evaluation of national strategies for sustainable...

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1 Evaluation of national strategies for sustainable operational programmes in the fruit and vegetables sector in Denmark Henning Otte Hansen and Ole Bonnichsen Institute of Food and Resource Economics Contents 2. Introduction .................................................................................................................................................. 3 2.1 Purpose of the report............................................................................................................................... 3 3. Methodology................................................................................................................................................. 4 3.1 Evaluation design and methods used ...................................................................................................... 4

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Evaluation of national strategies for sustainable operational programmes in the fruit and

vegetables sector in Denmark

Henning Otte Hansen and Ole Bonnichsen

Institute of Food and Resource Economics

Contents 2. Introduction .................................................................................................................................................. 3

2.1 Purpose of the report...............................................................................................................................3 3. Methodology................................................................................................................................................. 4

3.1 Evaluation design and methods used......................................................................................................4

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3.2 The additional evaluation questions covered (other than the common ones).........................................5 3.3 The sources of secondary data used, techniques used for data collection ..............................................5 3.4 Assessment of the quality and reliability of the data and possible biases ..............................................5 3.5 Problems encountered or limitations of the methodology used..............................................................5

4. Response to the evaluation questions relating to the National Strategy ....................................................... 6 4.1 Evaluation question on promoting the placing on the market of members’ products ............................6 4.2 Evaluation question regarding ensuring that production is adjusted to demand, in terms of

quality and quantity ..............................................................................................................................10 4.3. Evaluation question regarding boosting products’ commercial value.................................................13 4.4 Evaluation question on optimising production costs ............................................................................14 4.5 Evaluation question on promoting concentration of supply .................................................................15 4.6. Evaluation question on stabilising producer prices .............................................................................17 4.7 Evaluation question on improving competitiveness .............................................................................19 4.8 Evaluation question on improving the attractiveness of membership of producer organisations ........20 4.9 Evaluation question on maintaining and protecting the environment ..................................................21 4.10 Supplementary evaluation of research and experimental activities and also, to some extent, training

activities................................................................................................................................................25 5. Conclusions and recommendations .............................................................................................................26

5.1. Conclusions .........................................................................................................................................26 5.1.1 Degree of utilisation of financial resources ................................................................................... 26 5.1.2 Effects and impacts of the operational programmes in relation to the objectives,

targets and overall objectives set out by the National Strategy..................................................... 26 5.1.3 Effectiveness, efficiency and utility of the measures included in the operational programmes

implemented.................................................................................................................................. 27 5.1.4 Overall effectiveness, efficiency and utility of the operational programmes implemented .......... 27 5.1.5 Shortcomings in the definition of objectives, targets or measures eligible for support................. 27

5.2 Recommendations based on evaluation findings, including possible proposals for adaptation of the National Strategy and EU policy ................................................................................................ 28

5.2.1 Recommendations on the system set out for the monitoring and evaluation of the National Strategy ......................................................................................................................................... 28

5.2.2 Recommendations to address shortcomings in the objectives, targets or measures selected under the National Strategy and on needs for defining new instruments ........................ 28

5.2.3 Recommendations on the coherence and complementarity with other EU and national instruments ...................................................................................................................... 30

5.2.4 Recommendations on the design of the future National Strategy ................................................. 30

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2. Introduction Under the market programme for fruit and vegetables (Single CMO Regulation), it is possible to be approved as a producer organisation (PO) and to set up an operational fund with an operational programme whereby the PO can apply for support for investments within the following measures: production planning, improving or maintaining product quality, improvement of sales and communications activities, research and experimental production, training and the environment. For the purpose of the operational programmes, a National Strategy has been drawn up, dealing with the general conditions for the individual measures and the overall objectives of the operational programmes. Investments undertaken in the operational programmes must contribute to and be in line with the National Strategy. The aim of the National Strategy was to support the objectives of the reformed market programme, specifically, to improve the competitiveness of the fruit and vegetable sector, to make it more market-oriented, reduce crisis-related income fluctuations, increase consumption and thus also improve public health and optimise environmental protection. The monitoring and evaluation are aimed at assessing the progress towards achieving the overall objectives of the National Strategy. This is done using indicators for the output situation, the results and, if relevant, the effects. The monitoring results and a mid-term evaluation of the operational programmes to be found in the annual status reports and the final reports submitted by the POs are also used. 2.1 Purpose of the report The evaluation report is aimed at drawing lessons useful in improving the quality of any future national strategies and in particular, at identifying possible shortcomings in the definition of objectives, targets or measures eligible for support, or the need to define new instruments. The specific objectives of the evaluation are to:

• Investigate the degree of utilisation of financial resources • Investigate the efficiency of the operational programmes implemented • Assess the effects and impacts of the operational programmes in relation to the targets and

goals set by the Strategy The results of the evaluation will be used to:

• Improve the quality of the Strategy • Examine whether there is a need for more comprehensive amendments to the Strategy • Identify shortcomings in the definition of objectives, targets or measures eligible for support, or

the need to define new instruments. • Contribute to satisfying the report’s requirements with regard to implementation of the National

Strategy

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3. Methodology 3.1 Evaluation design and methods used This report makes use of indicators. Indicators have been introduced as part of the National Strategy in order to get an overview of the assessment of causal link between actions carried out and final effect. Indicators do not provide a definitive answer as to whether or not an action is effective. However, as the term suggests, they can give an indication. Indicators are quantified data used to assess the scope, relevance and efficiency of the POs’ actions. Data have been received via NaturErhvervstyrelsen [the Danish AgriFish Agency] from GASA Nord, GASA Odense, GASA Kolding, SAF Frugt, LF Frugt and Danske bær. The data were received on an ongoing basis during the period from May to October 2012. There are the following types of indicator:

• Input indicators: Register implementation of an action and measure the investment amount in Euros per type of action.

• Output indicators: Register the scope of the measure. This indicator can be expressed in a number of ways, for example the number of enterprises that have implemented the action, the number of hectares on which the action was implemented, or the number of actions implemented.

• Result indicators: Assess/calculate the result of the actions by quantifying the results. This can, for example, be a reduction in the quantity of pesticides applied per hectare.

• Impact indicators: Assess the overall impact of the action, such as a change in the number of member organic producers or change in the number of agricultural holdings that have implemented nitrate limitation measures, etc.

• Baseline indicators: Assess the situation at the start of the operational programme. For example, the number of member organic producers, or areas where nitrate limitation measures have been implemented, etc.

This five tier approach for assessing the efficiency of an action is a marked improvement on the current situation. Having figures for financial resources, scope and result provides better opportunities for adjusting and assessing an action. For example, an action could have a great result according to the result indicator, i.e. a reduction in the nitrogen input per hectare, but if the output indicator indicates that the action is not particularly widespread, the combined effect is not satisfactory. The final assessment of an action is in the correlation between the five types of indicator. The POs must submit data on the abovementioned indicators to the Member States and use them in their annual reports and in the mid-term evaluation of the operational programme.

