  land  use,  as  well  as  on  ownership  and  lease  rights.  The  transfer  of  ownership  and  lease
rights should be simple and cheap. The greater the government intervention in the operation of the land market,
the slower and more costly the shaping of the new farming structure will be. The leasing of land will have a very
important  role  in  shaping  an  efficient  farming  structure,  and  the  conditions  for  leasing  must  be  determined
fundamentally by the relation of supply and demand.

The output of agricultural production in the CEECs is stable after the dramatic decline of the 1990s, but it is in
most CEECs still below pre-transition levels. This does not mean that there is no potential for overproduction in
the CEECs, when further integration has been achieved in EU structures. In this regard there are two main weak
points in the Agenda designed for the CEECs. First, the limited reform in the dairy sector and the non-reform for
sugar leave these regimes highly distortive, as evidenced by the large expansion of output that might occur in the
CEEC if quotas are lifted. According to estimates there will be a dairy surplus of 1.7 million tonnes in the CEECs
by 2007 (Prospects for Agricultural Markets 2000-2007).  This is a result of the large gap of protection between

20  According to a recent estimate, the total cost of applying the EU standards and norms would, for Hungary, be in the range of 50-
120 per cent of one year’s GDP (to be extended, of course, over a long period of time). Dezséri, K. (1999) Az Európai Ùnióhoz
való csatlakozás várható költségei (Expected costs of the EU accession for Hungary) Külgazdaság 1/1999 (Budapest) p. 56 .-
72.

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these products and less protected commodities such as wheat and beef. The second weak point is the potential
use of export subsidies in the cereal sector to maintain cereal market prices above intervention prices. If this EU
policy,  pursued  in  the  EU  in  recent  years,  is  continued  and  extended  to  the  new  members,  it  will  generate
additional incentives for grain production in the CEECs and expand net exports, especially for the more highly
protected  types  of  cereals,  i.e.  coarse  grains.  According  to  estimates  the  forecast  for  the  CEEC-10  cereals
surplus would be 10 million tonnes by 2007, coming on top of a EU-15 cereals surplus of 41 million tonnes for the
same  year  (Prospects  for  Agricultural  Markets  2000-2007).  A  very  important  factor  in  the  creation  of  these
surpluses would be the world market prices.

Another  problem  will  occur  with  the  implementation  of  the  CAP  quotas,  especially  for  sugar  and  milk  for  all
CEECs, as it will be complex because of the inefficient administration of those countries. Despite the fact that in
progress  much  discussion  is  on  the  reform  of  the  milk  and  sugar  regimes,  it  is  quite  possible  that  most  of  the
CEECs will have to face the existing quota system. The budget pressures, resulting input from direct payments to
farmers  in  the  CEECs,  could  stimulate  CAP  reforms.  Both  limits  on  compensation  payments  over  time
(degressivity)  and  per  farm  (modulation)  could  be  returned  to  the  table.  However,  at  the  same  time,  budget
pressures may complicate efforts to reform sectors such as dairy and sugar where price and quota cuts may not
be politically feasible without sufficient budgets to compensate farmers.

In regard to employment in agriculture, its share total employment in CEECs is relatively high with the exception
of the Czech and Slovak Republics. For Poland the figure is above 25 percent, for Hungary and Slovenia above
10  percent.  The  effects  of  some  of  the  outcomes  of  the  liberalisation  process,  may  include  high  levels  of
unemployment in Poland and Hungary, inadequate safety nets and rising consumer prices in all three countries
and a rapid fall in agricultural profitability.

The  main  impacts  of  agriculture  on  sustainability  and  the  environment  in  the  CEECs  are  a)  soil  acidification,
degradation, salinization and erosion, b) biodiversity loss, c) the few remaining traditional farming systems are
threatened, d) intensity levels of fertilizers and pesticides have fallen to very low levels after the transition relative
to the period preceding transition leading to slowly growing nutrient deficiency in many soils, on the positive side,
environmental degradation from the excessive application of fertilizers and pesticides has stopped e) degradation
of  waterways  due  to  improper  nutrient  management  systems  and  poor  storage  facilities  for  manure  and  other
harmful emissions is still present, f) there is a potential danger that intensity levels will rise very quickly in some
CEECs because of possible access to new markets and a possible increase in producer prices. In combination
with improper farm management practices, this rise in intensity levels will cause environmental degradation (e.g.
eutrophication of waterways or increased ammonia emissions).  Most of these issues can be adequately dealt
with the incorporation and proper application of the acquis communautaire by the governments of the CEECs.

Finally it can be said that the costs and benefits of accession in the countries concerned in the field of agriculture
can not be precisely calculated. Given the degree of uncertainty in all decisive issues relating to accession, this
shortcoming  was  inevitable.  However,  it  can  generally  be  said  that  the  balance  between  the  costs  and  the
benefits tends towards zero, in the sense that depending on the specific variables of the scenario applied, the
balance  is  either  negative  or  positive.  Uncertainty  also  prevails  as  to  the  level  of  individual  products.  This
uncertainty should bear a clear message for applicant country negotiators and the EU alike. A conscious search
for  modalities  conducive  to  a  manageable  adjustment  process  and  a  sense  of  innovation  for  country-specific
support programmes seem to be a prerequisite for the countries’  successful accession.

In summary it can be said that the share of employment in agriculture in CEECs is relatively high with the
exception of the Czech and Slovak Republics.  For  Poland  the  figure  is  above  25  percent,  for  Hungary  and
Slovenia above 10 percent.

