Last modified: 2013-07-30
There were opened opportunities for agricultural enterprises by utilisation of subsidy systems after the Czech Republic´s EU accession. On the other hand domestic agricultural producers have to face direct competition of producers from other European countries. Horizontal or vertical integration of Czech agricultural producers can be seen as an adequate reaction to current state of manner, especially in the form of agricultural producers´ groups. Mentioned producers´ groups should help to gain a better position within bargaining on the market for participating enterprises. The horizontal integration is also the subject of subsidy measures of the Common Agricultural Policy that aims at current subsidy purposes of agricultural producers. Important horizontal integration tendencies, which prevail over vertical one in the Czech Republic, are according to their orientation of production mainly slaughter pigs, bovine and poultry, milk, grain, oil plant or fruit and vegetables. Related to subventions of producer groups’ performance, there are most important subsidy titles, namely Setting up of Producer Groups within Horizontal Programme of Rural Development and measures within Common Market Measures of Fruit and Vegetables. Nevertheless, there have to be stated not favour economic development related to mentioned areas of production, caused mainly by decreasing or volatile prices of agricultural producers, which affect production´s profitability of mentioned agricultural commodities.