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3.2 The additional evaluation questions covered (other than the common ones) As there was a missing evaluation question regarding research and experimental production and training actions, these have been added to Chapter 4. 3.3 The sources of secondary data used, techniques used for data collection A questionnaire was sent to the POs in order to collect secondary data on the efficiency of the National Strategy and the reporting of its effects. See Annex A for the full questionnaire. 3.4 Assessment of the quality and reliability of the data and possible biases The data basis is so uncertain in some areas that no valid conclusions can be drawn. In some instances there are obvious shortcomings or mistakes and in others no data at all. At the same time, as this is a relatively short period of time (up to three years), undertaking analyses and drawing conclusions with regard to the development over time can be uncertain. However, in spite of these uncertainties in the data basis, it is possible to undertake reliable analyses and draw reliable conclusions. 3.5 Problems encountered or limitations of the methodology used It is, furthermore, important to note that there are many actions and many different effects happening at once, which makes it difficult to assess the exact action-effect context. In addition, many of the actions taken are expected to have longer-term effects that cannot be fully measured over a 1 – 3 year time span.

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4. Response to the evaluation questions relating to the National Strategy This chapter provides responses to the Commission’s pre-defined evaluation questions. 4.1 Evaluation question on promoting the placing on the market of members’ products

Objective Evaluation questions 9.1.1 To what extent have the operational programmes implemented under the

National Strategy contributed to promoting the placing on the market of the products of the members of producer organisations? Details with respect to the contribution of: (a) actions aimed at planning of production; (b) actions aimed at improving or maintaining product quality; (c) actions aimed at improving marketing; and (d) other actions.

Promoting the placing on the market of members' products

9.1.2 To what extent have the operational programmes implemented under the National Strategy been efficient with respect to the objective of promoting the placing on the market of the products of the members of producer organisations?

Data basis for evaluation question 9.1.1 2009 2010 2011 Input indicators

a) Purchase of fixed assets 1 19 005 531 10 712 210 11 534 974 b) Other forms of acquisition of fixed assets,

including rental or leasing 2 39 462 0 0

Actions aimed at planning of production

c) Other actions 3 2 518 481 1 763 234 1 837 003 a) Purchase of fixed assets 4 8 137 908 7 497 076 4 785 537 b) Other forms of acquisition of fixed assets,

including rental or leasing 5 0 0 0

Actions aimed at improving or maintaining product quality c) Other actions 6 7 616 702 8 088 688 7 139 433

a) Purchase of fixed assets 7 1 389 477 6 992 601 3 494 709 b) Other forms of acquisition of fixed assets,

including rental or leasing 8 0 0 0

c) Campaign and communications activities (except actions in relation to crisis aversion and crisis management

9 0 0 0

Actions aimed at improving sales

d) Other actions 10 2 008 753 1 600 566 1 301 911 a) Purchase of fixed assets 38 0 0 0 b) Other forms of acquisition of fixed assets,

including rental or leasing 39 0 0 0

Other actions

c) Other actions 40 929 583 1 020 864 642 095

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2009 2010 2011 Output indicators

Number of agricultural holdings participating in the actions

1 35 24 18 a) Purchase of fixed assets

Overall value of investments (National currency) (1)

2 19 005 523 8 302 669 6 474 174

b) Other forms of acquisition of fixed assets, including rental or leasing

Number of agricultural holdings participating in the actions

3 1 0 0

Actions aimed at planning of production

c) Other actions Number of agricultural holdings participating in the actions

4 83 272 241

Number of agricultural holdings participating in the actions

5 23 17 16 a) Purchase of fixed assets

Overall value of investments (National currency) (1)

6 8 137 908 7 497 076 4 785 537

b) Other forms of acquisition of fixed assets, including rental or leasing

Number of agricultural holdings participating in the actions

7 0 0 0

Actions aimed at improving or maintaining product quality

c) Other actions Number of agricultural holdings participating in the actions

8 101 334 282

Number of agricultural holdings participating in the actions

9 1 126 32 a) Purchase of fixed assets

Overall value of investments (National currency) (1)

10 168 507 6 982 602 3 494 709

b) Other forms of acquisition of fixed assets, including rental or leasing

Number of agricultural holdings participating in the actions

11 0 0 0

c) Campaign and communications activities (except actions in relation to crisis aversion and crisis management

Number of actions implemented (2)

12 0 0 0

Actions aimed at improving sales

d) Other actions Number of agricultural holdings participating in the actions

13 51 200 190

Number of agricultural holdings participating in the actions

58 0 0 0 a) Purchase of fixed assets

Overall value of investments (National currency) (1)

59 0 0 0

b) Other forms of acquisition of fixed assets, including rental or leasing

Number of agricultural holdings participating in the actions

60 0 0 0

Other actions

c) Other actions Number of agricultural holdings participating in the actions

61 223 350 129

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Data basis for evaluation question 9.1.2 2009 2010 2011

Result indicators Change in sold production amount (tonnes) (1) 1 13 804 -3 972 5 924 Actions

aimed at planning of production

Actions aimed at improving sales

Change in unit value of the sold production (national currency /kg)

2 6.48 -0.36 -0.36

Other actions

Estimated effect on production costs (national currency/kg)

3 -0.75 0 -0.5

(a) Certified organic production

Change in sold production amounts that comply with the requirements of a specific “quality scheme” (tonnes) (1)

4 267 185 87

(b) Protected geographical indication and protected designation of origin

Change in sold production amounts that comply with the requirements of a specific “quality scheme” (tonnes) (1)

5 0 0 0

Actions aimed at improving or maintaining product quality

(c) Certified integrated production

Change in sold production amounts that comply with the requirements of a specific “quality scheme” (tonnes) (1)

6 6 213 5 332 3 545

(d) Private programmes for certified product quality

Change in sold production amounts that comply with the requirements of a specific “quality scheme” (tonnes) (1)

7 0 0 0

Change in unit value of the sold production (national currency /kg)

8 6.48 -0.36 23.39

Estimated effect on production costs (national currency/kg)

9 -0.75 0 -0.5

Evaluation question 9.1.1: To what extent have the operational programmes implemented under the National Strategy contributed to promoting the placing on the market of the products of the members of producer organisations? - Actions aimed at planning of production: During the period 2009 – 2011, there was considerable activity in terms of the purchase of fixed assets (around DKK 20 million measured from input indicators). This was also been the case with regard to “other actions”, albeit to a lesser extent. Altogether, 673 agricultural holdings participated in actions in relation to the “purchase of fixed assets and “other actions” during the period 2009 – 2011.

