Bulgaria has struggled with accession, after failing to gain entry to the first round, due to take place on May 1st. However, on a visit to the country this week EU Commissioner for Agriculture, Rural Development and Fisheries Franz Fischler told a press conference in Sofia that the country was making significant progress in its ambitions to gain entry for 2007.
Fischler said that Bulgaria was on track to sign an accession treaty in 2005 with the aim of Bulgaria joining the European Union in 2007. However, despite the optimistic tone, Fischler did hint at a certain amount of caution, stressing the fact that there was still plenty of work to be done to bring the industry up to the required standard.
"Closing the negotiations is obviously only one part of the exercise. The other part is about taking over the 'acquis' and establishing the necessary administrative capacity to apply it in practice," said Fischler. "This is a real challenge, in particular in the agricultural sector with its complex rules and administrative requirements, such as the creation of a functioning Control System. There are quite a number of mechanisms that need to be in place upon accession. As stated in the 2003 Regular Report, there is still a lot to do."
Fischler also emphasised the move towards preserving bilateral trade agreements between Bulgaria and the ten accession states, stating that the Commission was currently negotiating agreements which would improve the country's ability to trade in farm products once those countries have become a part of the EU.
The effectiveness of SAPARD funding also drew comment, with Fischler emhasising its particular effectiveness in Bulgaria, which was actually the first country to fulfill all the necessary requirements for operating the system. SAPARD has become a widely accepted financial instrument in Bulgaria, which Fischler claims has contributed to reshaping Bulgarian agriculture and regenerating its food processing sector.
To help Bulgaria comply with EU regulations on food safety and Common Agricultural Policy it has been granted €617 million, a figure which, as a percentage of the country's GDP, is said to be higher than any of the funding given to other EU countries.
However, despite all the good news about progress, Fischler also chose to point out areas in the agro-food sector where Bulgaria is still weak. "Despite the long agricultural tradition of Bulgaria and the indisputable know-how of all the actors in the food chain, the Bulgarian agricultural sector needs to be more competitive. The adverse factors are well known : fragmentation of land, the extent of subsistence economy, outdated producing structures, lack of capital, low productivity are major cause for concern."
Currently there are only a handful of food processors who have actually received licensing to export their products to the EU, including 20 dairy processors, four slaughter houses and three meat packers. Obviously this number is just a fraction of the country's overall production capacity and represents just how much work remains to be done. Fischler emphasised that in order for food businesses to meet the required standards all requirements along the food chain would have to met in order to raise quality.
Many company's have not met the required standards and to date some 120 meat packers and dairies have had to be closed. With accession now becoming closer and closer to becoming a reality, many more such businesses look set for closure or else will be subject to inevitable takeover bids from larger companies.