The effect of some of the outcomes of the liberalisation process, such as high levels of unemployment in Poland
and  Hungary,  inadequate  safety  nets  and  rising  consumer  prices  in  all  three  countries,  and  a  rapid  fall  in

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agricultural profitability, production and employment, has been a disillusionment with the new set of values.  All
that  has  tended  to  undermine  public  support  for  reform.  Behind  the  divergence  of  values,  and  subsequent
disillusionment, lies something much bigger: the collapse of an entire belief system, a deeply traumatic event for
the peoples concerned.

Future measures

Developing  rural  areas  in  Eastern  Europe  is  a  considerable  task  and,  above  all  an  important  aim  of  present
policy. Starting with a fairly similar structure of business and population in nearly all the rural areas in CEECs, the
socio-political system and its objectives have led to severe changes in population and economic structures and
also to similar negative consequences. Experts have used nearly the same words to specify measures that ought
to be taken to combat them:
v  qualitative improvements (infrastructure) in rural areas;
v 
v  measures to improve the well-being of individual rural inhabitants.

regulation of the development of agglomerations that have negative impacts on rural areas;

As  in  regard  to  the  CAP,  the  limited  reform  in  the  dairy  sector  and  non-reform  for  sugar  leave  these  regimes
highly distortive, as evidenced by the large expansion of output that might occur in the CEEC if quotas are lifted.
The use of export subsidies in the cereal sector to maintain cereal market prices above intervention prices also
creates  large  distortions  in  the  market.  If  this  EU  policy,  pursued  in  the  EU  in  recent  years,  is  continued  and
extended  to  the  new  members,  it  will  generate  additional  incentives  for  grain  production  in  the  CEECs  and
expand net exports, especially for the more highly protected types of cereals, i.e. coarse grains.  The  following
measures  applied  in  several  countries,  which  are  not  widely  used  in  the  CAP,  could  provide  alternative  policy
options in order to remedy the distortions created in the markets which will be amplified if the CAP is extended to
the CEECs:
- decoupled income payments: The original Production Flexibility Contracts offered by the US are considered in
the WTO as green box support. The payments are intended to support farmers' incomes and are financed by the
Treasury.  Decoupled  payments  are  not  tied  in  with  the  volume  of  production  or  productive  factor  inputs  or  the
level  of  the  market  price.  Direct  income  payments  may  be  based  on  historical  entitlements,  a  farmer's  income
level or on an established minimum income. Besides serving as an instrument of income policy, the direct income
payment could also help to work towards certain structural or agri-environmental policy aims, as the government
determines the criteria on which payments are provided or allocated. Linking the payments to specific goals, can
be described as of form of 'recoupling' or 'cross compliance'. In the second phase of this research project, it could
be examined how decoupled income payments may help achieving the objectives of the CAP.
- subsidised saving funds for farmers (income stabilisation funds): Such funds are used in Canada and Australia
to  primarily  suppress  income  instabilities.  This  is  generally  done  by  establishing  a  fund  which  receives
contributions from farmers during good years in order to provide withdrawals in poor years. Governments may
match  basic  contributions  or  may  pay  additional  interest  on  funds.  Some  of  the  advantages  of  this  income
stabilization measure concern the comparatively low administrative costs and the provision of protection at the
farm  level,  rather  than  protection  of  crop  yields  and/or  prices  individually.  Subsequent  analyses  of  this  policy
instrument  should  show  whether  income  stabilization  funds  could  be  an  alternative  for  current  EU  income
stabilisation policies.
- risk management programmes or insurance programmes: These are found in various shapes all over the world.
Various kinds of risks are involved, such as animal and crop diseases, abnormal weather or natural conditions
(drought, hail, frost, heavy rain etcetera), infra-structural collapses (electricity). Most of the current programmes
are  intended  to  provide  short-term  income  stabilisation,  without  interfering  significantly  with  markets  for
agricultural  products.  In  general,  risk  management  programmes  do  not  serve  the  purpose  of  price  or  income
assistance  for  farmers  who  have  structural  difficulties.  Further  analysis  should  consider  whether  risk
management programmes could form a sort of safety net for EU farmers. And if so, in which shape and under
which conditions risk management programmes should be provided to farmers. In this respect, the responsibility
of farmers to restrict risks should be ad-dressed, as well as options for co-financing.

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-  export  credit  programmes:  Among  other  countries,  the  US  and  Australia  facilitate  the  provision  of  credit  for
agricultural  exports.  Export  credit  programmes  are  directed  at  export  promotion.  Export  credit  (guarantee  or
insurance) is usually provided for export of commodities to countries for which credit is necessary to increase or
maintain  exports.  Additional  research  is  required  to  assess  whether  export  credits  could  be  an  effective
instrument to assist agricultural export of the EU and whether it could be an alternative for or a supplement to
export  subsidies.  This  instrument  can  be  considered  in  relation  to  specific  markets  (countries,  regions  of  the
world) as well as to specific products. What concerns the selection of countries, it may be linked to development
assistance policies.

Price support as an alternative measure was already applied in the EU in the past and seems to be incompatible
with  future  WTO  commitments.  However,  decoupled  income  payments,  income  stabilisation  funds,  risk
management programmes, and export credit programmes may offer promising alternatives.

Some measures that could support CEECs during their transitional period could be:
Farm Network
The  aim  of  Farm  Network  is  to  enhance  production  quality  and  animal  health.  It  offers  advisory  and  technical
services, which help with the identification and control of disease and other production-limiting factors on farms.
Customers have access to complete packages that include testing, consultancy and diagnostic capabilities.
Emergency Response
Emergency response is managing biosecurity and food safety threats. Emergency Response is able to mobilise
teams  of  specialists  from  all  parts  of  the  organisation  and  trained  contractors  to  manage  and  contain
emergencies rapidly. The services are available to the government, industry sectors and to offshore customers.
Assurance Services
The goal of the Assurance Services is to enhance competitive positioning for producers, processors, distributors
and retailers. It works in partnership with them providing consulting, advice, systems and training about achieving
standards, enhancing quality and adding value through supply chain management.
Lab Network
Lab Network provides superior laboratory analysis for producers, processors and retailers. Lab Network helps
customers to enhance their business by adding value to their products in terms of food safety and assurance.
The laboratories provide an extensive range of analytical and consultancy services to a wide range of customers
in the CEECs and overseas.

