IDEAS home Printed from
   My bibliography  Save this paper

Cost of compliance with the aquis communautaire in the Hungarian dairy sector


  • Kiss, Piroska
  • Weingarten, Peter


The implementation and enforcement of the acquis communautaire is a precondition for joining the European Union (EU). However, there is only little information on the compliance costs in the acceding countries. In this paper, the investment needs and annual costs of compliance with the part of the acquis communautaire relevant for the dairy sector is assessed at different stages of the agri-food chain in Hungary. The assessment is mainly based on a classification of farms and processors according to their level of compliance with EU standards concerning milk hygiene in 2000/01 and calculations of necessary investments in buildings, milking and cooling facilities and delivery trucks. The raw milk quality in Hungary has steadily improved since the early 1990's. In 1999, 78 % of the milk delivered to processors was in compliance with EU standards. Based on the farm structure in the reference period, the further necessary modernisation requires investments of 82 million euro causing annual compliance costs of 9 million euro or 0.1 up to 4.3 cent per litre milk. This is equivalent to 0.6 % up to 17.9 % of the average farm gate price for milk in 2000. For modernising the milk collection centres, 25 million euro are needed, and for the delivery trucks between 12 million euro and 17 million euro. Depending on the size of the milk processor and the current level of compliance, the annual compliance costs are estimated to be low, ranging from negligible 0.02 cent per litre up to 0.7 cent per litre. Based on these findings there is only limited need for the government to support the further modernisation of milk processors. State support is more relevant at the farm level. Since 68 % of the total investment needs estimated at farm level are accounted for by farms with less than 5 cows, agricultural policy should support these farmers either to considerably increase their herd size or to cease production.

Suggested Citation

  • Kiss, Piroska & Weingarten, Peter, 2003. "Cost of compliance with the aquis communautaire in the Hungarian dairy sector," IAMO Discussion Papers 55, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
  • Handle: RePEc:zbw:iamodp:14881

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    1. Panayotova, Milena & Adler, Jens, 1999. "Development and future perspectives for Bulgarian raw milk production towards EU quality standards," IAMO Discussion Papers 19, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    2. D.A. Dziegielewska, 2000. "How Much Does It Cost to Join the European Union and Who Is Going to Pay for It? Cost Estimates for the Czech Republic, Hungary, Poland and Slovenia, Complying with the EU Environmental Standards," Working Papers ir00001, International Institute for Applied Systems Analysis.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Agata Pieniadz & Heinrich Hockmann, 2008. "Factors Driving Quality Standard Compliance in the Polish Dairy Sector," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 36(1), pages 41-52, March.
    2. Ehrich, Malte & Hess, Sebastian, 2015. "The Ability Of Organisations To Adopt Foreign Trade Standards," 55th Annual Conference, Giessen, Germany, September 23-25, 2015 209202, German Association of Agricultural Economists (GEWISOLA).
    3. Vőneki, Éva, 2004. "Zur Bewertung des ungarischen SAPARD-Programms unter besonderer Berücksichtigung der Investitionen im Milchsektor," IAMO Discussion Papers 59, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    4. Voneki, Eva, 2004. "Zur Bewertung Des Ungarischen Sapard-Programms Unter Besonderer Berucksichtigung Der Investitionen Im Milchsektor," IAMO Discussion Papers 14874, Institute of Agricultural Development in Transition Economies (IAMO).

    More about this item


    Hungary; acquis communautaire; milk hygiene; dairy sector; modernisation; Ungarn; acquis communautaire; Milchhygiene; Milchsektor; Modernisierung;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:iamodp:14881. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - Leibniz Information Centre for Economics). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.