EESC determined to defend the European agricultural model [ 11/05/2012 ] At its April plenary session, the EESC endorsed an opinion on the "CAP towards 2020". The EESC, which counts farmers among its members, calls for sufficient financial resources, a bridging of the gap between Member States, more flexibility between pillars and a strengthening of the position of producer organisations and cooperatives.
"We need a balanced, predictable, viable, less bureaucratic, flexible and transparent future CAP to attract the young generations to this sector. Simpler rules, while moving towards better targeting, maintaining sound financial management and controllability", said Dilyana Slavova (Various Interests' Group, Bulgaria), rapporteur of the EESC opinion on the CAP towards 2020.
"The opinion we have adopted today is the result of mutual concessions amongst all sectors of civil society; not only farmers but also agricultural workers, consumers, representatives of trade and industry, as well as environmental groups who have reached a common position allowing for a new CAP that should benefit all Europeans”, added Franco Chiriaco (Workers' Group, Italy), co-rapporteur of the EESC opinion on the CAP towards 2020.
Following the Commission proposals on the post-2013 CAP, the EESC adopted on 25 April its opinion on the future of the CAP. Although welcoming the new proposals, the EESC notes that the European agricultural model cannot operate at world market prices and conditions without sufficient resources at EU level. Indeed, in the current proposals for the Union budget for the 2014-2020 period, the resources earmarked for the CAP would be clearly reduced in constant price terms.
Financial resources and level of support at national level
The EESC also advocates closing the gap between the levels of support received by farmers in the different Member States. The main features of the future CAP in terms of the redistribution of financial resources among Member States should be balance, fairness and pragmatism, bearing in mind agricultural diversity across the EU.
According to the current Commission proposal, Member States in which the level of direct support remains lower than 90% of the European average should be allowed to transfer funds from their rural development envelope to their direct payments envelope. The EESC recommends that the Commission increase the flexibility for transferring funds from Pillar II (rural development) to Pillar I (direct payments) from 5% to 10%.
With regard to the extreme price volatility experienced in recent years, the EESC points to the need for more effective market management instruments.
Food supply chain
The EESC calls for better supply-demand coordination and a rebalancing of market power along the food supply chain. Since 77% of the EU-27 food market is already controlled by only fifteen commercial chains, the Committee also feels that efforts are needed to balance commercial supply against the power of the distribution market. It is vital to strengthen the position of farmers and their organisations (including cooperatives) in the food supply chain, in order to secure a better return from the markets.
For more information, please contact:
Karin Füssl, Head of the Press Unit
E-mail: karin.fussl@eesc.europa.eu
Tel.: +32 2 546 8722
What is the current situation of the European Union's wine sector [ 04/05/2012 ] The EU is a leading producer of wine. Producing some 175m hl every year, it accounts for 45% of wine-growing areas, 65% of production, 57% of global consumption and 70% of exports in global terms.
Since the introduction of the common market organisation (CMO), the wine market has developed considerably. In brief, it has been characterised by a very short initial period of equilibrium, followed by a very marked increase in production against a constant level of demand, and finally, a continuous decline and a very noticeable qualitative change in demand from the 1980s. These changes have been dealt with by significantly developing the CMO.
It started out very liberal, with no curbs on plantings and very few market regulation instruments (the aim being to confront the annual variations in production). It then coupled freedom on plantings with the virtually guaranteed sales, thus generating serious structural surplus. From 1978 it became very interventionist with the ban on planting and the obligation to distil the surplus. Towards the end of the 80s financial incentives for giving up vineyards were reinforced.
The 1999 reform of the CMO for wine strengthened the goal of achieving a better balance between supply and demand on the Community market, giving producers the chance to bring production into line with a market demanding higher quality and to allow the sector to become competitive in the long term - especially in the face of increased global competition following GATT - by financing the restructuring of a large part of present vineyards.
This reform proved insufficient to reduce wine surpluses and considerable sums still had to be spent on disposing of them. A new reform of the wine market was needed.