4.1  Short-term measures

4.1.1 Measures in regard to the economy

European agriculture is now facing economic, environmental, political and social pressures which are forcing a
fundamental  reappraisal  of  agricultural  production  systems.  The  main  challenges  of  the  enlargement  for  the
CEECs  lie  in  restructuring  their  agriculture,  harmonizing  standards  and  improving  the  quality  of  their  products.
The  problems  that  might  require  the  harmonisation  of  legislation  regulating  food  safety,  and  food  and  sanitary
standards constitute a subject of major concern indeed.   More importantly the CEECs have to adopt the acquis
communautaire from scratch at the same time that they are restructuring their public sectors and experiencing
major  changes  in  their  economies.    On  the  other  hand  CEECs  have  already  adopted  an  important  amount  of
legislation through the EEA agreements.

Today  farmers  in  Europe,  particular  in  Central  and  Eastern  Europe,  are  faced  more  and  more  not  only  with
constraints originating from their micro and neighbouring environments, but with constraints that are generated on
the macro level too. Among these, of particular importance are constraints related to:
o 

changes  in  the  economic  system  and  policies  and  pressures  designed  to  increase  competitiveness  and
profitability on domestic and global markets;

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o 

the need to assure the long-term viability and preservation of existing natural resources in order to comply
with  new  emerging  requirements  concerning  access  to  international  markets  and  by  doing  so,  sustaining
household food security.

Farmers in CEECs are now faced with a new political and economic environment, one which results in structural
changes  and  a  transfer  of  responsibilities  and  decision-making  to  the  farm  level.  The  speed  of  this  transfer
depends not only on the implementation of national structural policies, but also on the development of support
institutions as well as on farmers' willingness and ability to manage new responsibilities. This is to say that not
only will they enjoy the freedom, for instance, to decide what to produce and how to produce it (which they did not
bear  have  before),  but  that  farmers  will  also  have  to  take  responsibility  for  and  the  risk  of  those  decisions.  To
assure  the  sustainability  of  their  farms,  they  will  also  need  to  adopt  new,  and  in  most  cases,  environmental
friendly technologies and practices.
Since  the  technical  efficiency  of  natural  resource  use  in  CEECs  is  lower  than  in  the  EU  in  the  short  run,  an
attractive approach for both farmers and policy makers might be to boost production by increasing the volume of
output  per  unit  by  applying  conventional  production  technologies.  Even  if  there  was  a  market  for  increased
production  such  an  orientation  would  potentially  lead  to  increased  subsidization,  not  to  mention  the  negative
impact  on  the  environment.  A  alternative  approach  would  be  to  increase  technical  and  economic  efficiency  at
either  the  existing,  or  just  slightly  higher,  level  with  regards  to  the  use  of  production  factors  (inputs,  labour,
capital). Both approaches require a knowledge of existing and alternative farming systems and farm management
principles and skills.
In order to improve the state of sustainability profitability and stability in the CEECs, institutional constraints need
to be solved initially. This can be achieved by:
-  

Privatization  programs  must  be  completed.  Property  rights  to  land  need  to  be  clearly  established
through entitlement of ownership rights so that farmers will dare to make investments in land, facilities
and  equipment.  A  properly  functioning  land  market  is  lacking  in  many  cases,  partly  because  of
incomplete entitlement of ownership rights. The property rights problems may be more quickly solved in
some of the CEECs, in which private farming was common even during socialist time and has continued.
Functioning  credit  markets  are  missing,  are  based  on  personal  relations  or  excludes  smaller-  or
medium-sized  farms.  Because  of  unstable  conditions,  farmers  are  also  reluctant  to  take  the  financial
risks  offered  by  loans.  Taking  into  account  the  liquidity  constraints  and  high  interest  rates  often
demanded  by  private  money  lenders,  it  would  be  of  utmost  importance  to  improve  credit  markets,
possibly through the establishment of micro-loan schemes, in a similar fashion to those provided by the
Grameen  Bank  in  Bangladesh.  The  need  is  to  improve  access  to  credit,  particularly  for  small  farmers
and SMEs.
Extension  systems,  input  and  equipment  supply  and  infrastructure  are  missing  in  most  CEECs.  In
virtually  all  CEECs  the  extension  system  seems  to  be  inadequate  or  insufficient.  Farmers  lack  the
technical assistance needed. Also infrastructure like sewage systems is missing.
The educational background of farmers is poor. Vocational schooling must be improved. Education in
farming  has  to  be  broadly  based,  giving  foundations  for  crop  and  animal  husbandry  and  basic  farm
management.
Legal restrictions have to be lifted for the purchase of land by foreigners in order to increase foreign
investment  in  the  agro-food  sector.    Although  in  many  CEECs,  land  taxes  are  low  and  there  are
generous  tax  exemptions  for  land  purchases,  there  is  still  scope  for  reform  in  the  laws  of  the  land
market.
Definition of a coherent rural development and structural policy;
Adoption of implementing regulations;
Introduction and application of veterinary and plant-health rules, especially as regards inspection
and control with a view to protecting the European Union's external borders;

