SLOVAKIA: ESTIMATES OF SUPPORT TO AGRICULTURE

Contact person: Václav Vojtech

Email: vaclav.vojtech@oecd.org

Tel :

(33-1) 45 24 92 66

Fax :

(33-1) 44 30 61 02

DEFINITIONS AND SOURCES

Country Total Support Estimate (TSE) and derived indicators in Table 1 cover all agricultural production, i.e. all agricultural commodities produced in the country. Definitions of basic data sets refer to the specific name of the programmes with specific sources indicated in square brackets. For the Producer Support Estimates (PSE) and Consumer Support Estimates (CSE), the description of policy measures indicates the commodities covered by the measures, as well as the method of allocation of the corresponding transfers among commodities. "MPS commodities", which vary across countries, are those for which market price support is explicitly calculated in Table 2.

Market Price Support (MPS) and Consumer Support Estimates (CSE) by commodity in Table 2 are calculated for the following commodities: wheat, maize, barley, rye, oats, rapeseed, sunflower, sugar, milk, beef and veal, pig meat, poultry meat, and eggs. Definitions are provided only for basic data sets from which all the other data sets in this table are derived, following the formula indicated in each commodity table. Specific sources are indicated in square brackets.

Producer Support Estimates (PSE) by commodity in Table 3 are calculated only for commodities produced in the country within a common set of commodities (wheat, maize, barley, oats, rice, sorghum, soybeans, sunflower, rapeseed, sugar, milk, beef and veal, pig meat, poultry meat, sheep meat, wool, and eggs); provided that the value of production of that commodity exceeds 1% of the total value of production in the country concerned. All data sets in the calculation of PSE by commodity come from Tables 1 and 2 where definitions are included.

Definitions of the indicators, criteria of classification of programmes included, and methods of calculation can be seen in OECD, Methodology for the measurement of support and use in policy evaluation [http://www.oecd.org/agr/policy].

Table 2. Market Price Support and Consumer Support Estimate by commodity

Definitions:

I. Level of production

Cereals, oilseeds: Total production during the crop year [1].

Sugar / sugar beet: Total production of sugar beet during the crop year [1], expressed in sugar equivalent using the sugar beet/sugar ratio [5].

Milk: Total milk production during the calendar year [1].

Beef and veal, pigmeat, poultry: Total production in liveweight during the calendar year [1], calculated into carcass weight using liveweight/carcass ratios (beef and Veal: 0.525; pigmeat: 0.69; poultry: 0.735).

Eggs: Total production of eggs in shell during the calendar year in millions of pieces [1], converted into tonnes using the ratio 17.8 eggs per kilogram.

II. Producer price

Wheat, maize, rye and oats: Weighted average of procurement and free market prices, at farm gate [1], [2].

Barley: Weighted average of procurement and free market prices, at farm gate for feed and malting barley [1], [2].

Rapeseed, sunflower, sugar beet: Average prices of deliveries to processors (oil and sugar mills) [1].

Milk: Weighted average of procurement and free market prices for milk deliveries [1], [2]. Production consumed on farm is valued at procurement price in 1986-1990 and at market price since 1991 [1].

Beef and veal, pigmeat, poultry: Weighted average of procurement and free market prices at farmgate, carcass weight equivalent [1], [2].

Eggs: Weighted average farm gate price of eggs in shell sold to the market [1].

IV. Level of consumption

Cereals, oilseeds: Total consumption during the crop year, including consumption on farm [1].

Sugar / sugar beet: Total sugar consumption in processing industry and retail [1].

Milk: Total consumption of milk and dairy products expressed as milk equivalents, calendar year [1].

Beef and veal, pigmeat, poultry: Total consumption, carcass weight, calendar year [1].

Eggs: Total consumption of eggs in million pieces, calendar year [1], converted in tonnes by using the coefficient 1 kg = 17.8 eggs.

VII. Reference prices

Common wheat: EC export price of standard quality wheat (FCW 2) to specified zones, fob Rouen, calendar year [6], minus handling and trading margin [5].

Maize: EU import price of USA Yellow Corn No. 3, c.i.f. Rotterdam, calendar year, [6], minus handling and trading margin [5].

Barley: EU export price, fob Hamburg, calendar year [6], minus handling and trading margin [5].

Oats: EU import price, c.i.f. Rotterdam and fob Sweden price from 1995 onwards, calendar year [6], minus handling and trading margin [5].

Rapeseed: EU import price "0", c.i.f., Hambourg, calendar year  [6], minus handling and trading margin [5].

Sunflower: EU import price Sunseed c.i.f. Lower Rhine, calendar year [6], minus handling and trading margin [5].

White sugar(equivalent) : EC export price of white sugar, Paris (contract No 2), fob European ports in bags of 50 kg, (calendar year) [6] dividing by the product of the ratio of white sugar intervention price to basic sugar beet price and the ratio of white sugar production to sugar beet production [5].

Milk: Farm gate price of milk, calendar year, actual fat content (x%) in New Zealand [3], plus transport cost for butter and skimmed milk powder in milk equivalent (56 kg and 82 kg per tonne of milk, respectively) from New Zealand to the United Kingdom (Pnz), adjusted to fat content (y%) in Slovakia [1]; the reference price being (Pnz)*[ (x%)+(y%)] /2*(x%).

Beef and veal: Hungarian export unit value for carcasses [4] minus handling and processing costs [5] to convert to carcass equivalent at farmgate. From 1998, Hungarian export unit value for live cattle for slaughtering converted by coefficient 0.56 in carcass equivalent at farmgate.

Pigmeat: Unit export value in extra-EU trade of meat of swine, fresh, chilled or frozen (Code 0122, SITC Rev3) less exports to Japan, in carcass weight equivalent, calendar year  [6] minus handling and processing costs [5] to convert to carcass equivalent at farmgate.

Poultry meat: Unit export value in extra-EU trade of 65% chickens, frozen (NIMEXE Code 020203 and, since 1989, weighted average of CN 02071190 and CN 02071290 of external trade statistics), in carcass weight equivalent, calendar year  [6] minus handling and processing costs [5] to convert to carcass equivalent at farmgate.

Eggs: Unit export value in extra-EC trade of poultry eggs in shell, fresh or preserved, other than eggs for hatching (NIMEXE Code 040514 and since 1988 NC 04070030 of external trade statistics), calendar year [6] minus handling and processing costs [5].

Definition of handling and processing costs for specific commodities: The handling and processing costs are covering the estimation of the value added from the farm-gate products to the products for which the reference price is used.

Grains and oilseeds: handling and processing costs include the estimation of average transport costs to elevator, average costs for drying and cleaning per tonne, loading and unloading.

Beef & veal, pigmeat: handling and processing costs include the estimation of average transport costs to the slaughterhouse and costs of slaughtering minus the value of the by-product (skin, fat, offals - the definition of the range of by-products to be deducted should be consistent with the definition of the products for which the reference price is reported).

Poultry and eggs: handling and processing costs are estimated as the difference between farmgate price (in cwe for poultry) and the processors (wholesale) price.

Sources:

[1] 1986-1992: Czechoslovak Central Statistical Office (Prague); since 1993: Slovak Statistical Office (Bratislava).

[2] State Fund for Market Regulation (Bratislava).

[3] MAF, New Zealand.

[4] Hungarian Trade Statistics.

[5] Research Institute of Agricultural and Food Economics (VÚEPP) (Bratislava).

[6] See various sources in EU cookbook