Strategic tools
118 Food Chain Safety Strategy 2013-2022
The establishment of a conscious consumer society has to be important for the completion of future desired by the Strategy . Each contributor of the food chain has the prior responsibility to care for food chain safety within its competency .
The presence of data, information and knowledge possessed by the actors of the food chain has only a little benefit . It only becomes a valuable knowledge if it is accessible for everybody and increases through brainstorming .
Financial Plan
Financial Plan
The strategy formulates the way that is necessary for the achievement of the desired targets, where during the implementation developments and reconstruction are needed . In general the frame of the possible implementation depends on the volume of the depth of innovation, the degree of reconstruction and their financial extent .
The financial plan is not only confined to the division of innovation resources but also allocates the assets for operational purposes . In accordance with the government needs this is aligned with the main goal of the strategy as the government has to convert to a strategy-oriented working method in the area of food chain safety . The available sources should not been spent by the government because of traditional practices but because of the completion of the citizen’s and the governance’s expectations according to a plan and in a measureable way .
Available resources
The main items of the realization of Food Chain Safety Strategy are the following: central budget sources, fee income (including the food chain safety control fee) and sources from the European Union .
A part of the assets is available centrally at the Ministry and the NÉBIH; the other part is available at the county government offices .
Regarding the data displayed in the resource plan it has to be considered that the information, what was available in 2013, was extrapolated and used for the calculations in advance for the next 10 years . Because of the international and national economical fluctuation and the pending
budget cycle of the EU for the following 7 years can truly influence this .
While calculating the resources it has to be also considered that primarily those direct sources are appraised here which are already available or being outlined . Obviously during the execution of the Strategy, wider involvement of external resources has to be aimed at . But this greatly depends on agreements between each program and other sectors, on the annual budget plans, and on the announcement of funds based on EU resources . However they provide good guidance on the type and amount of the available resources for the implementation of the Strategy .
According to the review of different resources currently a sum of 400 billion HUF can be taken into consideration .
Priorities and the indicative financial table Aligned with the Strategy’s targets the indicative resource sharing is one of the primary and most important tasks of the state so the most significant financial sources have to be assigned to the realization of the risk reduction program .
The county government offices have their available sources – in the strategies current timeframe more than 200 billion HUF – which has to be assigned completely to control and test duties and also for the functional costs of authorization and registration tasks .
This is supplemented by additional central budget source of 100 billion HUF and also EU resources (e .g . co-financing of the support of eradication of contagious animal diseases) .
The programs belonging to the target area
121 Food Chain Safety Strategy 2013-2022
Financial Plan
The strategy formulates the way that is necessary for the achievement of the desired targets, where during the implementation developments and reconstruction are needed . In general the frame of the possible implementation depends on the volume of the depth of innovation, the degree of reconstruction and their financial extent .
The financial plan is not only confined to the division of innovation resources but also allocates the assets for operational purposes . In accordance with the government needs this is aligned with the main goal of the strategy as the government has to convert to a strategy-oriented working method in the area of food chain safety . The available sources should not been spent by the government because of traditional practices but because of the completion of the citizen’s and the governance’s expectations according to a plan and in a measureable way .
Available resources
The main items of the realization of Food Chain Safety Strategy are the following: central budget sources, fee income (including the food chain safety control fee) and sources from the European Union .
A part of the assets is available centrally at the Ministry and the NÉBIH; the other part is available at the county government offices .
Regarding the data displayed in the resource plan it has to be considered that the information, what was available in 2013, was extrapolated and used for the calculations in advance for the next 10 years . Because of the international and national economical fluctuation and the pending
budget cycle of the EU for the following 7 years can truly influence this .
While calculating the resources it has to be also considered that primarily those direct sources are appraised here which are already available or being outlined . Obviously during the execution of the Strategy, wider involvement of external resources has to be aimed at . But this greatly depends on agreements between each program and other sectors, on the annual budget plans, and on the announcement of funds based on EU resources . However they provide good guidance on the type and amount of the available resources for the implementation of the Strategy .
According to the review of different resources currently a sum of 400 billion HUF can be taken into consideration .
Priorities and the indicative financial table Aligned with the Strategy’s targets the indicative resource sharing is one of the primary and most important tasks of the state so the most significant financial sources have to be assigned to the realization of the risk reduction program .
The county government offices have their available sources – in the strategies current timeframe more than 200 billion HUF – which has to be assigned completely to control and test duties and also for the functional costs of authorization and registration tasks .
This is supplemented by additional central budget source of 100 billion HUF and also EU resources (e .g . co-financing of the support of eradication of contagious animal diseases) .
The programs belonging to the target area
of food chain safety knowledge management can contribute to the effectiveness of the risk reduction program and its results have a feedback on the operation of the knowledge management . The two areas cannot achieve goals individually only if they support each other . Programs connected to the „Control of unknown hazards and unacceptable risks” strategic target, are also – on the grounds of network approach - closely related to the areas mentioned above . Thus out of the eleven programs defined by the Strategy, ten primarily serves innovative targets .
