The measure is of key importance for the processing business in the agriculture sector.
However, a detailed analysis shows a number of pitfalls that could 'overturn the boats' of small and medium producers.
One obstacle is the use of Bulgarian raw materials. According to the Green Laws expert, a closer look at the Regulation – Annex №5 indicates that priority is given to food processors who have signed a contract with a Turkish tomato grower, for example, or with an importer of Turkish tomatoes
Another obstacle to the promotion of local production is the requirement farmers to be registered under the Commerce Act or the Cooperatives Act. This automatically restricts farmers, those who are individuals, to apply under the measure.
One possible solution to the problem, in case MAF wants to support small producers' sustainability efforts,could be to make them eligible to apply under the measure and after an application has been approved a registration as a legal entity under the Commerce Act to be made in order to comply with the law.
Thus, farmers will be spared useless efforts and a number of unnecessary administrative burdens. Farmers in Austria who process their own production, for example, are exempt from registration under the Commerce Act.
Full text of the analysis by Magardich Huliyan.
Who pushes small and medium scale farmers in the corner?
Nov. 24, 2015
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