Impact of the Common Agricultural Policy on the development of viticulture in Bulgaria

Abstract

Common Agricultural Policy /CAP/ of the European Union consists rules and mechanisms that regulate the production, marketing of agricultural products in the European Union and development of rural areas. Nowadays CAP is oriented to sustainable farming development, environmental benefits and landscape, quality and food safety. The effects on vine from the implementation of the CAP in Bulgaria can be assessed as positive about 10% as the CAP for Arable Area Payments Scheme and market intervention has proved as ineffective for Bulgarian vine. It is not yet satisfactory the situation with the spending of funds from National Program for Support in the vine sector. Absorption of funds in the first of the measures “Restructuring and Conversion” is about 53%. The second measure “Crop Insurance” is used with great interest and has a high absorption of funds.There is a problem with the spending of funds in the third measure "Promotion in third countries”. For grape growers a new export opportunities mean that they should not abandon but to maintain and to improve their vineyards or invest in the creation of new vineyards. Unfortunately funds under this measure have not yet been implemented. The future perspectives for development of vine and wine sector in Bulgaria depend mainly from the implementation of a more active policy to increase the trade with countries interested in our wines, such as Sweden, Finland, Denmarkand, Russia and some Asian countries. This will expand the market opportunities of the sector.