The CAP towards 2020 Common Market Organisation
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1 The CAP towards 2020 Common Market Organisation Regulation 1308/2013 of the European Parliament and the Council ("CMO" Regulation) Regulation 1370/2013 of the Council ("Fixing" Regulation) Meeting with COMAGRI: 23 September 2014 DG Agriculture and Rural Development European Commission
2 350 Maize and Wheat prices /ton - FOB US SRW Gulf Wheat - FR Cl. 1 Rouen Maize - FR Bordeaux US 3YC Gulf Intervention price Source: IGC a nd DG AGRI
3 3 EU 28 - Cereals exports and imports from 2000 to 2014 (including flour and other processed products in grain equivalent) 40 mio t IMPORTS EXPORTS Coarse grain exports Wheat exports Trade balance Wheat imports Coarse grain imports 30 Source: EUROSTAT Marketing Year (July-June)
4 EU competitiveness Milk 4
5 5
6 EU trade in bovine products IMPORTS EXPORTS Tonne Jan- Jul 14 0
7 EU trade of pig products IMPORTS EXPORTS Jan- Jul Tonnes product weight.
8 EU trade in Poultry products IMPORTS EXPORTS in 1000 Tonnes cwe Jan- Jul 14 0
9 EU Egg Trade Balance (not including Hatching eggs) 275 in 1000 Tonnes 231 IMPORTS EXPORTS Jan- Jul
10 EU Wine Trade Balance in Eur Import in Value Export in Value DG AGRI C2 18 September 2014
11 EU Olive oil Trade Balance in Eur Import in Value Export in Value
12 Taking stock The focus on market orientation has resulted in: An EU agricultural sector that is competitive with prices in most sectors in line with world prices, other than butter. The EU being an open market the biggest importer of agricultural products, but also a net exporter in recent years. The main developments to EU agricultural markets are: Increased volatility, also due to further integration into world market. Shocks from market disruptions (e.g. Russian embargo, diseases, adverse weather). End of quotas for milk and sugar no shocks expected. 12
13 The new CMO Regulation Role of new CMO Regulation is to: Provide an effective safety net (public intervention/private storage) and to intervene in crisis situations (new crises reserve - 400M p.a. in 2011 prices). Encourage producer cooperation to improve bargaining power in a situation where consolidation in downstream sectors is increasing. Aid schemes for certain sectors (fruit and vegetables, wine, olive oil, apiculture) and specific purposes (schools). Marketing standards for agricultural products important element. Note: limited budget for market measures - around 2.7 billion p.a. 13
14 The crises measures in use Russian embargo Measures introduced already, on basis of Article 219 CMO, in response to Russian embargo: Fruit and vegetables sector: Possibility to use safety net with improved conditions for POs and individual producers for withdrawal, green harvesting and non-harvesting operations. More targeted measure, taking into consideration exported quantities to Russia, covering withdrawal, green harvesting and non-harvesting operations. Dairy sector: Specific private storage aid scheme for certain cheeses. Private storage aid scheme for butter and skimmed milk powder (Article 17 CMO). Extension of the public intervention period buying-in period for butter and SMP until end Crises provisions have worked, additional experience to be gained 14
15 The CAP and competition law Competition law applies to agriculture unless otherwise provided CMO contains derogations: Farmers' agreements on production, sale and storage unless risk for CAP objectives (Art 209 CMO). Collective negotiations by Producer Organisations in certain sectors: milk, beef & veal, olive oil, arable crops (Art CMO). Special regimes such as fruit & vegetables, sugar. DG COMP drafts guidelines on Art CMO Aiming at legal certainty. Interpretation of conditions of applicability of collective negotiations. Continued role for National Competition Authorities.
16 Improving producer cooperation ocmo promotes increased cooperation between producers through the producer organisation (PO) and interbranch organisations (IBO) model all sectors. opossibility for MS to regulate the supply of cheese or ham covered by a PDO or PGI, at the request of producers and subject to certain conditions and safeguards. opossibility for MS to introduce mandatory written delivery contracts for all sectors, with certain minimum contractual OR elements, subject to certain conditions and safeguards. ocontinuation of sugar sector agreements and contracts after end of quotas in
17 Lisbon Treaty issues Ordinary legislative procedure (OLP) First experience of OLP under Article 43(2) of the Treaty confirms tendency of Legislators to put detailed provisions in basic act, rather than give delegated powers to COM. Risk less operational, lack of future flexibility and slow reaction to technological developments. New CMO delegated and implementing acts Over 200 Commission Regulations with legal base CMO. Aim is to "reduce" to less than 40 new delegated and implementing acts. Task Force set-up new open working method involving active engagement with the EP, Member States and stakeholders. Aim is simplification, lower administrative burden, and fewer errors. 17
18 Thank you for your attention, any questions? European Commission DG Agriculture and Rural Development 18
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