2019
Commissioner for Agriculture and Rural Development Phil Hogan said that the European Commission will allocate EUR 1 billion to European farmers, which should be used to compensate for losses in the event of market disruption in the context of the EU trade agreement with Mercosur. However, the European Commission has not yet provided any further information on this extraordinary support, according to some sources, this is only a step the Commission is taking to ensure support of European farmers for the trade agreement. Indeed, the Commission has not yet given detailed information on from where the EUR 1 billion will be allocated in the event of market disruption - to date, this could be funded from the CMO Regulation, indirectly, and money for the support could be allocated from the general CAP budget. The Spanish NGO ASAJA has already objected to this possibility, calling it absurd, particularly in the context of the already proposed cuts to the CAP budget. The CAP budget could fall by as much as 15% in the next programming period, while Commissioner Hogan warned that Britain leaving the EU could cause a deficit in the EU budget of up to EUR 12 billion. The Spanish ASAJA therefore refused to cut the CAP budget and stated that any compensation for losses due to the Mercosur trade agreement should be financed from sources outside the CAP. The EU agreement with Mercosur and the Commission's proposal to compensate farmers for losses of EUR 1 billion have also been criticized by a number of MEPs and the Italian NGO Confagricoltura.
Summary of trade agreement with Mercosur is available here.
2019
The European Commission and Ireland have promised Irish cattle farmers’ compensation of EUR 100 million in the event of market disruption caused by the United Kingdom leaving the EU. Last week, Irish Minister of Agriculture Michael Creed said that cattle farmers in Ireland have been confronted with uncertainty, market volatility and low prices since last autumn. Creed also provided more detailed information on extraordinary support for Irish farmers who would have to reduce their carbon footprint to qualify for compensation. Farmers will have to reduce the production of nitrogen fertilizers from cattle breeding by 5% per herd, the reduction will have to take place from 1 July 2020 to 30 June 2021, and production will be compared with the level of nitrogen fertilizer production from 1 July 2018 to 30 June 2019. Furthermore, subsidy shall be granted for each slaughtered adult animal that has been slaughtered between 24 September 2018 and 12 May 2019, compensation will be granted at a rate of EUR 100 per animal, up to a maximum of 100 cattle slaughtered per herd. In addition, the aid will be granted to suckler cows which have calved during 2018, with aid up to EUR 40 per animal, up to a maximum of 40 cows per herd. Breeders of bovine animals intended for milk may not claim compensation if their herds are larger than 40 head of cattle.
More information is available here.
2019
Belgian MEP Marc Tarabella (S&D) seeks to provide support for the establishment of a European Food Forum in the European Parliament, which should bring together MEPs from the EP Committees on Agriculture and Rural Development to discuss food policy; environment, public health and food safety; the internal market and consumer protection; industry, research and energy; and trade. Representatives of these Committees would meet regularly with other members of the Forum, including farmers, food and beverage processors, trade representatives, NGOs and researchers. Membership for MEPs should be free of charge; other members should pay between EUR 500 and EUR 10,000. The first meeting of MEPs who would be interested in establishing the Forum should take place in the second half of September, and the Forum could be officially opened in November 2019.
2019
In recent months, the European institutions have agreed on the text of the directive, which also regulates the occurrence of dual quality food and products in the EU single market. Under the Directive, the sale of food products of different composition with the same packaging within different Member States is a misleading (not prohibited) commercial practice. Any penalties should be dealt with on a case-by-case basis. Czech MEP Kateřina Konečná (GUE / NGL) considers the final version of the directive to be a victory for the food sector over the Member States; in her opinion, products with the same packaging but with different composition in the EU single market should be banned. According to Konečná, the occurrence of dual quality in the single market is a serious problem without being adequately addressed at the moment. According to Polish MEP Róży Thun und Hohenstein (EPP), who is also Vice-Chair of the IMCO Committee, the adopted wording of the directive permits cheating by allowing producers to sell different products on different EU markets under the same label. The Directive will not be reviewed until 2023, two years after its entry into force. This is too late, according to Polish MEP Thun und Hohenstein, and she is therefore considering reopening discussions on this topic with other IMCO members in the coming months.
2019
The European Commission's Joint Research Centre (JRC) has published a study on the pros and cons of enhancing price transparency along the agri-food chain. According to the JRC, the main benefits of enhancing transparency should include raising awareness of the market functioning, strengthening opportunities for risk management (improving the decision-making process) and reducing the feeling of uncertainty about market developments. The main risks identified by the JRC were the risks associated with data confidentiality, data security, increased competitive pressure and a possible drop in sales prices. The study was published in the context of the upcoming vote of the Committee on the Common Market Organization on the issue of enhancing transparency in the agri-food chain, which should take place in September 2019. The JRC study ran from 23/10/2018 to 05/02/2019 with LV, SK and BE being involved the most (13%, 12% and 10% of all responses), and HR, CZ, CY, IE, LT and NL involved the least (only one response per country).
The study is available here.