Brussels, 04/11/2011 (Agence Europe) - Following the announcement of Commissioner for Agriculture and Rural Development Dacian Ciolos during the June meeting of G20 agriculture ministers, the European Commission launched, on Friday 4 November, a new webpage (http://www.ec.europa.eu/agriculture/ cereals/index_en.htm) containing information on European cereals, oilseeds and rice markets. Updates of the EU balance sheets will be published monthly. The new page will also feature information on prices and trade, as well as market presentations.
The Commission points out that the changes brought to the Common Agricultural Policy (CAP) have gradually done away with specific aid to cereals, oilseeds and rice. EU support for arable crops has been simplified. Farmers no longer receive subsidies depending upon what they produce and the amounts they produce. Payments have been completely decoupled.
Intervention. Buying-in cereals and rice to public storage - known as “intervention” - was introduced to protect farmers from low market prices. Today, it is used only in cases of real necessity, providing an authentic safety-net for farmers.
Trade. About 15% of the EU's wheat crop is exported annually, while large quantities of oilseeds, animal feedstuffs and rice are imported.
An import regime controls the entry of cereals and rice into the EU. Imports are subject to the issuing of a standardised import licence and, in general, payment of a tariff. For some cereals, tariffs are variable while, for others, tariffs are fixed. In addition - in accordance with the EU's commitments under the World Trade Organisation (WTO) - a number of fixed tariff import quotas are in place at a lower or zero duty.
Exports of cereals and rice to countries outside the EU are mostly subject to the issuing of an export licence. These exports have not been subsidised since 2006.
Nearly two-thirds of the EU's cereals are used for animal feed, with around one-third for human consumption. Only 3% is used for biofuels.
Oilseeds and protein crops. The EU no longer has any specific support measures for oilseeds. About two-thirds of the oilseeds consumed in the EU each year are produced in the EU but the EU imports about half the oilseed meals used annually in animal feed. Import tariffs for oilseeds are set at zero.
As of 2012, the EU no longer has any specific support measures for protein crops. Import tariffs for the main protein crops are set at zero.
Rice. Around two-thirds of the rice consumed by European citizens is grown in the EU. This is supplemented by imports of different varieties, mainly long-grain indica rice such as basmati from India and Pakistan. A small quantity of European rice - mainly japonica - is exported.
Crop-specific payments for rice have been abolished, to take effect from 2012. (LC/transl.jl)