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- Actions aimed at improving or maintaining product quality: During the period 2009 – 2011, there was considerable activity in terms of the purchase of fixed assets (around DKK 42 million measured from input indicators). With regard to “other actions”, this totalled around DKK 23 million. Altogether, 773 agricultural holdings participated in actions in relation to the “purchase of fixed assets and “other actions” during the period 2009 – 2011. - Actions aimed at improving marketing: During the period 2009 – 2011, there was activity in terms of the purchase of fixed assets (altogether around DKK 12 million measured from input indicators). With regard to “other actions”, this totalled around DKK 5 million. Altogether, 600 agricultural holdings participated in actions in relation to the “purchase of fixed assets and “other actions” during the period 2009 – 2011. - Other actions During the period 2009 – 2011, there was no activity in terms of the purchase of fixed assets. With regard to “other actions”, there was activity for about DKK 2 million. Altogether, 441 agricultural holdings participated in “other actions” during the period 2009 – 2011. - General points with regard to evaluation question 9.1.1 In all, around DKK 84 million was invested. The rather uncertain data basis makes it difficult to draw a definitive conclusion in relation to the development over the three years, but there seems to be a falling tendency. Evaluation question 9.1.2: To what extent have the operational programmes implemented under the National Strategy been efficient with respect to the objective of promoting the placing on the market of the products of the members of producer organisations? Viewed across the entire period, there has been a positive change of almost 16 000 tonnes in the amount of production sold. There has also been a positive development in the unit value of sold production, as well as an estimated effect on the unit costs, which are estimated to fall during the period. Similarly, there has been a considerable positive effect with regard to sales of certified organic production and certified integrated production. Actions aimed at improving or maintaining product quality have resulted in a considerable increase in unit value of sold production, as well as an estimated effect on the unit costs, which are estimated to fall during the period.

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- General comments with regard to evaluation question 9.1.2 As investments in quality, marketing etc., are normally over a number of years and have longer-term effects, it would not be expected that the result indicators would show all effects. At the same time, is can also be uncertain and difficult to separate the effects of the actions demonstrated from other effects. A final factor is that changes in the organisation of production can affect unit prices – and costs. Taking all these into consideration, it can thus be conclude that there has been considerable activity and effort, resulting in distinct and measureable effects. 4.2 Evaluation question regarding ensuring that production is adjusted to demand, in terms of quality and quantity

Objective Evaluation questions Ensuring that production is adjusted to demand, in terms of quality and quantity

9.2.1 To what extent have the operational programmes implemented under the National Strategy contributed to ensuring that the production of the recognised producer organisations is adjusted to demand, in terms of quality and quantity? Details with respect to the contribution of: (a) actions aimed at planning of production; (b) actions aimed at improving or maintaining product quality; (c) actions aimed at improving marketing; and (d) other actions.

9.2.2 To what extent have the operational programmes implemented under the National Strategy been efficient with respect to the objective of ensuring that the production of the recognised producer organisations is adjusted to demand, in terms of quality and quantity

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Data basis for evaluation questions 9.2.1 and 9.2.2 2009 2010 2011

Baseline indicators

Total amount of products sold (tonnes)

5 154 025 142 268 146 979 Promoting concentration of supply

Promoting sale of products produced by the member

Ensuring that production is adjusted to demand, with regard to quality and quantity

(a) Certified organic production

6 2 765 7 887 767

(b) Protected geographical indication and protected designation of origin

7 0 0 0

(c) Certified integrated production

8 7 274 63 913 5 824

Amount of products sold that comply with the requirements for a specific “quality scheme” (1) (4) according to the main types of “quality scheme” (tonnes)

(d) Private programmes for certified product quality

9 0 800 0

Optimisation of product costs No data 10 0 0 0

Increase in the commercial value of a product

The total value of products sold/total amount of products sold (national currency/kg) (1)

11 23 38 36

Stabilisation of product prices No data 12 2 981 0 0

Number of persons that have completed a training programme/training activity over the past three years (number)

13 14 15 1 Promoting knowledge and improving human potential

Number of agricultural holdings that are members of a PO/APO and that use the advisory services (number)

14 217 137 75

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2009 2010 2011

Result indicators

(a) Certified organic production

Change in sold production amounts that comply with the requirements of a specific “quality scheme” (1)

4 267 185 87

(b) Protected geographical indication and protected designation of origin

Change in sold production amounts that comply with the requirements of a specific “quality scheme” (1)

5 0 0 0

(c) Certified integrated production

Change in sold production amounts that comply with the requirements of a specific “quality scheme” (1)

6 6 213 5 332 3 545

Actions aimed at improving or maintaining product quality

(d) Private programmes for certified product quality

Change in sold production amounts that comply with the requirements of a specific “quality scheme” (1)

7 0 0 0

Change in unit value of the sold production (national currency /kg)

8 6.48 -0.36 23.39

Estimated effect on production costs (national currency/kg) 9 -0.75 0 -0.5

Evaluation question 9.2.1: To what extent have the operational programmes implemented under the National Strategy contributed to ensuring that the production of the recognised producer organisations is adjusted to demand, in terms of quality and quantity? The amount of sold products that comply with the requirements for a specific “quality scheme” (1) (4) according to the relevant quality types of quality scheme has been extremely varied during the 2009-2011 period. During this period, certified organic production + certified integrated production amounted to 11 500 and 77 000 tonnes. This is a significant amount, although less than one percent of the total amount. The number of agricultural holdings that are members of a PO and that use the advisory services fell, from 217 in 2009 to 137 in 2010 and 75 in 2011. There is no reliable registered data that indicates any effect regard to quality indicators such as “protected geographic indication and protected designation of origin”. Evaluation question 9.2.2: To what extent have the operational programmes implemented under the National Strategy been efficient with respect to the objective of ensuring that the production of the recognised producer organisations is adjusted to demand, in terms of quality and quantity?

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As the action had a number of objectives, and as the effects can be extremely varied and have a longer time span, and as the data basis is limited, it is impossible to assess or quantify how efficiently the objective has been reached. This would require a precise calculation of the resources used and the concrete effects during the entire period. 4.3. Evaluation question regarding boosting products’ commercial value Objective Evaluation question Boosting products' commercial value

9.3.1 To what extent have the operational programmes implemented under the National Strategy contributed to boosting the commercial value of the products of the recognised producer organisations? Details with respect to the contribution of: (a) actions aimed at planning of production; (b) actions aimed at improving or maintaining product quality; (c) actions aimed at improving marketing; and (d) other actions.

9.3.2 To what extent have the operational programmes implemented under the National Strategy been efficient with respect to the objective of boosting the commercial value of the products of the recognised producer organisations?

