Primary producers or processors of agricultural and food products face the competitive struggle not only on the domestic market but also in export activities. We asked Pavol Koncoš, the Agricultural Minister of the Slovak Republic for possible methods and ways out of the current state.

The block of CEFTA countries means to Slovak Republic another significant trade area. Do you manage to place agricultural and food products?

In the area of agriculture and food-making industry agreements are not always consistently performed. For example, Romania, Ukraine or Hungary have multiply raised the customs duty, thereby making our beer in the foregoing countries unsaleable. Certain problems are also perceived in exporting sugar or isoglucose. Within the framework of the CEFTA, there should be lauched negotiations on equal treatment of customs tariffs that would apply to all the countries concerned. The EU has sent out a clear signal that no enlargement thereof will occur over the next five years. Unless we take the given signal into consideration, it will be to joint damage since the CEFTA is interesting from the market point of view. Economic differences in production level and the population's buying power, however, are still substantial and here I view a discrepancy between the interests and actual results of trade negotiations.

What measures are expected to protect our market, e.g. from excessive meat or beer imports?

Meat imports are a sensitive issue because we are not currently self-sefficient in meat finishing. For example, for slaughter pigs we want to revive the breeders' interest through additional measures. In exceeding the purchase of slaughter pigs in the first half of 1999 over the same period a year earlier we contemplate a surcharge of 3 Sk per kilogram of live weight. We will take similar action even in the second half of 1999.

We definitely intend to defend also the interests of domestic brewers. The other way round, Slovak companies with foreign participation (sugar houses, breweries) would welcome to have export subsidies to underpin the competitiveness of their products on foreign markets.

Which products stand the chance of becoming subsidized?

Through the State Market Regulation Fund we anticipate subsidies for exporting milk powder, cheeses, malt, tobacco and other products, according to developments of the market situation. However, a certain condition will be a successful collection of debts from the Market Regulation Regulation.

Will the Act on special crediting benefit the agriculturalists?

Undoubtedly, but of importance are the conditions for putting it into practice. These must be based on sufficient financial resources whose amount we estimate to run at 10 billion Sk. In any case we want to create conditions for special assessing and crediting agricultural primary production, in particular by reason of low profitability and the overly lengthy reproduction process as well as the returnability of investment sunk in animal production. In cooperation with the Finance Ministry of the Slovak Republic we are sifting out resources especially with foreign institutions.

What role will the agricultural sector have to play in enabling foreign trade?

We have undergone a stage of development which was dominated by an opinion that it was most beneficial for the agriculturalists to sell their production single-handedly. Nevertheless, it quickly turned out that this was not the best-fit form. Experiences wielded so far bear out the need for setting up a strong foreign trade organisation to be derived from the producers' goodwill. Goods on foreign markets must be offered systematically, in sufficient numbers and at the right time.

We have not yet managed to unite processors even under respective unions to trade, for example, through a specialised institution. Thus there is a lack of coordination and producents are not able to compete of their own with Western European large-scale producers. They pay for it through lower realization prices for their products. Some initiatives have already emerged, as we have commodities with which we would succeed.

The main tasks for 1999 of the Agriculture Ministry of the Slovak Republic include also a Support programme for young farmers in order to tackle the worsening age and qualification pattern of employees in agriculture. What contents will it have?

The support for young farmers will flow from the Support Fund. We do not want to take special measures on subsidies, but an amendment to the said Fund's guidance is in hand instead. Loans up to 500,000 Sk to purchase animals or technology will be granted therefrom. Anybody presently embarking upon doing business in this field should be esteemed.

Slovak Trade FORUM