-  

-  

-  

-  

-  
-  
-  

The CEECs should be given market access to the EU. This should be done in a careful way so as not to create
enormous budget problems for the EU.
Some  examples  of  specific  cases  can  be  given.  In  Romania  two  critical  factors  affecting  farm  adjustment  to
structural change have been mentioned (Florian and Toderoiu, 1999): (a) still unclear legal ownership of land and

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related productive assets and (b) a lack of coherent sectoral strategies for agricultural development, both from
the  perspective  of  the  utilization  of  available  resources  and  from  Romania’s  agrifood  sector  complying  with
European competition rules and standards. These authors have also made a number of conclusions related to
the increase of farm efficiency and food security. Their recommendations are the following:
o 

Increase the marketing of agricultural production on family farms. On the basis of this, farm cash flow should
increase and financial vulnerability should diminish.
Establish  partnership  institutions  that  would  represent  private  farmers’  economic  interests  against  other
poles of interest from agriculture, with a view to increase agriculture’s negotiating capacity.

o 

The attitudes of Polish farmers towards the issue of privatisation have been studied through an ordered probit
model (Florkowski et al., 1997). It was found that a higher level of education, increasing farm size and a less-
mixed production profile affected attitudes toward privatization positively.
The main goals for developing the agricultural sector in Estonia are a typical case for other CEECs. Those are:
o 
o 
o 
In regard to land abandonment more attention should be paid to fields which are out of production and to making
use  of  their  potential  to  produce  alternative  energy  or  afforest  them.  In  order  to  prevent  a  rapid  decline  in  soil
fertility  and  the  growth  of  weeds  in  the  fields  which  are  temporarily  out  of  production,  these  fields  should  be
conserved with an association of grasses (Vipper, H., Põder, I. et al).

to ensure satisfactory income for farmers;
to supply Estonian consumers with healthy food;
to ensure stable employment opportunities in the countryside;

4.1.2  Measures in regard to the social dimension

farm productivity is sustained or enhanced over the long-term.
adverse impacts of natural phenomena on agriculture must be minimized.
the net social benefit derived from agriculture is maximized.

In regard to social issues in rural areas of the CEECs the following must be dealt with:
·  
·  
·  
Such  farming  systems  could  improve  the  well-being  of  individual  farming  families  by  increasing  overall
productivity in the context of both private and social goals. They also need to be sufficiently flexible to manage
risks associated with variability of climate, markets and legislative and policy measures. To be able to design and
to  develop  such  farming  systems,  it  is  of  paramount  importance  to  have  the  appropriate  knowledge  about  the
environment (natural, social, economic, political) in which farmers operate in order to assist them in the adoption
of appropriate production and management practices.

4.1.3  Measures in regard to the ecological dimension

The situation in the CEECs is that there is an ongoing low level of the use of agrochemicals in agriculture, mainly
due  to  the  lack  of  capital,  and  the  following  resting  of  nature.  The  countries  in  transition  to  a  market  economy
have  to  establish  new  rules  for  economic  activities  and  to  redefine  agricultural  policies.  Environmental
considerations have not had a priority status in this process in the past few years but it is obvious that it will play a
more important role in the future. In this phase, internal driving forces towards sustainability as a holistic approach
are more or less missing, although there may be some pressure from new environmental groups, requirements
needed for future EU membership and from international agreements. In particular, the goal of some of the CEE
countries to achieve access to the EU in the near future stimulates the agricultural policy makers to organize this
sector in a way that makes it adaptable to CAP. This motivation certainly also affects environmental policies in the
agricultural sector. But it has to be expected that the low use of potentially harmful inputs will actually reduce the
motivation to implement strong environmental regulations.
On the basis of the present environmental situation in agriculture in CEECs, the following must be borne in mind:
1.  Privatization  as  a  key  element  of  agrarian  structural  reform  can  contribute  to  the  ecological  state  of
agriculture on condition that this process is accompanied by an effective agrarian policy and working laws.
The  restitution  of  land  property  rights  and  the  restructuring  of  the  agricultural  sector  do  not  mean  an
immediate change in the attitude of farmers to and their motivation for, the application of ecologically sound
methods  of  production.  It  is  logical  to  assume  that  the  economic  interests  of  the  owner  will  direct  him  to
preserve  soil  fertility,  to  observe  the  ecological,  nature-protective  and  sanitary-hygienic  standards  for  the
production  of  quality  products.  It  is  wrong  to  expect,  however,  that  this  change  in  the  attitude  to  natural

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resources  will  occur  automatically.  Efforts  should  be  taken  by  the  Government  to  lay  the  foundations  of
sustainable  farming  and  practical  working  ecological  legislation  through  the  development  of  suitable
mechanisms.

2.  Besides  preventive  measures,  a  more  effective  relationship  between  the  damages  caused  and  the
sanctions  imposed  should  be  found  for  the  realization  of  more  effective  pollution  control.  In  terms  of  the
conservation  of  biological  diversity,  the  country  is  conducting  active  research  activities  for  the  better
conservation and study of rare species in country‘s flora and fauna, as well as those which are threatened
with extinction.

3.  Environmental  policy  should  be  built  into  the  institutional,  structural  and  infrastructural  changes.  In  this

respect, the role of ecological legislation is of great importance.

4.  The  laws  on  environmental  protection  should  be  supported  by  the  whole  of  society.  Without  this  support,

their functioning will not be effective.

The  capacities  of  sustainable  and  ecologically  sound  development  can  be  increased  by  extending  research,
training, education and extension activities. In perspective, the training of executive staffs, producers and future
farmers  should  put  into  practice  the  achievements  of  ecological  science  for  the  realization  of  sustainable
development is the only alternative.
To  ensure  the  effective  transition  to  market-oriented  agriculture,  and  also  improved  income  opportunities  and
food security for the rural population, farming systems in CEECs will need to become more intensive but at the
same time sustainable and diversified. These farming systems have to provide that:
·  

adverse impacts on the natural resource base of agriculture and associated ecosystems are minimized or
ameliorated;
residues resulting from the use of chemicals in agriculture are minimized.