Data basis for evaluation questions 9.3.1 and 9.3.2 2009 2010 2011 Result indicators Change in unit value of the sold production (national currency /kg) 2 6.48 -0.36 -0.36 Baseline indicators Increase in products’ commercial value

Total value of the products sold/total amount of products sold (national currency/kg) (1)

11 23 38 36

Evaluation question 9.3.1: To what extent have the operational programmes implemented under the National Strategy contributed to boosting the commercial value of the products of the recognised producer organisations? The total value of products sold / the total amount of products sold has risen during the 2009-11 period (from DKK 00.23/kg in 2009 to DKK 00.38 in 2010 to DKK 00.36/kg in 2011). There have therefore been significant positive changes in the unit values. This increase can be an effect of the operational programmes that have been implemented, but it can also be – entirely or partially – a result of changes in the product range or market conditions etc. Evaluation question 9.3.2: To what extent have the operational programmes implemented under the National Strategy been efficient with respect to the objective of boosting the commercial value of the products of the recognised producer organisations?

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In this instance too, the action has a number of objectives; the effects can be very varied and have a longer time span and as the data basis is limited, it is impossible to assess or quantify how efficiently the objective has been reached. This would require a precise calculation of the resources used and the concrete effects during the entire period. 4.4 Evaluation question on optimising production costs Objective Evaluation question

Optimising production costs

9.4.1 To what extent have the operational programmes implemented under the National Strategy contributed to optimisation of production costs, of recognised producer organisations and/or their members? Details with respect to the contribution of: (a) actions aimed at improving or maintaining product quality, and (b) other actions.

9.4.2 To what extent have the operational programmes implemented under the National Strategy been efficient with respect to the objective of optimisation of production costs, of recognised producer organisations and/or their members?

Data basis for evaluation questions 9.4.1 and 9.4.2 2009 2010 2011

Result indicators

Estimated effect on production costs (national currency/kg) 3 -0.75 0 -0.5

Evaluation question 9.4.1: To what extent have the operational programmes implemented under the National Strategy contributed to optimisation of production costs of recognised producer organisations and/or their members? - Optimising production costs: No data Data have, furthermore, been registered for the estimated effect of the actions on production costs. The following changes were registered in 2009, 2010 and 2011: -0.75, 0 and 0.75. As the changes are registered as an effect of the actions, a direct and measurable effect can be confirmed. - Advisory service Consulting specific targeted advisory services is a precise way of managing development in the long term. However, the effects of these actions can be long-term and not very measurable in the short-term. It is, however, worth noting that 55 percent of all POs used the advisory service in 2009. This fell considerably in 2010 and 2011 – as the share of all POs and all fruit, berry and vegetable producers, cf. Table 1

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Table 1. Number of agricultural holding that are members of POs and that use the advisory service (number) – altogether and as share of all POs and all producers. 2009 2010 2011 Number of fruit and vegetable producers that are active members (2) of the PO/APO

392 358 341

Number of agricultural holdings that are members of a PO and that use the advisory services (number)

217 137 132

Total number of fruit, berry and vegetable producers in Denmark 2 191 2 162 1 942 Share (% of POs) that use the advisory service 55.4 38.3 22.0 Share (% of all) that use the advisory service 9.9 6.3 3.9 The same tendency can be seen with regard to the number of people that completed a training programme or activity over the past three years. The number has also fallen significantly during the period. 2009 2010 2011 Baseline indicators

Number of people that have completed a training programme or activity during the past three years (number)

13 14 15 1 Promoting knowledge and improving human potential Number of agricultural holdings that are

members of the PO/APO and use the advisory services (number)

14 217 137 75

4.5 Evaluation question on promoting concentration of supply Objective Evaluation question Promoting concentration of supply

9.5.1 To what extent have the operational programmes implemented under the National Strategy contributed to promoting concentration of supply? Details with respect to the contribution of other actions.

9.5.2 To what extent have the operational programmes implemented under the National Strategy been efficient with respect to the objective of promoting concentration of supply?

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Data basis for evaluation questions 9.5.1 and 9.5.2 2009 2010 2011 Baseline indicators

Total amount of products sold (tonnes)

5 154 025 142 268 146 979

(a) Certified organic production

6 2 765 7 887 767

(b) Protected geographical indication and protected designation of origin

7 0 0 0

(c) Certified integrated production

8 7 274 63 913 5 824

Promoting concentration of supply

Promoting sale of products produced by the members

Ensuring that production is adapted to demand with regard to quality and quantity

Amount of products sold that comply with requirements for a specific “quality scheme” (1) (4) in accordance with to the main types of “quality scheme” (tonnes)

(d) Private programmes for certified product quality

9 0 800 0

9.5.1. To what extent have the operational programmes implemented under the National Strategy contributed to promoting concentration of supply? The concentration of supply of fruit and vegetables has developed on a number of levels during the last decade. A number of conditions that affect the structural development and concentration of supply can be identified. For example; utilisation of the advantage of large production units, synergy opportunities, matching of customers and achieving greater market power etc., are all significant driving forces. This also means that it is impossible to separate the possible effect of the operational programmers on concentration in the sector. There has been an increasing concentration with regard to sales of fruit and vegetables, as, in particular, GASA Nord Grønt has won market shares. From an examination of the two largest organisations’ share of total investments (CR2) it can be seen that concentration among the current POs has fallen during the 2009-2011 period. CR1 (Concentration Rate 1) is the largest enterprise’s share of the total, while CR2 is the largest enterprise’s overall share of the total. The largest PO’s share has been relatively stable over the three years, cf. Table 2. Table 2. Concentration among POs 2009-2011 measured as the largest and two largest PO’s share of total investment during the operational programmes 2009 2010 2011 CR1 78 88 80 CR2 99 95 93

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9.5.2. To what extent have the operational programmes implemented under the National Strategy been efficient with respect to the objective of promoting concentration of supply? There is no data basis that can be used directly for analysing concentration of supply. As demonstrated other places in the evaluation however, there are data that show that the POs have become increasingly important during the period. As POs contribute to improving the concentration among fruit and vegetable producers and as the members of the POs have achieved an increasing market share during the period, it can be concluded that the concentration of supply has increased. As also mentioned in a number of places, the incentive of participation in the POs has been an important factor and it is likely that this scheme in particular has been a significant reason for the increase in concentration.

4.6. Evaluation question on stabilising producer prices Objective Evaluation question Stabilising producer prices

9.6.1 To what extent have the operational programmes implemented under the National Strategy contributed to stabilising producer prices to the benefit of Producer Organisations' members? Details with respect to the contribution of different crisis prevention and management instruments: (a) market withdrawals? (b) green harvesting or non-harvesting? (c) promotion and communication? (d) training? (e) harvest insurance? (f) support for the administration?

9.6.2 To what extent have the operational programmes implemented under the National Strategy been efficient with respect to the objective of stabilising producer prices to the benefit of Producer Organisations' members?