The reform adopted by the EU in 2008 has the following goals:
making EU wine producers even more competitive - enhancing the reputation of European wines and regaining market share both in the EU and outside
making the market-management rules simpler, clearer and more effective – to achieve a better balance between supply and demand
preserving the best traditions of European wine growing and boosting its social and environmental role in rural areas.
After 2015, current EU restrictions on planting vines will be lifted, enabling competitive producers to increase production.
"E-Bacchus" is a database which,
consists of the Register of designations of origin and geographical indications protected in the EU in accordance with Council Regulation 1234/2007;
lists non-EU countries' geographical indications and names of origin protected in the EU in accordance with bilateral agreements on trade in wine concluded between the EU and the non-EU countries' concerned
lists the traditional terms protected in the EU in accordance with Council Regulation 1234/2007.
Last modifications of E-Bacchus database [pdf]
Launching the 50th Anniversary of the Common Agricultural Policy campaign [ 05/04/2012 ] This year, the European Commission has launched the CAP@50 communication campaign to mark the fiftieth anniversary of the Common Agricultural Policy, a cornerstone of European integration, that has provided European citizens with half a century of food security and a living countryside. The year-long communication campaign includes an interactive website, an itinerant exhibition, audio-visual and printed materials, as well as a series of events in Brussels and the Member States.
"2012 is an important year not only to remember the past 50 years of history, but especially for us to look ahead towards a new reform of the Common Agricultural Policy", says Dacian Cioloş, Commissioner for Agriculture and Rural Development. "Back in 1962, Europeans were predominantly worried about having enough food on their plates. Today food security remains important, but we have also new concerns such as climate change and the sustainable use of natural resources. This campaign will help to reflect on this evolution".
Background
Under the slogan "A partnership between Europe and Farmers", the CAP@50 campaign has been launched today in an inter-institutional event in Brussels gathering more than 150 guests involved in the history and current reform of the CAP, from the EU institutions, but also former Commissioners of Agriculture and stakeholders. (See the campaign launching video animation).
Several national launching events are also foreseen in the six founding members of the EU : Germany (Berlin, 20 January); Italy (Verona, 2 February); France, (Paris, 27 February) and Benelux (tbc, 4 April).
Throughout 2012 a series of events will be organised at national and EU level and an itinerant exhibition will travel around Europe from spring 2012. The exhibition will be displayed in several EU Institutions and Member States.
The 50 Years of CAP website in 22 languages will present a video showing how agriculture affects your everyday life and a video statement by the Commissioner presenting the campaign. Information on different events taking place all over Europe will be continuously updated on the website. The logo "50 Years of CAP. Ready for the future" will be available for downloading on the campaign's website.
For more information
50 Years of CAP Campaign (with all the videos and the logo):
http://ec.europa.eu/agriculture/50-years-of-cap/index_en.htm
Promoting the tastes of Europe [ 30/03/2012 ] Brussels, 30 March 2012 – The European Commission has today adopted a Communication entitled 'Promotion measures and information provision for agricultural products: a reinforced value‑added strategy for promoting the tastes of Europe'. The Communication is the second stage of the promotion policy reform process launched in July 2011, which aims to make the agriculture and agri‑food sector more dynamic and more competitive and to promote sustainable, intelligent and inclusive growth.
On this occasion Dacian Cioloș, Commissioner for Agriculture and Rural Development, said: 'The European Union has a good hand to play to make its economy more dynamic and boost growth and jobs by further optimising the benefits of its agricultural and agri‑food products, both on the European market and world markets. Exports in this sector already represent more than €100 billion. In an increasingly open world, the success of European agriculture also depends on its capacity to strengthen and develop its position. This entails new ambition for our promotion policy and putting in place a real Community strategy for optimising the use of our products.'
This new ambition is expressed in the key objectives set for the future promotion policy, centred around four themes:
real European added value;
more attractive programmes with a bigger impact;
simpler and more effective management;
new synergies between the different promotion instruments.