·  
The  imperative  need  for  improved  farming  efficiency  in  CEECs,  combined  with  the  requirement  for  the
environmental neutrality of production systems, as well as household and country level food security, will most
likely lead to the adoption and development of such farming systems which are at the same time intensive and
sustainable. The process of the sustainable intensification of farming systems in CEECs is heavily dependent on
the availability of multi-disciplinary expertise.
One could ask what might be done in order to make farming systems sustainable. Lockeretz has claimed that
sustainable agriculture is based on the following general concepts (Lockeretz, 1988):
·  

Diversity  of  crop  species  to  enhance  the  farm’s  biological  and  economic  stability  that  is  created,  for
example, through rotation, relay cropping and intercropping;
Selection of crop varieties and livestock that are well suited to the farm’s soil and climate and that resist
pest and disease;
Preference for farm-generated resources over purchased materials, as well as for locally available off-
farm inputs (when required) over those from remote regions;
Tightening  of  nutrient  cycles  to  minimize  loss  of  nutrients  off  the  farm,  realized,  for  example,  by
composting livestock manure or by rotating, using legumes to fix nitrogen;
Livestock  housed  and  grazed  at  low  density,  with  a  preference  for  high-roughage  rations  over
concentrated  feeds  for  ruminants,  and  herd-size  scaled  to  the  farm's  ability  to  produce  feeds  and  use
livestock manure efficiently;
Enhancement of the soil's ability to take up applied nutrients for later release as needed by the crop, in
contrast to direct uptake by the crop at the time of application;

·  

·  

·  

·  

·  

·   Maintenance  of  the  protective  cover  on  the  soil  throughout  the  year,  through  tillage  that  leaves  crop

·  

·  

·  

residues on the surface, and through cover crops and living mulches;
Rotations that include deep-rooted crops to tap nutrient reserves in lower strata and that control weeds
by alternating between cool season and warm season crops;
Use of soluble inorganic fertilizers, if at all, only at a level that the crop can use efficiently, and use of
these materials only in case livestock manure and legumes cannot cover nutrient deficits;
Enhancement  of  conditions  for  controlling  or  suppressing  weeds,  insect  pests,  and  diseases;  if
synthetic  insecticides  and  herbicides  are  used  at  all,  they  should  be  used  only  as  a  last  resort  and  only
when there is a clear threat to the crop.

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The practices above certainly have many components that are beneficial from an environmental point of view. On
a more general level, one could claim that sustainable farming typically involves a number of good agricultural
practices.  It  can  be  safely  assumed  that  good  agricultural  practices,  in  the  long  run,  will  offer  a  way  to  create
sustainable farming systems in the CEECs.
By  using  good  agricultural  practices,  negative  environmental  impacts  of  farming  systems  can  be  reduced,
excessive amounts of leaching can be avoided, ammonia volatilization can be reduced and pesticide losses can
be minimized.
What  are  good  agricultural  practices  from  a  sustainability  point  of  view  depends  partly  on  local  conditions.  In
order to exemplify such practices, the following list (applicable to northern Europe) compiled by Seppänen and
Korkman et al. is presented (Seppänen, 1999; Korkman et al., 1993):
·  

Cultivation planning and monitoring. An annual, appropriate cultivation plan for the whole farm is made.
Measures carried out on each parcel are recorded, including amounts of nutrient inputs. Results from soil
analysis are included in the plan.
Fertilizer  and  pesticide  use.  The  appropriate  amounts  of  nitrogen,  phosphorus  and  pesticides  vary
greatly depending on the productive potential of soil.
Headland and filter strips. Buffers zones, filter strips and headlines are left next to waterways to prevent
soil, nutrients and other substances from leaching out of arable fields into surface water.
Plant  cover  outside  the  growing  season.  Fields  are  covered  with  plants  in  the  wintertime  to  reduce
nutrient leakage.
Reduced tillage. If no plant cover is used, autumn ploughing can be replaced by direct sowing, stubble
cultivation or spring ploughing.
Stocking densities. It is somewhat difficult to generalize what should be considered maximum stocking
densities, depending on the agroecological system in question (for examples, see Baldock and Beaufoy
1993,  p.  30-31).  Pork  and  poultry  production  tends  to  be  intensive  and  less  sustainable  than  cattle  or
sheep  production.  However,  good  agricultural  practices  require  not  using  livestock  densities  above  a
certain ceiling. In Finland this ceiling is defined as 1.5 LU/ha (Pirttijärvi et al., 1995).
Storage and application of manure.  Manure  must  be  appropriately  stored  and  ploughed  into  the  field
when spread and alternatively injected or placed under the soil in order to avoid ammonia losses.
Nature and landscape management. Biodiversity as well as diversity in the landscape should be taken
care of, and possible valuable habitats should be preserved or restored.