According to Article 47B .§ (10) of the Act on food chain safety “The incoming food chain control
fee has to be earmarked for the implementation of duties determined by the food chain safety strategy and by the multiannual and annual control plans . 10% of this fee has to be assigned to innovation . The income can also be assigned to operation .”
For the completion of targets, the incoming food chain control fee has to be supplemented by national and EU resources .
According to these the distribution of the innovative resource of approximately 40 billion HUF among the strategic goals and programs is the following:
The indicative resource distribution between the strategic target areas is indicated below:
The usage of existing sources as shown above does not require other central financial sources to be included but the financial tools, which also include the food chain control fee, need to be utilized more effectively and the budget allocation system have to be organized . The current allocation structure does not meet the expectations anymore, the less the targets formulated in the strategy, as that was aligned to the previous administrative service fee system . This is extremely important due to the fact that not only the operational framework has to be modified but also the investment allocation to finance the restructure . It also has to be clear that this does not mean more national resource need, it is only about the alignment of the resources to the reality .
Cost-benefit analysis
During the implementation of the strategy approximately 400 billion HUF will be spent within ten years, which can raise the economical question, what is truly on the benefit or profit side . During the answering of the question the strategy creators investigated that through the operation of the food chain control system which are the additional values appearing above basis values . As a result four areas have been identified:
By the improvement of consumer awareness within 10 years several hundreds of billions HUF (cost of illness, absenteeism, sick leave, life years lost) can be achieved .
According to estimates the extent of black and grey markets may reach the yearly amount of
Strategic goals Programs Distribution of resources (%)
Establishing and operating the knowledge centre
Global information management 17%
38%
Introducing transparent risk analysis 2%
Reorganization of the laboratory network 19%
Developing a knowledge network and innovation
Building the basis of the knowledge network 3%
36%
Modern education and training 14%
Partnership in research and innovation 10%
Active public relations 8%
Control of known hazards Strong and credible authority 20% 20%
Control of unknown hazards and unacceptable risks
Successful fight against abuse 6%
6%
Protection of critical infrastructures 1%
Strategic target areas Strategic target areas
Planned resources
Billion HUF %
Food chain safety knowledge management
Establishing and operating
the knowledge center 13 .7 3 .7%
Developing a knowledge network
and innovation 12 .9 3 .5%
Control of food chain risks
Control of known hazards 337 .6 92 .0%
Control of unknown hazards
and unacceptable risks 2 .3 0 .6%
Technical support 0 .5 0 .1%
Total 367
Financial Plan 123
122 Food Chain Safety Strategy 2013-2022
of food chain safety knowledge management can contribute to the effectiveness of the risk reduction program and its results have a feedback on the operation of the knowledge management . The two areas cannot achieve goals individually only if they support each other . Programs connected to the „Control of unknown hazards and unacceptable risks” strategic target, are also – on the grounds of network approach - closely related to the areas mentioned above . Thus out of the eleven programs defined by the Strategy, ten primarily serves innovative targets .
According to Article 47B .§ (10) of the Act on food chain safety “The incoming food chain control
fee has to be earmarked for the implementation of duties determined by the food chain safety strategy and by the multiannual and annual control plans . 10% of this fee has to be assigned to innovation . The income can also be assigned to operation .”
For the completion of targets, the incoming food chain control fee has to be supplemented by national and EU resources .
According to these the distribution of the innovative resource of approximately 40 billion HUF among the strategic goals and programs is the following:
The indicative resource distribution between the strategic target areas is indicated below:
The usage of existing sources as shown above does not require other central financial sources to be included but the financial tools, which also include the food chain control fee, need to be utilized more effectively and the budget allocation system have to be organized . The current allocation structure does not meet the expectations anymore, the less the targets formulated in the strategy, as that was aligned to the previous administrative service fee system . This is extremely important due to the fact that not only the operational framework has to be modified but also the investment allocation to finance the restructure . It also has to be clear that this does not mean more national resource need, it is only about the alignment of the resources to the reality .
Cost-benefit analysis
During the implementation of the strategy approximately 400 billion HUF will be spent within ten years, which can raise the economical question, what is truly on the benefit or profit side . During the answering of the question the strategy creators investigated that through the operation of the food chain control system which are the additional values appearing above basis values . As a result four areas have been identified:
By the improvement of consumer awareness within 10 years several hundreds of billions HUF (cost of illness, absenteeism, sick leave, life years lost) can be achieved .