This Communication reflects the in‑depth consideration launched in July 2011 by the adoption of a Green Paper1 about the policy of information and promotion for agricultural products which was a leading initiative to strengthen the competitiveness of EU agriculture and which generated a broad public debate, as well as the information in the report on the external evaluation carried out in 2011 on the present promotion policy2.
This document opens the debate on the content of the future promotion policy at interinstitutional level. Once these discussions have been concluded, the Commission will present legislative proposals before the end of the year.
Background
The EU rules in force on information and promotion in the agri‑food sphere were drawn up in the 1980s. They have been adapted over the years, particularly thanks to the increase in the number of quality labels. The EU budget spent on promotion under Council Regulation (EC) No 3/2008 was €47 million in 2011 and €55 million is earmarked for 2012.
Between 2001 and 2011, 518 programmes were approved, mainly three‑year programmes, representing a total of €576 million from the EU budget. (NB: These programmes must be cofinanced by the proposing organisations and may be the subject of a financial contribution by the Member States). For the period 2001‑2011, the majority of the programmes were centred on the EU market (70% by number and value of programmes) and about 9% were multinational programmes (borne by several Member States).
This horizontal promotion system coexists with other promotion measures within the CAP, implemented within the framework of the Common Organisation of the Market [wine sector for third countries (€112 million in 2011) and the fruit and vegetable sector, through producer organisations' operational programmes (€34 million on average in 2008/09)], as well as within the framework of Rural Development.
Further information
http://ec.europa.eu/agriculture/promotion/index_en.htm
http://ec.europa.eu/agriculture/promotion/policy/communication/index_en.htm
UK government offers £15m to improve food manufacturing [ 23/03/2012 ] The UK government is offering grants of up to £15m for researchers and businesses who could develop ways to transform food manufacturing and reduce waste.
The grants are a part of a government-driven initiative to support research and development, in order to unlock the potential of the farming, food and drink sector in the UK and boost economic recovery.
Food and Farming Minister Jim Paice said that UK has a world class reputation for innovation, and this strength can be used it to the economic advantage of the whole country.
"By getting businesses innovating and enhancing the UK's reputation as a world class pioneer of new production and manufacturing techniques, the food and farming sector can be a real engine for growth," Paice added.
As a part of the initiative, the government will launch two competitions at the Farming, Food and Drink Innovation Summit, which will attract researchers and businesses to present their ideas.
Grants of up to £15m will be offered for bigger businesses to invest in projects that will increase the efficiency, sustainability and competitiveness of food processing and manufacturing, while a further £500,000 will be provided to small and medium sized businesses.
The competitions will be funded in combination by the Department for Environment Food and Rural Affairs (Defra),the Technology Strategy Board (TSB), Biotechnology and Biological Sciences Research Council (BBSRC) and the Scottish Government.
(Source: processandproduction.food-business-review.com)
New EU rules for ‘Organic Wine’ agreed [ 15/03/2012 ] New EU rules for “organic wine” have been agreed in the Standing Committee on Organic Farming (SCOF), and will be published in the Official Journal in the coming weeks. With the new regulation, which will apply from the 2012 harvest, organic wine growers will be allowed to use the term “organic wine” on their labels. The labels must also show the EU-organic-logo and the code number of their certifier, and must respect other wine labelling rules. Although there are already rules for “wine made from organic grapes”, these do not cover wine-making practices, i.e. the whole process from grape to wine. Wine is the one remaining sector not fully covered by the EU rules on organic farming standards under Regulation 834/2007.
After the vote in the SCOF, EU Commissioner for Agriculture & Rural development Dacian Ciolos stated: “I am delighted that we have finally reached agreement on this dossier, as it was important to establish harmonized rules guaranteeing a clear offer to consumers who are more and more interested in organic products. I am pleased that we emerge with rules which make a clear difference between conventional and organic wine – as is the case with other organic products. As a result, consumers can be sure that any “organic wine” will have been produced using stricter production rules.”