Data basis for evaluation question 9.6.1

2009 2010 2011 Input indicators

a) market withdrawals 20 0 0 19 885 b) green harvesting or non-harvesting of fruit and vegetables

21 0 0 3 478 615

c) promotion and communication 22 0 0 0 d) training 23 0 0 0 e) harvest insurance 24 0 0 0

Crisis prevention and crisis management

f) support for the administrative costs of establishing mutual insurance foundations

25 0 0 0

Output indicators a) market withdrawals 31 0 0 2

b) green harvesting or non-harvesting of fruit and vegetables

32 0 0 1

c) promotion and communication 33 0 0 0 d) training 34 0 0 0 e) harvest insurance 35 0 0 0

Crisis prevention and crisis management

f) support for the administrative costs of establishing mutual insurance foundations

36 0 0 0

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Data basis for evaluation question 9.6.2 2009 2010 2011 Result indicators

a) market withdrawals

Total of market withdrawals (tonnes)

13 0 0 60

b) green harvesting or non-harvesting of fruit and vegetables

Total area for green harvesting or non harvesting (ha)

14 0 0 52

c) promotion and communication

Estimated change in production amount for products that have been subject to promotion and communication activities (tonnes) (1)

15 0 0 0

d) training Number of persons that have completed a complete course of training

16 0 0 0

e) harvest insurance Total insured value (national currency)

17 0 0 0

Crisis prevention and crisis management

f) support for the administrative costs of establishing mutual insurance foundations

Total value of mutual insurance foundations established (national currency)

18 0 0 0

Evaluation question 9.6.1: To what extent have the operational programmes implemented under the National Strategy contributed to stabilising producer prices to the benefit of Producer Organisations' members? In 2011, DKK 19 885 was invested in market withdrawals and almost DKK 3.5 million on green harvesting or non-harvesting measured from the output indicators. Altogether, there have only been two actions for withdrawal and one action for green harvesting, measured from the output indicators. There have been no other investments or actions implemented in the other instruments for crisis prevention and crisis management. For the first two years, Denmark did not provide any support for these actions, but when the Vtec problem occurred in 2011, it was decided to support initiatives such as these. Vegetable prices – especially for vegetables with a short shelf-life – are relatively dependent on and sensitive to supply. It is therefore obvious that these schemes will have a stabilising effect on market prices.

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Evaluation question 9.6.2: To what extent have the operational programmes implemented under the National Strategy been efficient with respect to the objective of stabilising producer prices to the benefit of Producer Organisations' members? The result of the above investments in 2011 has been 60 tonnes of products withdrawn form the market and the total are for green harvesting was 52 hectares. As the data basis is so limited, it is impossible to quantify precisely how efficiently the objective has been achieved. Withdrawal schemes and other similar supply-limited actions have, however, been used many other places in the agriculture sector and been shown to be effective tools for stabilising prices. 4.7 Evaluation question on improving competitiveness Objective Evaluation question Improving competitiveness

9.7 To what extent have the operational programmes implemented under the National Strategy contributed to improving competitiveness of national/regional producer organisations in the fruit and vegetables sector?

9.8 To what extent has the National Strategy contributed to improving competitiveness of national/regional fruit and vegetables sector?

Data basis for evaluation questions 9.7 and 9.8 2009 2010 2011 Baseline indicators Improving competitiveness

Total value of products sold by the producer organisation (PO)/ association of producer organisations (APO) (national currency) (1)

1 580 702 850 790 052 467 839 790 361

Impact indicators Improving competitiveness

Estimated change in the total value of products sold for the specific PO/APO

1 73 597 768 19 321 812 58 119 044

An increasing share of the total production value from Danish fruit and vegetable production comes from the POs. The total value of products sold by the POs rose from DKK 581 million in 2009 to DKK 840 million in 2011, corresponding to a 45 percent increase. During the same period, the total production value of vegetables, mushrooms and fruit and berries fell from DKK 1 692 million to DKK 1 518 million – corresponding to a decrease of 10 percent, cf. Table 3. Table 3. Production value for vegetables, fruit and berries in Denmark and the total value of products sold by the POs 2006 2007 2008 2009 2010 2011 Greenhouse vegetables 537 538 557 557 504 506 Field vegetables 543 636 735 778 764 690 mushrooms 76 74 66 64 65 55 Fruit and berries 206 254 289 293 275 267 Total 1 362 1 502 1 665 1 692 1 608 1 508 PO production value, DKK million

581 790 840

PO production value, percent 34.3 49.1 55.3 Note: PO production value = value of products sold by PO Source: Danish AgriFish Agency (2012) and Statistics Denmark

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As shown in the table, there has been a significant increase in the PO production value share of the total production value during the period from 2009-2011. The share has thus increased from 34 percent to 55 percent. This demonstrates that the POs have had a significantly increasing importance during the period. 4.8 Evaluation question on improving the attractiveness of membership of producer organisations

Objective Evaluation question Improving the attractiveness of producer organisation's membership

9.10 To what extent have the operational programmes implemented under the National Strategy contributed to improving the attractiveness of producer organisation's membership?

Data basis for evaluation question 9.10 2009 2010 2011 Baseline indictors Improving motivation to become a member of a producer’s organisation

Number of fruit and vegetable producers that are active members (2) of the PO/APO

2 392 358 341

Impact indicators Change in the total number of fruit and vegetable producers that are active members (1) of the specific PO/APO (number)

2 49 -8 35 Improving motivation to become a member of a producer’s organisation Change in the total area of fruit and

vegetable production cultivated by members of the specific PO/APO (ha) (3)

3 1 028 397 -511 02

Evaluation question 9.10: To what extent have the operational programmes implemented under the National Strategy contributed to improving the attractiveness of producer organisation's membership? During the period from 2009-2011, there was a significant decline in the number of fruit and vegetable producers that were active members of a PO. The number fell from 392 in 2009 to 341 in 2012, corresponding to a 13 percent drop. However, the fall corresponds generally to the decline in the number of fruit and vegetable producers, which was 11.4 percent. The PO producers’ share of total number of agricultural holdings has thus been relatively constant during the period, cf. Table 4. Table 4: Number of fruit and vegetable producers that are active members of a PO and the total number of agricultural holdings with fruit and vegetable production 2006 2007 2008 2009 2010 2011 Field vegetables in all 1 069 1 046 1 081 1 027 957 888 Fruit and berries in all 1 405 1 364 1 357 1 164 1 205 1 054 Total 2 474 2 410 2 438 2 191 2 162 1 924 PO producers total 392 385 341 PO producers, percentage 17.9 16.6 17.6

