News

Food companies Danone and Nestlé continue to strengthen in the field of plant-based alternatives to dairy and meat products. In the first half of 2020, Danone in the USA recorded an increase in its portfolio and brands focused on plant-based products by more than 3%, and Nestlé reported a 40% increase in sales of vegetarian and plant-based foods, also in the first half of 2020.
More information is available here and here.

The EU-Vietnam trade agreement entered into force on 01/08/2020. The agreement will gradually abolish customs duties on 99% of all goods traded by both parties. The European Commission states that many important EU export products, such as pharmaceuticals, chemicals or machinery will already enjoy duty free import conditions as of entry into force. Agri-food products like beef or olive oil will face no tariffs in three years, while dairy, fruit and vegetables in maximum five years.
More information is available here.

On 22/08/2020, the Commission launched a public consultation on EU Green Deal (carbon border adjustment mechanism). Europe’s efforts to go climate-neutral by 2050 could be undermined by lack of ambition by international partners, which, according to the Commission, would mean a risk of carbon leakage. This happens when companies relocate production to countries that have less stringent emissions regulations. In that case, there would be no reduction in global emissions. This risk could be avoided through a new mechanism that sets a carbon price on imports of certain goods from outside the EU. The consultation is open until 28/10/2020.
More information is available here.

US Agriculture Secretary Sonny Perdue said last week that the EU’s Green Agreement and the goals of the Farm to Fork strategy would weaken the competitiveness of the European agricultural sector and protectionism in international trade policies. According to Perdue, the Farm to Fork strategy and the Biodiversity strategy, both part of the Green Deal, will lead to a decline in EU agricultural production, jeopardize the viability of European farmers and reduce their ability to figure on world markets.
More information is available here.

Covid-19 was confirmed last week in the largest Polish slaughterhouses focused on poultry processing, 75 employees were infected, and another 394 employees are in quarantine. Following its own cases of coronavirus in slaughterhouses, Germany submitted proposals last week for new rules for slaughterhouses to prevent the further spread of the disease in the future. With effect from January 2021, Germany proposes a ban on subcontracting services, and with effect from April 2021, a ban on short-term employment contracts. Slaughterhouse controls should also be strengthened.
More information is available here and here.