According to estimates the extent of black and grey markets may reach the yearly amount of
Strategic goals Programs Distribution of resources (%)
Establishing and operating the knowledge centre
Global information management 17%
38%
Introducing transparent risk analysis 2%
Reorganization of the laboratory network 19%
Developing a knowledge network and innovation
Building the basis of the knowledge network 3%
36%
Modern education and training 14%
Partnership in research and innovation 10%
Active public relations 8%
Control of known hazards Strong and credible authority 20% 20%
Control of unknown hazards and unacceptable risks
Successful fight against abuse 6%
6%
Protection of critical infrastructures 1%
Strategic target areas Strategic target areas
Planned resources
Billion HUF %
Food chain safety knowledge management
Establishing and operating
the knowledge center 13 .7 3 .7%
Developing a knowledge network
and innovation 12 .9 3 .5%
Control of food chain risks
Control of known hazards 337 .6 92 .0%
Control of unknown hazards
and unacceptable risks 2 .3 0 .6%
Technical support 0 .5 0 .1%
Total 367
1000 billion HUF . As long as during ten years a progress of 10% is seen, then on the top of indirect profit the income of the government could be increased by several hundreds of billions HUF .
The rise and stability of agricultural export constitutes fundamental part of a balanced national economy . Based on expert estimates it can be stated that the food chain control system means 1% added value to the agricultural export . Relying on this an extrapolation for a 10 year period would give a 50 billion HUF added value .
The raise of competitiveness is important in all areas and its main tools include innovation and economy development . In the next 7 years of the EU budget cycle it will be possible to reach the majority of the sources through the cooperative programs of the state (authorities), research institutes and businesses . At the moment the benefit of these cannot be calculated, but as the result of product development we can count with approximately more than 10 billion HUF .
Regarding these it can be concluded that besides the base values, counting only with the significant
additional values, there is a one and a half times benefit in relation to costs . Resources needed for the guarantied food chain safety including EU sources as well, are just a small amount of the prevented losses and the covered areas income .
Financial traceability and restructuring
The Strategy’s budget plan may be well established within the order of targets but the dependency from the macro-economical environment carries many unsecure points . Therefore attention has to be paid to the traceability that has to be included in the food chain safety policy program defined by the Chief Veterinarian and it has to be analyzed and corrected according to the annual budget . During the establishment of the indicator system, besides the definition of performance indicators, financial measurement points are needed as well . In order to ensure transparency, the degree of financial completion, that covers the utilization of the food chain control fee as well, has to be presented in the annual report on the Strategy made by the Chief Veterinary Officer .
Schedule
Financial Plan
124 Food Chain Safety Strategy 2013-2022
1000 billion HUF . As long as during ten years a progress of 10% is seen, then on the top of indirect profit the income of the government could be increased by several hundreds of billions HUF .
The rise and stability of agricultural export constitutes fundamental part of a balanced national economy . Based on expert estimates it can be stated that the food chain control system means 1% added value to the agricultural export . Relying on this an extrapolation for a 10 year period would give a 50 billion HUF added value .
The raise of competitiveness is important in all areas and its main tools include innovation and economy development . In the next 7 years of the EU budget cycle it will be possible to reach the majority of the sources through the cooperative programs of the state (authorities), research institutes and businesses . At the moment the benefit of these cannot be calculated, but as the result of product development we can count with approximately more than 10 billion HUF .
Regarding these it can be concluded that besides the base values, counting only with the significant
additional values, there is a one and a half times benefit in relation to costs . Resources needed for the guarantied food chain safety including EU sources as well, are just a small amount of the prevented losses and the covered areas income .
Financial traceability and restructuring
The Strategy’s budget plan may be well established within the order of targets but the dependency from the macro-economical environment carries many unsecure points . Therefore attention has to be paid to the traceability that has to be included in the food chain safety policy program defined by the Chief Veterinarian and it has to be analyzed and corrected according to the annual budget . During the establishment of the indicator system, besides the definition of performance indicators, financial measurement points are needed as well . In order to ensure transparency, the degree of financial completion, that covers the utilization of the food chain control fee as well, has to be presented in the annual report on the Strategy made by the Chief Veterinary Officer .
Schedule
Schedul e
The Food Chain Safety Strategy’s programs are in close connection with each other, basically each program has an effect on other measures . (See: Figure 11 .) In this complex objective system the tasks are built upon each other but at the
current stage we cannot complete a detailed network plan . This has to be noted while the targets of the Food Chain Safety Strategy are further analyzed and the food chain safety policy program will be worked out .
Reorganization of the laboratory network Protection
of critical infrastructures
Strong and credible authority
Global information management
Active public relations
Introducing transparent risk analysis
Developing
a knowledge network and innovation
Extensive risk reduction
Successful fight against abuse
Partnerships in research and innovation Modern
education and training
Figure 11 . Relationship between the Food Chain Safety Strategy’s programs
127 Food Chain Safety Strategy 2013-2022
Schedul e
The Food Chain Safety Strategy’s programs are in close connection with each other, basically each program has an effect on other measures . (See: Figure 11 .) In this complex objective system the tasks are built upon each other but at the
current stage we cannot complete a detailed
current stage we cannot complete a detailed