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African milk producers are fighting against the import of skimmed milk powder from the European Union

Milk producers from Senegal, Mali, Burkina Faso, Mauritania, Chad and Niger met in Brussels with milk producers from FR, LU, NL and DE to express their dissatisfaction with the import of low-quality skimmed milk powder (SMP) with palm oil sold at low prices to the African market, thereby damaging the local industry. African representatives associate the strengthening of imports with the payment of subsidies from the EU Common Agricultural Policy combined with overproduction of milk after the end of milk quotas in 2015. African country representatives, in a declaration signed by the European Milk Board (EMB), call for ensuring the competitiveness of African milk producers and supporting farmers' initiatives in West Africa, an agreement on strengthening the competitiveness of African producers with the European Commission has not yet taken place.

EU agri-food trade break record for start of 2019

The value of EU agri-food exports in January 2019 increased for the 4th year in a row to reach a new record level of €11.2 billion. Agri-food imports also grew to a record of €10.8 billion, leading to the monthly trade value topping €22 billion, compared to €21 billion in January 2018. These are the main findings from the latest monthly trade report published by the European Commission.

The European Parliament's Committee on Agriculture and Rural Development has approved the position on the CMO; supported the introduction of regulations on the labelling of calorific values on wine labels, and denied the labelling of vegetarian and vegan foods by names that are typical for food of animal origin

On 01/04/2019, the Committee on Agriculture and Rural Development adopted its own position on the Common Market Organization for the CAP after 2020. The rapporteur for this report was French MEP Eric Andrieu (S&D).

Emergency reserve: MEPs supported the EUR 400 million emergency reserves per year and discussed whether the conditions under which this reserve could be used should be extended. Moreover, the European Commission should be enabled to reduce production in the case of market overproduction through voluntary reduction schemes. The Committee further supported the Commission to expand the number of observatories to monitor the market situation for specific commodities.

Wine: The Committee has refused to authorize the cultivation of American wine varieties in the EU, but the introduction of rules on the labelling of calorific values on wine labels have been supported (see below).

Meat: Eric Andrieu's proposal also included regulations on the labelling of vegan and vegetarian foods, which, according to the proposal, should not be designated the same way as products of animal origin. Thus, according to the proposal, it is not possible for vegetarian products to be labelled as "burger" or "sausage". The proposal was approved by the Committee. Environmental NGOs have however described the vote as a lobby support for strengthening animal production.

The resulting opinion was adopted by 29 votes in favour, 7 against, one abstained. The opinion is unlikely to be voted on by the European Parliament plenary due to the forthcoming EP elections in May (23-26/05/2019). The new composition of the Committee on Agriculture will then be able to decide whether to retain Eric Andrieu's proposal or to address it again in the fall of 2019.
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The European Parliament's Committee on Agriculture and Rural Development has adopted its position on the Common Agricultural Policy, confirming the obligation to introduce a definition of active farmer, compulsory capping of over EUR 100,000 with the possibility of deducting 50% of real staff costs, and the option not to implement capping in case of increased redistributive support allocation

Members of the EP Committee on Agriculture and Rural Development (COMAGRI) voted on 02/04/2019 on their position on the CAP Strategic Plans, a major part of the legislative package for the Common Agricultural Policy after 2020. To the CAP Strategic Plans, 5253 amendments were submitted by COMAGRI members and another 670 amendments by the concerned EP committees. EP rapporteur on the CAP Strategic Plans Esther Herranz García (ES, EPP) made out of this number of amendments a total of 130 compromise proposals, which were voted during today's meeting.

The first proposal that MEPs voted on was the amendment by German MEP Albert Dess (EPP), who proposed a complete rejection of the European Commission's proposal. The proposal was rejected by 10 votes in favour, 29 against, 4 abstentions. Most of the proposals made by the EP Committee on the Environment, Public Health and Food Safety were also rejected. However, a number of Compromise proposals by García, the rapporteur have been modified during the negotiations in order to reflect the requirements of the EP Environment Committee for a “greener” CAP.

The individual compromise proposals were voted separately, followed by the vote on the approval of the COMAGRI’s position as such. The final position of COMAGRI was supported by MEPs with 27 votes for, 17 against, 1 abstention.

Position of COMAGRI:

Definition of a real farmer: Member States must implement the definition of active, not real farmer. No supports have to be granted to those whose agricultural activity is only a minor part of their overall economic activity. Member States may exclude from this definition individuals or companies that process large-scale products, with the exception of farmer groups (agricultural cooperatives). CAP support must only be paid to those farmers who meet the definition of active farmer. This particular proposal was approved by 26 votes in favour, 16 against, 2 abstentions.

Capping of direct payments: Member states will be obliged to cap annual direct payments to farmers at the level of €100.000, but they may allow farmers to deduct 50% of agriculture-related salaries, including taxes and social contribution, from the total amount before the reduction. Capping will apply to all direct payments, with the exception of eco-schemes and support for young farmers. However, if a Member State decides to allocate at least 10% to redistributive payments, it may decide not to implement the mandatory capping of direct payments over EUR 100,000. This particular proposal was approved by 22 votes in favour, 20 against, 4 abstentions.