The new rules have the advantage of improved transparency and better consumer recognition. They will not only help to facilitate the internal market, but also to strengthen the position of EU organic wines at international level, since many other wine producing countries (USA, Chile, Australia, South Africa) have already established standards for organic wines. With this piece of legislation, the EU organic farming is now complete and covers all agricultural products.
The new regulation establishes a subset of oenological (wine-making) practices and substances for organic wines defined in the Wine Common Market Organisation (CMO) regulation 606/2009. For example, sorbic acid and desulfurication will not be allowed and the level of sulphites in organic wine must be at least 30-50 mg per litre lower than their conventional equivalent (depending on the residual sugar content). Other than this subset of specifications, the general wine-making rules defined in the Wine CMO regulation will also apply. As well as these wine-making practices, “organic wine” must of course also be produced using organic grapes – as defined under Regulation 834/2007.
Background
There are no EU rules or definition of “Organic wine”. Only grapes can be certified organic and only the mention “wine made from organic grapes” is currently allowed.
In the 2004 Organic Action Plan, the Commission pledged to establish specific organic rules for all agricultural production, including wine-making. In this context, the “OrWine” research project was financed under the 6th Framework Programme. Based on its findings, legal proposals for defining organic wine were first tabled in Standing Committee for Organic Farming (SCOF) in June 2009, but remained deadlocked and were withdrawn in June 2010. Work resumed in 2011 and the draft received a favourable opinion from the SCOF on 8 February 2012.
Key parts of the proposals
The new rules on organic wine-making rules introduces a technical definition of organic wine which is consistent with the organic objective and principles as laid down in Council Regulation (EC 834/2007) Organic production. The regulation identifies oenological techniques and substances to be authorized for organic wine.
These include: maximum sulphite content set at 100 mg per litre for red wine (150 mg/l for conventional) and 150mg/l for white/rosé (200 mg/l for conventional), with a 30mg/l differential where the residual sugar content is more than 2g per litre.
What is the current situation of the European Union's wine sector? [ 09/03/2012 ] The EU is a leading producer of wine. Producing some 175m hl every year, it accounts for 45% of wine-growing areas, 65% of production, 57% of global consumption and 70% of exports in global terms.
Since the introduction of the common market organisation (CMO), the wine market has developed considerably. In brief, it has been characterised by a very short initial period of equilibrium, followed by a very marked increase in production against a constant level of demand, and finally, a continuous decline and a very noticeable qualitative change in demand from the 1980s. These changes have been dealt with by significantly developing the CMO.
It started out very liberal, with no curbs on plantings and very few market regulation instruments (the aim being to confront the annual variations in production). It then coupled freedom on plantings with the virtually guaranteed sales, thus generating serious structural surplus. From 1978 it became very interventionist with the ban on planting and the obligation to distil the surplus. Towards the end of the 80s financial incentives for giving up vineyards were reinforced.
The 1999 reform of the CMO for wine strengthened the goal of achieving a better balance between supply and demand on the Community market, giving producers the chance to bring production into line with a market demanding higher quality and to allow the sector to become competitive in the long term - especially in the face of increased global competition following GATT - by financing the restructuring of a large part of present vineyards.
This reform proved insufficient to reduce wine surpluses and considerable sums still had to be spent on disposing of them. A new reform of the wine market was needed.
The reform adopted by the EU in 2008 has the following goals:
making EU wine producers even more competitive - enhancing the reputation of European wines and regaining market share both in the EU and outside
making the market-management rules simpler, clearer and more effective – to achieve a better balance between supply and demand
preserving the best traditions of European wine growing and boosting its social and environmental role in rural areas.
After 2015, current EU restrictions on planting vines will be lifted, enabling competitive producers to increase production.
"E-Bacchus" is a database which,
consists of the Register of designations of origin and geographical indications protected in the EU in accordance with Council Regulation 1234/2007;
lists non-EU countries' geographical indications and names of origin protected in the EU in accordance with bilateral agreements on trade in wine concluded between the EU and the non-EU countries' concerned
lists the traditional terms protected in the EU in accordance with Council Regulation 1234/2007.