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Note: The POs are calculated as number of producers while the total figures represent number of agricultural holdings, which means that the figures are not completely comparable. It is thought, however, that this does not significantly affect the development tendencies during the period. Source: Danish AgriFish Agency (2012) and Statistics Denmark (2012) With regard to the total area of fruit and vegetables produced by members of a PO, there is an almost constant development. The area increased by 3.5 percent in 2010, but fell back to the 2009 level in 2011. During the same period, the total area of fruit and vegetables fell by 2.3 percent and the POs’ market share rose from 31.8 percent to 32.5 percent during the period from 2009-2011, cf, Table 5. Table 5. Total area of fruit and vegetables produced by members of a PO and the total area of fruit and vegetables in hectares. 2006 2007 2008 2009 2010 2011 Field vegetables in all 9 930 9 817 11 048 11 462 10 720 11 144 Fruit and berries in all 8 083 8 322 8 294 7 723 7 797 7 596 Total 18 013 18 139 19 342 19 185 18 517 18 740 PO area ha. 6 098 6 313 6 099 PO area percent 31.8 34.1 32.5 Source: Danish AgriFish Agency (2012) and Statistics Denmark (2012) It should, however, be noted that fruit and vegetable producers include both field growers and greenhouse growers. One should therefore be aware of not drawing too strict conclusions with regard to total areas. As the spilt between the total greenhouse and field areas is not likely to change significantly over a two to three year period, it is reasonable to assess the development in the total areas of POs and all agricultural holdings respectively. It is characteristic that the agricultural holdings that are members of a PO are relatively large in size, in relation to the average. 4.9 Evaluation question on maintaining and protecting the environment

Objective Evaluation question Maintaining and protecting the environment

9.11 To what extent has the operational programmes implemented under the National Strategy contributed to maintaining and protecting the environment? In particular, to what extent has the National Strategy contributed to: a) Soil protection? b) Water protection? c) Habitats and biodiversity preservation? d) Landscapes preservation? e) Climate change mitigation? f) Air quality preservation? g) Reducing waste production?

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Evaluation question 9.11: To what extent has the operational programmes implemented under the National Strategy contributed to maintaining and protecting the environment? a) Soil protection The National Strategy includes a number of possibilities with regard to soil protection: - Actions for soil protection (e.g. practical techniques for the prevention/reduction of soil erosion, plant covering, protection of soil and topsoil)

- Contribute to soil protection: Areas of fruit and vegetable production where there is a risk of soil erosion, where measures have been implemented to prevent soil erosion

- Preserve and protect the environment - Environmental actions: Actions for soil protection (e.g. practical techniques for the prevention/reduction of soil erosion, plant covering, protection of soil and topsoil)

There are no registered indications for any of these areas. There are therefore no registered effects for these areas. In this context, it should also be mentioned that for purely biological and physical reasons, actions regarding soil protection are probably more relevant in other EU countries than in Denmark. It is could thus be considered positive that the resources have been used in areas other than soil protection. b) Water protection There are a number of options regarding water protection in the National Strategy: - Improved use and/or management of water, including saving water and drainage - Improvement of the use and/or management of water, including saving water and drainage - Contribute to sustainable use of water resources (e.g. areas of fruit and vegetable production with water saving measures)

The following indicators are registered with regard to water protection: 2009 2010 2011 Input indicators iii) Improved use and/or management of water, including saving water and drainage

30 119 389 52 616 167 592

Output indicators Number of agricultural holdings participating in actions

44 9 4 2 iii) Improved use and/or management of water, including saving water and drainage Number of affected hectares 45 2 146 39 21 Result indicators Estimated change in annual water consumption 21 -1 192 192 Baseline indicators Contribute to sustainable use of water resources

Areas of fruit and vegetable production with water saving measures

18 80 40 21

Impact indicators Estimated change in total water consumption (m3) 7 -58 55 776 -808

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As can be seen in the above, there have been a number of different actions aimed at limiting water consumption. The validity of some of the indicators is uncertain, as an increase of water is registered in some instances (positive deviation), which is thought to be due to incorrect registration or misunderstanding rather than a actual increase in water consumption a result of the action. A comparison of the resources used in this action area, with the registered effects – as well as an assessment of the long-term effects, expected lags etc, including possible incorrect registration – show that there is a reasonable use of resources. It is generally be expected that actions with regard to water saving should have permanent effects (over a number of years). c) Habitats and biodiversity preservation 2009 2010 2011 Input indicators v) Actions for the establishment of habitats favourable to biodiversity, or the preservation of the landscape, including the preservation of historical features

32 0 0 0

Output indicators Number of agricultural holdings participating in actions

48 0 0 0 v) Actions for the establishment of habitats favourable to biodiversity, or the preservation of the landscape, including the preservation of historical features (e.g. dry stone walls, terraces)

Number of affected hectares 49 0 0 0

Baseline indicators Areas of organic production of fruit and/or vegetables (ha)

19 232 245 259

Areas of integrated production of fruit and/or vegetables (ha)

20 1 466 1 849 1 761

Contribute to the preservation of habitats and biodiversity

Areas covered by other actions that contribute to the preservation of habitats and biodiversity

21 0 0 0

Impact indicators Habitats and biodiversity No data 8 0 0 0 As can be seen, the actions directly aimed at preservation of habitats and biodiversity are more limited. Actions are those that promote areas with organic and integrated production of fruit and/or vegetables. With regard to fruit and vegetable production in Denmark, this must also be seen as a relative instrument. d) Landscapes preservation There are a number of options with regard to landscapes preservation in the National Strategy. Most are noted in c), and apart from these, there are no further actions with registered indicators. It can therefore be concluded that there are no registered effects that are aimed directly at landscapes preservation. This is, however unsurprising, considering the naturally intensive fruit and vegetable production.

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e) Climate change mitigation There are a number of options in the National Strategy with regard to climate change mitigation. 2009 2010 2011 Input indicators

Solid fuels (tonnes per tonne products sold)

23 2 2 2 Contribution to limitation of climate change - Production

Estimated annual energy consumption for heating greenhouses according to type of energy (6)

Liquid fuels (litres per tonne products sold)

24 2 2 2

Gas (m³ per tonne products sold)

25 2 2 2

Electricity (kwh per tonne products sold)

26 0 0 0

Liquid fuels (litres per tonne products sold)

27 16 16 16 Contribution to limitation of climate change - Transport

Contribution to maintaining and improving air quality - Transport

Estimated annual consumption of energy for domestic transport (5) according to type of fuel

Gas (m³ per tonne products sold)

28 0 0 0

Electricity (kwh per tonne products sold)

29 0 0 0

Impact indicators Solid fuels (tonnes) 10 0 0 0 Liquid fuels (litres) 11 0 0 0 Gas (m³ ) 12 0 0 0

Limit climate change

Estimated change in total energy consumption by energy type or fuel

Electricity (Kwh) 13 0 0 -50 000 As can be seen, there are no evident actions with regard to limiting climate change that have had any measurable effect during the period concerned. Actions limiting climate change have therefore not been a focus area during this period. However, it should be added that actions aimed at limiting or changing energy consumption can have a positive effect on the climate. f) Air quality preservation There are also a number of options here: 2009 2010 2011 Baseline indictors

Liquid fuels (litres per tonne products sold)

27 16 16 16

Gas (m³ per tonne products sold)

28 0 0 0

Contribution to limitation of climate change - Transport

Contribution to maintaining and improving air quality - Transport

Estimated annual energy consumption for domestic transport (5) according to fuel type

Electricity (kwh per tonne products sold)

29 0 0 0

As can be seen, there have not been any registered effects that have promoted air quality preservation.

