EU CAP Reforms Related to Production and Marketing of Hops

M. PAVLOVIC1
1International Hop Growers’ Convention, Secretariat of the IHGC, Malgajeva 18, SI-3000 Celje, Slovenia
1Slovenian Institute for Hop Research and Brewing, Zalskega tabora 2, SI-3310 Zalec, Slovenia

Abstract

PAVLOVIC, M., 2012. EU CAP reforms related to production and marketing of hops. Bulg. J. Agric. Sci., 18: 847-872

Since its inception, the common agricultural policy (CAP) has been under constant internal and external reform pressures. This study belongs to a Health Check of the EU’s latest CAP reform phase, which started in 2007. It analyzes the main effects of the CAP reform in 2003 (decoupled aid, as established by Council Regulation 1782/2003) on the hop industry sector. The research results demonstrate to what extent the CAP measures supporting hops have affected the production decisions of farmers in the EU’s traditional hop production areas. There were three judgment criteria considered and discussed: (i) the extent to which the CAP reform has influenced the profitability of hops (production areas, capital investments); (ii) the extent to which the effects on production vary between, on the one hand, countries adopting fully decoupled support and, on the other, countries adopting partial coupling; and (iii) the extent to which producer groups contributed to stabilizing markets. The results illustrate that there was no evidence that CAP measures introduced after the reform had a significant influence on the production decisions of farmers in the traditional hop production areas from 2004 to 2008.

Key words: CAP reforms, health check, farmers’ decisions, hop industry, IHGC
Abbreviations: CAP common agricultural policy; CNDPs complementary national direct payments; HC health check; IHGC international hop growers’ convention; NGO nongovernmental organization; NMS new member states; SAPS single area payment scheme; SPS single farm payment scheme

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