Last modifications of E-Bacchus database [pdf]
Welcome to AGRELMA - The Global Food & Wine E-Marketplace - [ 02/11/2011 ] 'The Global Food & Wine Directory' is now available. Click here and sign-in...
Global wine production falls, but consumption remains stable [ 02/11/2011 ] If the world lost about 0.8% of its vineyard surface during 2010 and wine production fell to 1998 levels (263.8 millions of hectolitres or Miohl), the wine sector can still rely on consumers: global wine consumption increased a 0.4% reaching 238 Miohl, thus breaking the trend downwards started in 2007. Among the top five wine markets, US, Germany and China are the ones fuelling this slight increase. The previous is just an outline of the global wine sector portrait disclosed on Monday 20th June by Mr. Federico Castellucci, Director General of the International Organisation of Vine and Wine (OIV), which is the main intergovernmental scientific and technical organisation with an internationally recognised competence in the domains of vine, wine and other vine-derived products.“After an uninterrupted period of growth since 2000, global wine exports registered the effects of the world economic crisis in 2008 and started a downward trend in 2009. However in 2010 the trend has shifted upwards and, the global volume of exported wines is still largely superior to that recorded in 2006 and the previous years” declared Mr. Castellucci.Mr. Castellucci spoke at the official opening ceremony of the XXXIV World Congress of Vine and Wine, an event which is being held between the 20th and the 27th June in the Alfandega Congress Centre of Porto, in Portugal, and that will be followed immediately afterwards by the yearly OIV General Assembly.The XXXIV World Congress of Vine and Wine has been organised under the supervision of the Portuguese Ministry for Agriculture, Rural Development and Fishing by “Um Porto Para o Mundo”, a private not-for-profit association created especially for this event which enjoys the full support of the OIV.Worldwide report on the vine and wine sectorThe “OIV report on the state of the vitiviniculture world market”, which will be made available shortly through the OIV website (www.oiv.int), offers an accurate picture of the main trends affecting the wine sector worldwide, dominated for a long time by European countries but now experiencing the challenge posed by the expanding wine industries in the Americas, Australia and Asia (specially China).The report focuses on three main categories of indicators: surface area of world vineyards, grape production, and wine markets (production, consumption and international trade). Each one of these categories is used to rank the different countries which play a role in the wine industry regardless of their membership status in the OIV.Concerning vineyards, the global surface area showed a regression in 2010 of 61.000 hectares from the previous year and stands at 7.586.000 hectares, which compare unfavourably with the 7.647.000 hectares of 2009. Spain, France and Italy head the statistics but all of them experience a decrease, while China, the US and Argentina see their vineyards expand.After a slight increase in 2008 and a stabilization in 2009, the global grape production was marked by a 3% decrease in 2010 (reaching 644.9 million quintals) compared with 2009 (675.3 million quintals), and getting closer to 2007 levels (665.2 million quintals).The global situation of this sector in 2010 also records an interruption of the upwards trend in wine production, which after an increase of 1.1 Miohl from 2008 to 2009, has been reduced in about 7.4 Miohl (-2,7%) from 2009 to 2010.On the other hand, wine consumption recovers slightly from the global decrease of 3.6% recorded in 2009, growing from 236.5 Miohl consumed in 2009 to 238 Miohl consumed in 2010.Mr. Castellucci also presented the evolution of global wine exchanges for 2010, which was marked by an increase of more than 7% in exports and 3.3% in imports, which represent a 6.2 Miohl and a 2.8 Miohl increase, respectively.In view of the impact of the economic downturn on the wine industry, Mr. Castellucci recommended a continued commitment by Member States of the OIV to achieve the goals stated in the three-year Strategic Plan of the Organisation; the goals are aimed at minimising the negative impact of the global economic crisis on producers and consumers.(finchannel.com)