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g) Reducing waste production Possible action areas: 2009 2010 2011 Input indictors vii) Actions for the reduction of waste production and improvement of waste management

34 11 900 12 331 11 960

Output indicators Number of agricultural holdings participating in the actions

52 1 125 129 vii) Actions for the reduction of waste production and improvement of waste management Number of affected hectares 53 2 070 1 862 1 901 Result indicators Estimated change in annual amount of waste produced (tonnes per tonne waste products)

26 0.000001 0 0

Baseline indicators Reduction of waste production Undefined 30 0 0 0 Impact indicators

Estimated change in annual amount of waste produced (tonnes per tonne waste products)

14 0 12 3 Waste reduction

Estimated change in packaging consumption (tonnes)

15 0 0 3

As can be seen, resource consumption has been relatively modest although the number of affected hectares has been relatively great. The directly measureable effect is, however, modest. 4.10 Supplementary evaluation of research and experimental activities and also, to some extent, training activities Research and experimental activities and also, to some extent, training activities also belong to a category of action that has strategic and long-term effects. It would therefore be very difficult, in this case, to measure effects, as a time-span of up to three years is much too short to evaluate all the effects. However, as there are a number of possible measures and as considerable resources have been allocated to the area, a short evaluation has been undertaken, cf. below. 2009 2010 2011 Input indicators a) Purchase of assets 11 0 23 868 0 b) Other types of acquisition of facility assets, including rental or leasing 12 0 0 0 c) Other actions 13 498 403 551 910 225 000 Output indicators

Number of agricultural holdings participating in the actions

14 1 2 0 a) Purchase of assets

Total value of investments (national currency) (1)

15 34 435 23 868 0

b) Other types of acquisition of facility assets, including rental or leasing

Number of agricultural holdings participating in the actions

16 0 0 0

Number of agricultural holdings participating in the actions (3)

17 142 199 129 c) Other actions

Number of affected hectares (4) 18 2 070 1 862 1 901 Result indicators Number of new technologies, processes and/or products introduced since the beginning of the operational programme

10 0 0 1

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As can be seen in the overview, actions in research, experimental production fell considerably during 2011 in comparison with previous years. In this instance, the validity of the data must be considered, as reporting with regard to the number of agricultural holdings and hectares are apparently unreliable. As also stated, one new technology, process or product has been introduced since the beginning of the operational programme. It has not been possible to evaluate the effect of this. In this context, whether the effect can be disseminated to other producers or whether this is a specific effect are also important factors. The figures show – although with variable clarity – that a considerable number of agricultural holdings and hectares have been affected by the actions, which would indicate that the effects can have a broader significance and effect. It should also be noted that the effects of research and experimental production are long-term and difficult to measure and quantify. Research and experimental production often contribute to the long-term improvement in competitiveness of a company as they make permanent advantages possible. 5. Conclusions and recommendations 5.1. Conclusions 5.1.1 Degree of utilisation of financial resources The degree of utilisation of financial resources varies significantly from measure to measure. This is largely because effect measurement can be difficult to carry out in some areas and time lags and longer-term effects make it impossible to detect all effects during the maximum five-year period. When these conditions are taken into consideration, resource costs (support payments) can be compared with the registered effects and the expected effects after the five-year period. On this basis, there can be said to be a good utilisation of resources (cost-benefit) 5.1.2 Effects and impacts of the operational programmes in relation to the objectives, targets and overall objectives set out by the National Strategy It can be concluded that it has not been attempted to reach all sub-objectives laid down in the National Strategy. However, it is seen as positive that there is a prioritisation and that the most relevant objectives have been chosen, while it has not been attempted to reach the more periphery or less relevant objectives. The questionnaire (See Annex A), it was concluded that there was agreement that the objectives were followed (5-10 on the scale). However, in some places, the evaluation was that the objectives for the operational programme in particular had been achieved, whilst the objectives for investments had not been achieved to the same extent. The questionnaire also concluded that in general, there had been a positive effect on the nine possible effects stated. The effect on employment is small or non-existent according to a couple of respondents. The reason for this is that the programme is also aimed at creating greater efficiency, which will also result in a requirement for fewer workers. At the same time, however, there is a positive effect on competitiveness in all instances, which all things being equal, would be expected to have a beneficial effect on employment in the long term.

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It is also noted that the programme has made it possible to attract and retain producers in producers organisations, thereby creating a necessary and stronger position in relation to the retail chains. One respondent also remarked that failure to appreciate the programme in 2010 has made it difficult to attract new members who are apprehensive of the authorities’ requirements. It is also stated that competitiveness has been improved via the reduction of costs for, for example, energy. It is also noted that a better market position and greater market power were achieved by selling through a PO as both market access and sales were improved. Other positive effects were: the environment, water quality, pesticide reduction, IP utilisation and asset investment in, among other things, organic farming. 5.1.3 Effectiveness, efficiency and utility of the measures included in the operational programmes implemented The questionnaire concluded that in general, there was agreement that the established operational programmes were followed. It was also concluded that EU support has had an enormous effect and has been more or less decisive. It has been evaluated that the measures are targeted and are cohesive with the overall aims and that the expected effect is also cohesive with the overall aims. 5.1.4 Overall effectiveness, efficiency and utility of the operational programmes implemented From a professional and scientific point of view it can be concluded that the actions implemented are very targeted and their expected effects can partly be lagged (delayed) and partly longer-term. One study of the effects of innovation support schemes in Danish agriculture (including market gardening) shows that the effects are long-term over a number of years. It can therefore not be expected that all effects can be registered within the relatively few years operated with in this context. In a number of instances it can also be expected that the effects will be more or less permanent so that ever year in the future will show positive effects, especially in relation to the more strategic actions (consultancy, training etc.) and with investments. The questionnaire also concludes that the Danish fruit and vegetable sector finds that the scheme is especially important and improves competitiveness. The sector also notes a number or other positive effects of the scheme. 5.1.5 Shortcomings in the definition of objectives, targets or measures eligible for support With regard to effect measurement and evaluation, it is a weakness that the stated measures can have a number of positive effects at once, and quantifying of the effects can be difficult as a number of internal or external relationships can affect the conditions. This problem is extremely difficult to solve, although one should be aware in advance that it can affect the validity of the effect assessments.

