The Hungarian School Milk Scheme

Csaba, VITÁRIUSDepartment of Agricultural Markets

Ministry of Agriculture Gödöllő, 29th October 2015

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Table of contents

I. Regulatory background

II. Main characteristics of the Hungarian scheme

III. Operation in practice

IV. The scheme in numbers

V. Experiences, future plans

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Regulatory backgroundEU legislation:1308/2013/EU – basic act,657/2008/EC – detailed rules of implementation.

National legislation:new national regulation each year,Reg. 19./2015 (IV. 24.) of MA.

Communications:announcements about application forms and general conditions of the submission.

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Table of contents

I. Regulatory background

II. Main characteristics of the Hungarian scheme

III. Operation in practice

IV. The scheme in numbers

V. Experiences, future plans

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Main characteristics of the scheme• Global aims:– encourage consumption of healthy dairy products containing important

vitamins and minerals,– nutritional & educational character (provide quality products, to contribute to

a healthy way of living + nutritional education for a better knowledge on products).

• Voluntary: educational establishments may decide to join and apply for aid.• Beneficiaries: children in nursery schools, primary and secondary education

and children with special educational needs.• Daily allocation of products: max. 2,5 dl of liquid milk or milk products in

liquid milk equivalent (4 days/week).• Budgetary resources: union aid + national allocation.• Rate of support: depending on the level of development and the age of the

beneficiaries, up to 100% of the gross purchase price.

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Level of union aid EU budget is not limited (future plans).

Product category Union aid(EUR/100 kg)

Category I. (heat-treated milk, flavoured and non-flavoured, yoghurt, kephire)

18,15

Category II. (yoghurt with fruits, flavoured and non-flavoured)

16,34

Category III. (fresh and processed cheese) 54,45Category IV. (Grana Padano, Parmigiano Reggiano) 163,14Category V. (cheeses out of Cat. III. and IV.) 138,85

Source: 657/2008/EC

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Level of national aid The basis of the national top-up is the contractual gross purchase price, but a maximum is fixed in the regulation.

Product category Max. purchasing priceCat. I. (whole milk, semi-skimmed milk, flavoured and non-flavoured)

32,5 HUF/dl

Cat. I. (skimmed milk, flavoured and non-flavoured) 13,2 HUF/dlCat. I. (non-flavoured yoghurt and kephire) 395 HUF/kgCat. I. (flavoured yoghurt) 460 HUF/kgCat. II. (yoghurt with fruits) 485 HUF/kgCat. III. (fresh and processed cheese) 1 400 HUF/kg

Source: 19/2015. (IV. 24.) FM Regulation

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Table of contents

I. Regulatory background

II. Main characteristics of the Hungarian scheme

III. Operation in practice

IV. The scheme in numbers

V. Experiences, future plans

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Operation in practice I.• Actors of the process:

Educational establishments, supervising bodies (local governments, churches, foundations, Klebelsberg Center for Institutional Supervision (KIK)),

Suppliers (processors),

Beneficiaries (children).

Paying Agency (Agricultural and Rural Development Agency - ARDA)

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Operation in practice II.1) Regulation enters into force; announcements and application forms become

available on ARDA webpage.

2) Registration of the applicant at ARDA.

3) Delivery contract between the supervising body and the supplier (for 6 or 12 months).

4) Fulfilment (=delivery to beneficiaries).

5) Payment application (after 2 months of delivery).

6) Administrative control performed by ARDA.

7) Payment of aid (within 30 working days).

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Table of contents

I. Regulatory background

II. Main characteristics of the Hungarian scheme

III. Operation in practice

IV. The scheme in numbers

V. Experiences, future plans

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The scheme in numbers I.

2009. 2010. 2011. 2012. 2013. 2014. 2015. 2016.0

100000

200000

300000

400000

500000

600000

527000

Number of children participating in the scheme

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The scheme in numbers II.

2012 2013 2014 2015* -

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000

3,000,000,000

3,500,000,000

4,000,000,000

4,500,000,000

5,000,000,000

School Milk Scheme budget (2012-2015, HUF)

National top-upUnion aid

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Table of contents

I. Regulatory background

II. Main characteristics of the Hungarian scheme

III. Operation in practice

IV. The scheme in numbers

V. Experiences, future plans

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Experiences, future plans

• The school schemes (milk and milk products, fruit&vegetables) are real success stories in Hungary, number of participants and the budget is increasing year-by-year.

• The scheme plays an important role in building healthy eating habits, and provides less favourable children with milk & milk products 4 times a week.

• Flavoured and processed products are more attractive, the main product is liquid milk.

• Main group of beneficiaries are pupils of primary schools.• The scheme has minor market effects (around 20 million kg of milk is

used a year).• Future plan is to involve the maximum number of children.

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More information about the programme

European Commission:http://ec.europa.eu/agriculture/milk/school-milk-scheme/index_en.htm

Hungarian Government:www.iskolatej.kormany.hu

Paying Agency (ARDA):http://mvh.gov.hu/portal/MVHPortal/default/mainmenu/tamogatasok?tamogatas_id=1055&mutat=T%C3%A1mogat%C3%A1s+r%C3%A9szletei

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Contacts

Ministry of Agriculture of HungaryDepartment of Agricultural Markets

Telephone: +361-795-3844

E-mail: agrarpiaci@fm.gov.hu;lorand.riedel@fm.gov.hu;csaba.vitarius@fm.gov.hu;

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Thank you for your attention!