·  

·  

·  

·  

·  

·  

·  

This list is, of course, not exclusive. More detailed information on good agricultural practices has been published,
for instance, by the Welsh Office of the British Ministry of Agriculture, Fisheries and Food (MAFF 1991, MAFF
1992, MAFF 1993). Formulating lists for good agricultural practices on a national level is likely to be necessary in
the CEECs.
The  introduction  of  so-called  good  agricultural  practices  on  farm  in  CEECs  is  probably  one  way  to  reduce  the
threat posed to soils and waterways. For example in Poland agriculture has been private to a large extent, the
experiences from West European countries could probably be used extensively for formulating policies aiming at
the introduction of such management systems.
Adopting  codes  of  good  agricultural  practices  seem  to  be  one  necessary  advance  for  virtually  all  the  CEECs
towards  establishing  sustainable  farming  systems  in  the  long  run.  This  adoption  is  the  best  method  to  reduce
environmental problems caused by agriculture. In addition, profitability and stability can be accomplished through
good  agricultural  practices.  The  CEECs,  however,  may  have  quite  different  possibilities  and  prerequisites  for
adopting such practices. In all cases it is likely that the completion of the privatization process and the building up
of  infrastructure,  extension  systems  and  farmers’  credit  possibilities  will  be  necessary  before  those  good
agricultural practices can be adopted. Equitability and the social sustainability dimension need to be solved at the
policy level.
Sustainable farming systems in the CEECs are connected with preserving the resource base and environmental
conservation,  as  well  with  the  maintenance  of  productivity  and  the  economic  viability  of  the  farming  system.
Ecological and economic factors go hand in hand to establish a sustainable agriculture.
The  reorientation  of  agricultural  policies  will  create  the  need  for  “re-instrumentation”.  Traditional  agricultural
policies, heavily biased towards price support, are going to be phased out. Direct payments will have to become

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o 

better  targeted,  more  cost-efficient  and  de-coupled  from  farm  production  or  factors  of  production.  If  these
conditions are fulfilled, they could provide an important tool to respond to the multifunctional role of agriculture, in
particular in relation to the environment and sustainable agricultural and rural development. Finally, there is also
the need for better assessment of policy developments that have taken place in CEECs, of those under way, and
policy alternatives in the future. The growing interdependencies of developments in the agri-food sector means
that more emphasis will have to be placed on the optimal policy mix. This includes the need to analyse impacts on
farm incomes, structural adjustment, environmental quality, rural development, trade and the functioning of the
agricultural world markets.
Water quality management needs to concern:
o  water quality monitoring, including the development of reduced cost methods of assessment and standards
for chemical, physical and biological loads, and the aspects relative to pollution from agro-chemicals;
economic and effective mechanisms for the disposal or reuse of drainage water, and agricultural wastes,
particularly in arid and semiarid lands;
appropriate methods for waste water treatment for agriculture reuse;
better management practices to minimize water quality degradation in irrigated agriculture.

o 
o 
High  priority  should  be  given  to  those  technical  aspects  oriented  toward  modernizing  irrigation  and  drainage
systems; to development of locally adapted water-efficient on-farm irrigation technologies; to integrated irrigation
and fertilizer management including fertigation, chemigation and irrigation scheduling; enhanced methods for field
evaluation  of  on-farm  and  off-farm  system  performances  and  systems;  to  monitoring,  including  water  supply,
water quality, salinization; and to environmental, economic and social impacts. Innovative issues are required to
make  water  management  effective.  They  concern  the  mechanisms  to  improve  the  user’s  participation  and  to
strengthen  the  institutions  involved  in  water  resources  planning  and  management,  as  well  as  the  laws  and
regulations  relative  to  water  policies.  For  example  in  Poland  the  farm-level  N-balances  exemplify  the  need  to
develop a fertilization-advice service, which could help increase the benefits of farmers and protect water quality.
In regard to biodiversity protection Ángyán et al., in concordance with specialists at the Ministry of Agriculture and
Regional Development of Hungary, consider the most important endeavour to be the development of a system
designed to consolidate the requirements for the protection of nature and those of land utilization for agriculture.
He  suggests  that  the  categories  to  be  applied  in  such  a  system  should  be  defined  in  line  with  the  following
(Ángyán et al., 1998):
1.  Core areas for the protection of nature.
2.  Nature protection buffer zones and areas for the protection of water sources.
3.  Transitional zones.
4.  Agricultural zones.
5.  Areas withdrawn from cultivation.
In order to achieve a balance between development and ecological and landscape protection in Estonia specific
measures should be taken in order to:
o 
o 
In Slovakia taking into account agriculture-related problems, the following improvements seem to be desirable in
order to make farming systems more sustainable:
o 

to maintain traditional landscapes and natural values
to protect resources (soil, water protection, energy conservation, conservation of biodiversity)

"ecologization":  prevention  and/or  minimization  of  environmental  pollution  through  overall  management  in
the use of agricultural inputs;
production of more "nature" and greater (bio)diversity on farms;
ensure stable and fair income for farmers allowing them to maintain their dignity and function in society;
a higher degree of ethical and political acceptability; and
better overall farm management and improved yields.

o 
o 
o 
o 
In Slovakia agricultural research should prepare an experience/knowledge base for the consistent transformation
(restructuring) of agricultural production in respect to specific land and ecological conditions, implementation (by
the  EU,  for  example)  of  measures  on  applying  special  farming  systems  in  sensitive  region  (including  financial
reimbursement for losses), and also steps for the evaluation of the effects of agricultural production. Research is

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also  obliged  to  prepare  other  recommendations  for  lowering  inputs  and  increasing  the  effectiveness  of
agricultural production.

