News

During the meeting of the Standing Committee for Plants, Animals, Food and Feed (PAFF) on 27/09/2022, the European Commission approved, through the representatives of the Member States, the introduction of the first mirror clauses - namely the ban on the import of food containing traces of the neonicotinoids thiamethoxam and clothianidin, the use of which is banned in the European Union since 2018. The European Commission's regulation will be presented to the Council and the European Parliament for a two-month review. The regulation should be adopted in 2023 and enter into force in 2026 to give importers time to adapt.
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At the Council of Ministers of Agriculture and Fisheries on 26/09/2022, Ukrainian Minister of Agriculture Mykola Solsky asked the European Union for financial support for Ukraine's plan to turn emergency routes into permanent and safe corridors for the export of grain and food from Ukraine. Ukraine is doing so to reduce its dependence on exports via the Black Sea, which could be blocked by Russia again. Ukraine is asking for 50% of the cost of each truck to expand its fleet and is proposing to build at least five terminals along the border with Romania, Hungary, Slovakia and Poland, each worth $25 million to $30 million. The Ukrainian Minister of Agriculture also asked for help in financing the construction of a pipeline for transporting vegetable oil from Ukraine to the Polish coast. Commissioner for Agriculture and Rural Development Janusz Wojciechowski promised to discuss with other commissioners the possibilities of financing these initiatives.
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Italian MEP Paolo De Castro (S&D), rapporteur of the European Parliament's Committee on Agriculture and Rural Development (COMAGRI) for the revision of protected geographical indication systems for food, wine and spirits (GIs), submitted for translations a working version of the committee's opinion with proposals for measures that should help users of this labelling. In his proposal, De Castro aims at strengthening the role of producer organizations, at greater protection of protected geographical indications, at simplifying administration and limiting interventions by the European Intellectual Property Office, and at protecting products from sustainability standards that would insufficiently reflect the specific characteristics of products and sectors. The draft opinion should be completed on 29/09/2022, it should be presented in the COMAGRI committee on 08/11/2022.

On 19/09/2022, the European Commission presented a proposal for a new emergency tool to protect supply chains in times of extreme shocks. This should ensure that basic goods can move freely in the European Union within the single market even in the event of extraordinary events, such as the coronavirus pandemic. The proposal includes several aspects, including mandatory data sharing, a requirement to stockpile critical goods, and the ability to order companies to prioritize certain orders. In its statement, the European organization representing traders - EuroCommerce welcomed the Commission's proposal but expressed concern about the possible burden that mandatory data sharing would represent for businesses in times of crisis.
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The organization dealing with ecology and environmental issues ETC carried out research in which it focused on the functioning of the global food chain. According to the findings of ETC, the dominance of a small number of large companies in the food chain is strengthening, for example, 25 years ago 10 companies controlled 40% of the world seed market, today only two companies control the same share, i.e., 40% of the world market. A similar situation prevails in agriculture. China's state-owned Cofco is now the world's second-largest agricultural commodity trader, behind US company Cargill. Cargill's sales in 2020 reached $134 billion, Cofco's sales just over $100 billion. In the agrochemical sector, the four largest companies - Syngenta Group, Bayer, BASF and Corteva - control a total of 62% of the world market. Jim Thomas from ETC said the growing dominance of a small number of companies in the market is particularly worrying at a time of high and rising food prices, the growing climate crisis and the biodiversity crisis. Big players are also approaching the use of artificial intelligence, robots, drones and blockchain, their dominance raising concerns about the manipulation of customers, the removal of decision-making powers from farmers, the replacement and control of food chain workers and the rising costs of the climate.
More information is available here.