Eco-schemes: COMAGRI has supported the extension of climate and environmental regimes to animal welfare, so the proportion of direct payments paid for eco-schemes should also be possible to use to promote animal welfare. Member States should set up eco-scheme rules; their use should be voluntary for farmers though. At least 20% of the first pillar envelope should be allocated to eco-schemes. Two months after the Regulation comes into force (if approved), the European Commission should develop a catalogue of examples of environmental practices or systems that could be included by Member States in their CAP Strategic Plans.

Support for young farmers: According to COMAGRI, Member States must earmark at least 2% under the Pillar I. envelope to support young farmers (under 40) who start their new business as a business manager for the first time. The period for supplementary top-ups has been extended from 5 to 7 years. Within the second pillar, COMAGRI approved an increase in the maximum amount of aid for starting young farmers and rural entrepreneurial start-ups up to EUR 100,000.

Coupled Aid: VCS payments must take the form of an annual payment based on fixed areas and revenues or on a fixed number of animals, and must respect the financial capping set by Member States, which will have to be approved by the Commission. They can be paid, for example, on cereals, oilseeds, protein crops, starch potatoes, milk and dairy products, hops, or sugar beet. The payment of aid must not jeopardize the functioning of the EU single market. These proposals were approved by 31 votes in favour, 11 against, 1 abstention. COMAGRI approved allocation for VCS payments of 10 + 2% - allocation of 10 + 2% was approved by 22 votes for, 17 against, 4 abstentions.

External convergence: aligning the level of direct payments across EU Member States - external convergence of direct payments - it should be achieved by 2027; payments should be aligned to the average level of basic income support for sustainability in 2026.

Funds distribution under the I. pillar of the CAP: Member States must allocate at least 60% of the I. pillar envelope to basic income support for sustainability; at least 5% for redistributive payments; at least 20% for eco-schemes; at least 2% for support for young farmers; voluntarily, a maximum of 10 + 2% for coupled support. Member States may voluntarily allocate up to 3% of the envelope to national emergency reserve and 3% to sectoral measures.

Funds distribution under the second pillar of the CAP: at least 30% of the second pillar envelope will be allocated for agri-environmental-climate measures. Up to 40% of spending on areas with natural or other specific constraints can be included in the 30% calculation for AEKO measures. At least 30 % of the second pillar envelope should be dedicated to strengthening the competitiveness of agriculture.

Transfers between pillars: transfers from the first to the second pillar of the CAP are allowed up to 15%, including the financial amounts earmarked for capping direct payments if these amounts are earmarked for AEKO measures and if their beneficiaries are active farmers. Furthermore, the move from the second to the first pillar up to 5% is also allowed, provided that this transfer is intended to strengthen the funding of eco-schemes. Croatia, Poland, Hungary and Slovakia can move from the second to the first pillar up to 15%, but at least 5% must be dedicated to strengthening the funding of eco-schemes.

Deadline for implementing the new rules: the deadline for the implementation of the new CAP rules after 2020 should be postponed to 2022.

Budget for the CAP: according to COMAGRI, the CAP budget should be maintained at the current level.

The position of COMAGRI is unlikely to pass the vote in the European Parliament Plenary, given the closure of the current Parliament in mid-April 2019. The new EP Committee on Agriculture and Rural Development will decide whether to continue to work with the proposal, or whether to reject it and start a new one.

Environmental NGOs have expressed their disagreement with the outcome of the vote on CAP Strategic Plans; they described the vote as the victory of the industrial agriculture lobby and called on the Parliament to approve the position of the Committee on the Environment; they have received support from many MEPs

Environmental NGOs (Birdlife, WWF, EEB, and Greenpeace) disagreed with the vote on the CAP Strategic Plans in the EP Committee on Agriculture and Rural Development (COMAGRI) of 02/04/2019. According to representatives of these environmental organizations, the result of the vote is clear evidence that COMAGRI is now, more than ever, listening to the lobby of large industrial farms. According to Birdlife Europe, COMAGRI members have completely ignored the scientific evidence demonstrating the serious environmental impact of intensive farming. Greenpeace has criticized the support for virtually zero capping of direct payments for large industrial farms, which, according to Greenpeace, will lead to further devastation of the environment and climate, closing down of small farms, and maltreatment of livestock. Environmental NGOs have called on the European Parliament to approve the proposals adopted by the Environment Committee in the case of the plenary vote (including full capping of direct payments over EUR 80,000 without deducting staff costs, without the option not to implement capping in case of funding for redistributive payments, and with strict rules for the payment of coupled production aid, in particular for livestock production support).

French MEP Eric Andrieu (S&D), German MEP Maria Noichl (S&D) and Italian MEP Nicola Caputo (S&D) have also supported environmental organizations. According to these MEPs, most of the S&D political group inclines to the introduction of mandatory capping at either EUR 60,000 or EUR 80,000, with no possibility to choose between capping and strengthening funding for redistributive payments