4.2  Long-term measures

In regard to long-term measures for regional planning in rural areas there are four elements to be considered in
factual policy. These concern the basic needs for:
·  

a demarcation of less-favoured areas (LFAs) and statistical units (NUTS) in most CEECs and NIS as yet
has been missing. In the Czech Republic, Slovakia, Slovenia and Hungary there are acknowledged types of
agricultural regions, or a typology of political districts, owing to their level of economic development, to be
used for further applications; but the delimitation of NUTS seems to be an especially heavy challenge for
organizations involved;
a consistent collection of information and data is certainly available, at least in parts; there are reported good
examples  of  institutions  for  regional  statistics,  decentralized  state  offices  or  official  collections  of  data  for
planning purposes in infrastructure (e.g. from Bulgaria);
the  importance  of  rural  communities  is  (or  should  be)  ranked  highly  and  ought  to  be  used  politically;  it  is
quite significant that in many country reports there is very little reference to questions of communal policy
and especially to the status of political autonomy of communities and their role within the social principle of
subsidiarity.  Communities  and  communal  unions,  in  any  case,  are  the  starting  point  for  development
planning in a "vertical" organization (as in so-called objective regions 1, 2 or 5b).
Adoption of the Community acquis (notably in the veterinary and plant-health fields and as regards external
border controls in particular);
Institution-building  is  important  as  well,  and  the  work  to  adopt  the  acquis  helps  in  this  respect.  The
requirements by the EU on information systems and grading standards demand the introduction of proper
institutions.
Implementation of the structural and rural development policy;
Development of capacity to implement and apply the Common Agricultural Policy (CAP), notably in terms of
administrative structures and the basic management mechanisms for supervising the agricultural markets
and for implementing the structural and rural development measures;
Adoption and implementation of veterinary and plant-health rules;
A considerable effort should be made in order to bring food-processing plants (such as slaughterhouses) up
to  EU  standards.    Classification  and  registration  schemes  still  have  to  be  implemented.    Testing  and
diagnostic facilities have to be upgraded and validated;
Restructuring of the agri-food industry.
Structural adjustment must be performed in the downstream sector to increase the efficiency of marketing
channels  and  to  improve  price  and  quality  information.    Private  food  processing  and  marketing  have
progressed,  although  a  high  degree  of  monopolistic  and  monopsonistic  power  still  remains  in  the
downstream sector. Moreover, efforts still have to be made to meet consumer demands in terms of quality.
Land restoration process;
Creation of an operational property market;
Implementation of structural and rural development measures;
Setting-up and consolidating property structures and developing a rural policy;
Creating alternative employment in rural areas.
Strong  investment  in  rural  infrastructure.    Roads,  transport,  telecommunications  and  water  provisions  as
well as waste disposal and treatment need support.

·  

·  

·  

·  

·  
·  

·  
·  

·  
·  

·  
·  
·  
·  
·  
·  

A  political  concession  to  agriculture  –  including  the  question  "to  which  agriculture"  –  is  suggested.  It  can  be
imagined  that  articles  will  be  introduced  into  perspectives  of  factual  policy  and  even  in  national  constitutions.
Without powerful "lobbying" on such a basis it might be much more difficult to come to a factual transformation of
new political ideas for agriculture with positive perspectives for the future, although at present almost nobody is
ready to call for a well-founded priority of domestic food supply.
Technological  changes  along  with  the  globalization  of  markets  are  transforming  industrial  countries  into
knowledge-driven  economies.  This  shift  away  from  resource-based  toward  knowledge-based  economies  is
reflected  in  the  promotion  of  contemporary  approaches  to  farming  systems  development  in  industrialized

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countries too. The ability, skills and knowledge of the people who farm the land has been recognized as a major
factor of efficiency. It is not enough that farmers have the relevant information; the knowledge of how to judge
what is in their best interests. Therefore, to achieve adequate levels of agricultural productivity, quality, efficiency
and profitability, farming systems in Central and Eastern European countries would need not only to be resource
but knowledge-intensive as well.
The question arises whether the process of transformation in Central and Eastern European countries aims at
this new paradigm for society and the economy. This question leads to a second hypothesis: the guiding principle
for the transformation of socialist economic systems is derived from the experience that market-oriented systems
have  been  more  competitive  in  the  past  than  centrally-planned  economies.  Accordingly,  if  we  follow  these
interpretations without any second thoughts, the traditional principles of market-oriented economies are used as
guidelines for transformation in Central and Eastern Europe. This way of reasoning –which has been confirmed
by many studies in the area of transformation analysis– suffers from the fact that it is oriented towards the  past,
although  it  should  be  oriented  to  the  future.  Remodelling  societies  and  economies  represents  a  long-lasting
process which – as a further consequence - should not be oriented towards the principle of growth but follow the
paradigm  of  sustainability.  Most  economists  would  agree  that  well-established  market  economies  have  to
transform in the sense of sustainable development. There is no reason why the same demand should not equally
be valid for the transformation of former centrally-planned economies. In this respect, a second transformation
trap  for  the  development  towards  sustainability  can  be  revealed:  the  prevailing  concepts  of  transformation
towards market economies follow empirical evidence and are therefore based on a way of reasoning that refers
to the past. Since priority is given to the experience of market economies, the danger arises that transformation
towards sustainability will be neglected for a long time.
In regard to the agro-environmental situation, the long-term project in most of the transformation countries is that
agriculture  will  be  restructured,  agricultural  and  some  environmental  policies  will  be  institutionalized,  the  input-
output ratio will be stabilized and agricultural production will be significantly boosted. This will be achieved by a
high and efficient level of input use leading again to increased environmental pollution.
In other words, rules for sustainability and corresponding environmental policies are seen to be unnecessary in
the  short  run,  although  they  will  be  urgently  needed  in  the  long  run.  Does  the  environment  find  itself  in  a
"transformation trap"? After the period of institutional innovation has passed, it may be very difficult to change the
rules again in favour of the environment.
This  hypothesis  seems  to  be  even  more  realistic  if  we  look  at  the  next  phase  of  development.  When  the
agricultural sector will have been stabilized in the years to come, it might happen that the use of energy, fertilizer
and  pesticides  will  have  increased  at  a  higher  rate  than  can  be  observed  now,  without  having  adequate
instruments to limit it and resulting in new damage to natural resources. For this reason, a crucial element of the
transition process is the redefining of property rights with regard to the use of natural resources. While in western
industrialized countries property rights have been defined over decades and while it seems politically difficult to
change  some  of  these  rights  to  obtain  fewer  environmental  changes,  such  rights  could  –  theoretically  –  be
defined in a more "environmentally sound" way in the transition countries, e.g. prohibiting any contamination of
natural resources harmful to future generations. However, redefined property rights alone will not guarantee less
contamination unless institutionalized mechanisms for controlling implementation are established.
The  hypothesis  that  there  is  a  transformation  trap  for  the  environment  in  the  transformation  process  may  be
helpful in identifying a major problem. However, a second serious problem can be identified if we consider the fact
that, while the issues of environmental pollution and resource degradation have increased the consciousness of
many people regarding the question of sustainability, but many of them have neglected the fact that questions of
sustainable development are always associated with economic, social and political requirements. If sustainability
is only demanded for the area of natural resources and environmental protection, this may lead to non-feasible
concepts because options for achieveing ecological progress may be non-feasible from an economic, social or
political point of view or may even be destructive in these areas. Moreover, this implies that ecological objectives
cannot be achieved by such a strategy.