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It was mentioned that with regard to the respondents’/users’ (the producers’) requests for activities and investments that cannot at the moment be included in the programme but could be beneficial in the future, asset investments in organic farming should return to the environment sector. IP utilisation and damp management were also mentioned as important points. Areas such as storage and collection boxes for internal transport and binding systems for fruit trees were also emphasised. 5.2 Recommendations based on evaluation findings, including possible proposals for adaptation of the National Strategy and EU policy The questionnaire contained a number of recommendations from respondents. It was especially noted that no guidelines have, as yet, been issued by the Danish AgriFish Agency, which is why there are expectations to what can be done differently next time. However, a number of respondents note that they would welcome an opportunity to engage in a constructive dialogue with the Danish AgriFish Agency to help formulate the guidelines. Two of the respondents note that they are so alarmed at the stipulated requirements that they are considering withdrawing from the programme. 5.2.1 Recommendations on the system set out for the monitoring and evaluation of the National Strategy In the questionnaire, the respondents generally felt that it is relatively easy to set up systems for registering the effects of individual measures, individual actions and investments. In general it was assessed that it is easier to set up systems for the individual measures than for actions and investments. It was also added that this has become more difficult and challenging due to environmental issues. One respondent also notes that effect indicators are very tangible and easy to measure, as they are usually calculated in production value, number of tonnes produced, number of growers and number of hectares. There also seemed to be an understanding among the producers that some form or reporting must be present and that there must be a connection between public support, control and reporting. It is also noted that the current control is so comprehensive that the producers’ organisations would appear to be under suspicion. The number of incorrect registrations should be limited as much as possible with regard to the validity of the subsequent analyses and conclusions. By comparing of data from year to year, obvious incorrect registrations can probably be identified and corrected. Automatic incorrect registrations, e.g. if negative values cannot occur, can limit the number of incorrect registrations. 5.2.2 Recommendations to address shortcomings in the objectives, targets or measures selected under the National Strategy and on needs for defining new instruments In the questionnaire, the producers were asked for concrete proposals and recommendations for adjustments to the programme in general, to the National Strategy and short and long-term administration. The producers’ most significant proposals, recommendations and comment can be found below.

• It is stated that there should be a more businesslike and visionary approach that ensures the industry is utilised optimally

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• An overall balance is needed with constructive cooperation that ensures compliance with EU Regulations as well as the development of the industry

• Development-oriented management or overall frameworks – positive attitude from the Danish AgriFish Agency to want to do it and not only concentrate on small problems

• A catalogue of ideas is needed (instead of exhaustive lists), with a National Strategy that, in relation to the environmental area in particular, ensures analyses of where the greatest benefits for the environment are, and setting overall aims for Denmark from these.

• It should be clearer what is legislation, guidelines, National Strategy and approval of operational programme and approval

• Specific explanatory guidelines • Simpler language and less ‘legalese’ in communication • Quicker and more result-oriented case administration time • Coordination of data with other public bodies with regard to area, pesticides and compost • New guidelines for balance in the operational programme • Using IT systems, is should be possible to coordinate data and registers so that there is

no double-reporting to public authorities • It should be possible to get an answer to relevant and actual problems and questions the

users might have. Shorter response times are also necessary. It may be necessary to give extra resources to the Danish AgriFish Agency

• Regarding the National Strategy: There is a general need for adaptation. IT is however, important that what is stipulated in the National Strategy applies and is not subsequently ignored by the European Commission, of which there have been a number of examples in the past

• There should be more formal contact forums and ERFA schemes between the Danish AgriFish Agency and the industry. This will aid keeping up with development, dealing with problems as they occur, ensure better coordination and create a better common understanding of the issue.

• There should be a balance between the deadlines and conditions demanded of the industry by the Danish AgriFish Agency with regard to reports with regard to payment, which the Danish AgriFish Agency itself lays down

• In a number of instances it is noted that the requirements for investments and for reporting are too strict. There is a need to adapt to reality.

• Finally there is also a proposal for a common EU administration of the programmes A number of respondents emphasise that the Danish AgriFish Agency would doubtlessly like to be efficient and service-minded but that the ordinary employees are afraid of incorrectly administering the programme and thus dare not take decisions. The administrative employees are pleasant and friendly and as such the industry gets on well with the employees in the Agency, however, there is a need for a change in and support for the administration of the programme so that the best possible use is made of it. Great changes are therefore not necessary in the administration of the Danish AgriFish Agency. Instead, there should be a focus on better dialogue with users, a more flexible administration, better guidelines, shorter case management times, etc, cf. the above.

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5.2.3 Recommendations on the coherence and complementarity with other EU and national instruments The questionnaire also notes that coordination with rural areas programmes could be a good thing. 5.2.4 Recommendations on the design of the future National Strategy In most cases, there will be greater or lesser conflicts of interest between the industry on one side and the public authority/administration on the other. The industry wants to use the programme as much as possible and as efficiently and profitably as possible. The public authority/administration wants to ensure compliance with the rules and that there is coherence between the legal basis and the practical implementation of the programme. In all cases, there seems to have been a certain amount of opaqueness with regard to the legal basis and the legislative framework, which has lead to uncertainty throughout the process. This should also be seen from the context that reprisals for small and/or unintentional errors in the administration of the programme seem rather extreme. Finally, it should also be taken into consideration that the Danish fruit and vegetable sector is quite different from the average in the EU, which means that it is necessary to carry our special adaptations, precautions or interpretations in Denmark, which all contribute to making administration of the programme difficult. There are also instances of dissatisfaction with – or lack of understanding of – the whole idea of the programme, which cannot be blamed on the administration. This is a purely political decision. It is positive that the industry wishes to contribute to the formulation of report forms guidelines, etc., and even though there already is cooperation in the area, this could undoubtedly be improved for the benefit of all. This of course, requires a clear Regulation to work from and that the industry adheres to this framework. The reports clearly state that - the industry believes the programme is very important - there is a significant achievement of objectives with regard to most effects - the industry understands the system, with regard to control and reporting and wishes to contribute to a cooperation to make the programme and its implementation more efficient and flexible As the programme does not have a direct focus on such a structurally well-developed fruit and vegetable sector in Denmark, there is a risk that there can be continual problems with administering and utilising the programme effectively. The Danish management/administration can be caught between, on one side, an imprecise or untargeted Regulation and on the other, an industry that wishes to use the programme as much as possible. There is a risk that in the future, a number of producers’ organisations will not use the programme unless there is a greater clarity and security with regard to the requirements for the producers’ organisations, to allow them to participate in the programme.

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On the other hand, it should be noted that the Danish fruit and vegetable sector finds that the programme improves competitiveness, which is especially important. At the same time, the sector notes a number of other positive effects of the programme. Considering the latest developments in the sector and the future extensive economic and market challenges, it is vital that the sector is able to make the most of the programme in the future.