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The Warsaw Voice » Business » October 14, 2009
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ARR Administrating Promotion Funds
October 14, 2009   
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In compliance with the Common Agricultural Policy instruments established by the EU, the Agricultural Market Agency (ARR) supports the promotion of agricultural products. In pursuing the policy, the Agency administers two mechanisms, one being the "Support of Promotion and Information Activities on Markets for Selected Agricultural Products," while the other is activity no. 133 of the "Information and Promotion Activities" under the 2007-2013 Rural Development Plan. So far, producer organizations in Poland have been making little use of the mechanisms, mainly because of problems with securing a sufficient financial contribution of their own. The list of the Agency's tasks has recently been expanded to include administering promotion funds established for selected groups of agricultural products. Part of the funds will be available to producer organizations as a financial contribution.

The law on food and agricultural product promotion funds, in effect as of July 1, 2009, establishes nine separate funds: the Milk Promotion Fund (replacing the Dairy Sector Promotion Fund), Pork Meat Promotion Fund, Beef Meat Promotion Fund, Horse Meat Promotion Fund, Mutton Meat Promotion Fund, Poultry Meat Promotion Fund, Grain and Cereal Products Promotion Fund, Fruits and Vegetables Promotion Fund and Fish Promotion Fund. Among other things, the funds will be used to pay for campaigns, including ones involving EU funds, aiming to improve the competitiveness of Polish food and agricultural products, promote consumption and advise the public about the quality and benefits of the food. Part of the funds will be used to finance the participation of producers and processing plants in exhibitions, fairs, trade training, market and scientific research as well as to improve the quality of food products and processed food.

Promotion fund resources will be disbursed by managing committees made up of members of trade organizations and chambers of agriculture. The committees will make autonomous decisions on which tasks are to be carried out and financed/co-financed with one of the funds. Individual funds will consist of payments made by enterprises which operate in individual branches of agriculture.

While buying any of the goods which are subject to contributions to the promotion funds, enterprises are obliged to calculate a fee totaling 0.1 percent of the net value of the goods and charge the supplier who sells the goods to them.

In the case of the Milk Promotion Fund, businesses that purchase milk under the law of April 20, 2004, on the structure of the market for milk and dairy products, have to pay a fee of zl.0.001 per every kilogram they buy, by virtue of decisions issued by the President of the Agricultural Market Agency.

When an enterprise is obliged to pay contributions to more than one promotion fund, it submits a single declaration listing, in separate entries, the amounts paid to individual funds. The declaration form is available at the www.arr.gov.pl website and at the head office and regional branches of the Agricultural Market Agency. Enterprises are also required to register in the Agency's Central Register of Enterprises.

The due amount should be paid to the fund's bank account when consecutive quarters of a year end, but no later than on the 25th day of the month following the end of a quarter. By that deadline, enterprises are required to submit an appropriate declaration to the President of the Agricultural Market Agency (via the Regional Branch closest to the head office of the enterprise).

The authority to manage resources of individual promotion funds has been vested in the President of the Agricultural Market Agency by the legislator. All decisions regarding the disbursement of the funds will be made by the President of the Agricultural Market Agency relying on resolutions made by the managing committees.

For further information on the promotion funds go to www.arr.gov.pl under the "Promocja żywno¶ci" tab or call the information line, tel. 22 661-72-72.
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