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Löfgren S., Gustafson, A., Steineck, S. & Ståhlnacke, P. 1999. Agricultural development and nutrient flows in

the Baltic States and Sweden after 1988. Ambio, 28(4): p. 320-327.
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J.N. Lekakis & G. P. Zanias, eds. Agriculture, trade, and the environment, p. 223-239.

Rzad,  Polski.  1997.  II  Raport  rzadowy  dla  Konferencji  Stron  Ramowej  Konwencji  Narodow  Zjednoczonych  w

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Sapek, A. 1996. Nitrogen balance on national, regional and farm level in Poland. Progress in Nitrogen Cycling
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1994: p. 371-375

Skutlaberg, A. 1996. Important factors for development of ecological and sustainable agriculture in Norway and
the  other  Nordic  countries,  NJC,  Environment  and  Sustainable  Agriculture,  Proceedings,  II  international
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Westerlund, K. & Loolaid, Ü. 1996, Foreword,  NJC, Environment and Sustainable Agriculture, Proceedings, II
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OFFICIAL STUDIES AND PROGRAMMES

SOURCE: DN: IP/00/1009     Date: 2000-09-14

SAPARD Programme for Poland in 2000-06
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Total area of the country:  312,680 km², of which 59 % is agricultural land.
Population: 38.7 million, of which 38.1 % are living in rural areas,
Share of agriculture in GDP: 4.9 % (1998)
Share of agriculture in total employment: 28 %
Share of agri-food processing in GDP: 6 % (1997)
Agri-food sector: In 1998 employment in the food-processing sector totalled 3.5% of the total employment in
the economy.

Total area of the country:  93,030 km², of which 67% is agricultural land.
Population: 10,044,000, of which 73.5 % are living in rural areas
Share of agriculture in GDP: 5.0 % in 1998 (12.5% in 1990)
Share of agriculture in total employment: 7.5 % in 1998 (17.5% in 1990)
Share of agri-food products in GDP: 4 %
Agri-food sector: Food industry in Hungary employs about 3-4% of the total labour force.

Total area of the country : 110,910 km², of which 81.4% (90,371 km²) is agricultural land.
Population: 8,230,000, of which 43.6% (3,612,794) live in rural areas
Share of agriculture in GDP (including forestry and fisheries): 18.7%
Share of agriculture (including forestry and fisheries) in total employment: 25.6% in 1998 (17.5% in 1990)
Share of agri-food products in GDP: 4%
Agri-food sector: In 1999 the sector accounted for 3.8% of GDP, 4% of employment and 10.6% of exports.

SAPARD Programme for Hungary in 2000-06
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National agricultural and rural development plan for Bulgaria in 2000-06
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Agriculture  and  Rural  Development  Plan  (SAPARD  Plan)  for  the  Czech  Republic  in  2000-06  (Council
Regulation (EC) No 1268/1999)
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Rural  Development  Plan  for  European  Community  Support  for  Pre-accession  Measures  in  Agriculture
and Rural Development in Latvia (SAPARD) in 2000-06
Total area of the country:  64 582 km², of which 39 % is agricultural land
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Slovenia: Rural Development Plan for 2000-06 (Council Regulation (EC) No 1268/1999)
Key facts and figures
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Total area of the country:  20,256 km², of which about 43% (data 1996) is agricultural land.
Population: 1,982,600, of which 57.3% are living in rural areas.
Share of agriculture in GDP: 4.6 % (decreasing)
Share of agriculture in total employment: 6.2 % (decreasing)
Share of agri-food products in GDP: 3.5-4.5 %
Agri-food sector: a total of 18,700 employees in food industry

Population: 2,46 million inhabitants, of which 31% living in rural areas.
Share of agriculture in GDP: 7.6% in 1997 (21.3% in 1991)
Share of agriculture in total employment: 16.6 % (1998).
Share of agri-food processing in GDP: 8-9% over past three years
Agri-food sector: In 1998 23% of the population employed in industry were in the food processing sector.

Total area of the country:  78.866 km², of which 54,3 % is agricultural land and 33,4 % is afforested land.
Population: 10.299.125 inhabitants, of which 75,9 % are living in rural regions
Share of agriculture in GDP: 1,8 % (1998)
Share of agriculture in total employment: 2 %

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EP/IV/A/STOA/2000/10/01

ANNEX

“PROSPECTS FOR AGRICULTURAL MARKETS 2001-2008”

Chapter II

PROSPECTS FOR AGRICULTURAL MARKETS IN THE CANDIDATE COUNTRIES
FROM CENTRAL AND EASTERN EUROPE

http://www.europa.eu.int/comm/agriculture/publi/caprep/prospects2001/index_en.htm

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