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On 22/04/2020, the European Commission confirmed the introduction of exceptional measures in the form of three delegated acts and nine CAP implementing acts to help address and stabilize the situation in the agricultural and food markets during the outbreak of the coronavirus. The package of measures also includes a private storage aid for meat and dairy products, or flexibility for market support programmes in the fruit, vegetables and wine sectors. The aid should total around € 80 million, of which around € 30 million will go to support the dairy sector (costs will be covered mainly by the EU budget for 2020). The dairy, flower and potato sectors will also be granted an exceptional derogation from European competition rules - the Commission will allow the use of Article 222 of the Regulation of the European Parliament and of the Council establishing a common organization of the markets in agricultural products. The new measures should be adopted by the end of April 2020 but must first be approved by the EU Member States. The European Parliament's Committee on Agriculture and Rural Development welcomed the Commission's decision but emphasized that much more needed to be done to help the sector. The same opinion was taken by European agricultural organizations, including the largest one, Copa and Cogeca.
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France (as well as organizations representing wine producers) called on the European Commission last week to introduce support for wine sector in the light of the ongoing coronavirus pandemic. The aid should be intended especially for the storage of unsold goods and should also be used to compensate for the fall in production prices. According to the FR and IT, the Commission's support under the proposed market measures of 22/04/2020 will not be enough, therefore enhanced support for the sector beyond the promised measures should be ensured. At the beginning of last week, the European Commission discussed support for the sector with representatives of the European Parliament, discussing exceptional storage measures, emergency distillation, flexibility in green harvesting and alternatives to on-the-spot checks.
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The G20 Agriculture Ministers met on 21/04/2020 to discuss the coronavirus pandemic and its impact on the agri-food sector. Ministers addressed the issue of unjustified restrictive measures that could lead to significant fluctuations in food prices. In a joint statement, ministers called for COVID-19 crisis measures to be targeted, transparent and temporary. The need to prevent a global food crisis, to refrain from introducing new trade restrictions, and to maintain the number of seasonal workers were also discussed.
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The European organization CLITRAVI, representing meat processors, reacted last week to the decline in emissions in the EU in connection with the introduction of restrictive measures during the coronavirus pandemic. CLITRAVI notes in this context that several establishments and transport have been limited; what has not stopped, however, is the production and processing of meat in the EU. According to CLITRAVI, global pollution during coronavirus pandemic decreased by 50%, without any reduction in livestock production. CLITRAVI therefore supported the shift of attention from the relationship between livestock production and the volume of emissions produced towards more problematic sectors.
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European demand for bioethanol as a fuel additive has currently fallen sharply due to limited traffic. The price of oil fell on 21/04/2020 to $ 16 (€ 14.73) per barrel, the lowest level since 1999. According to the German organization BDBe for bioethanol, the consumption of bioethanol in DE in 2019 fell by 2.22% compared to by 2018 to 1.16 million tonnes, bioethanol consumption increased by 6% in real terms in January 2020. Demand for bioethanol is declining throughout the year, but now, in the wake of the COVID-19 pandemic, demand for bioethanol as a raw material for disinfectants has strengthened.
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