Brussels, 30/03/2012 (Agence Europe) - It is essential for European agriculture to preserve and improve its competitiveness and market shares both in its internal market and in exports, and initiatives, both within the EU and in third countries, to promote the benefits of consuming European products have a contribution to make. As announced (see EUROPE 10585), the European Commission adopted a communication on Friday 30 March which seeks to establish a “reinforced value-added European strategy” for promoting the tastes of Europe.
Presenting the communication to the press, Agriculture Commissioner Dacian Ciolos said that the debate on this text will be followed by the publication of a legislative proposal on agri-food promotion policy by the end of this year. Agri-food is Europe's largest industry in terms of number of jobs and turnover (the food chain represents 6% of European gross domestic product), the commissioner pointed out, adding that, despite the crisis, the sector was doing rather well economically. The EU's export capacity is showing signs that offer encouragement for the future, Ciolos said. In 2011, agri-food exports were worth over €100 million and the trade balance is positive, he pointed out, that is, the EU exports more than it imports. The European agri-food sectors greatest asset, he argued, is quality. That is the reason why the Commission has formed the view that the instruments available for the promotion of European agri-food products are not up to the task of exploiting the full potential of the sector. The communication proposes a number of options for developing promotion instruments and determining a new strategy, to be discussed with the profession and member states: how to enhance European added value (there are relatively few multi-country initiatives for promoting European products in third countries, Ciolos said), how to make management of initiatives simpler, how to increase the synergies between the various promotion instruments while taking account of the specific natures of the various sectors (specific promotion schemes already exist in the wine and fruit and vegetables sectors) and how to promote European know-how among European consumers.
There is also the issue of finance that will have to be resolved at a later date, when the common agricultural policy (CAP) budget is agreed. Ciolos said that consideration would be given to how to increase funding for a more ambitious promotion policy. Currently €50 million are spent annually on promotional activities. Information and promotion activities related to local markets and short supply chains will be covered by rural development programmes prepared as part of a cooperation project and excluded from the future promotion scheme.
Among the options considered in the communication are: - extending the scope of the information and promotion measures beyond trade organisations, for example, paying attention to “the role given to private enterprises that propose programmes with high added value for the EU”; - the eligibility of certain processed agricultural products; - increased support for the promotion of European food quality schemes such as the protected designation of origin (PDO), the protected geographical indication (PGI) and traditional specialities guaranteed (TSG), and of products recognised under these schemes; - activities could also deliver thematic messages illustrating the special characteristics of European products (gastronomical aspects, health issues, or animal well-being); - indications of origin (on the internal market, including the origin as the main indication cannot be authorised but it could be included as a secondary indication; by contrast, on the external market, indicating the national origin of a product in addition to its European origin, which is the main indication, “might be an advantage on certain markets”); - on brand names, the possibility of implementing mixed schemes on the external market that would include a generic section and a commercial section where private brands could be presented. The participation of brand names should be subject to a common framework that guarantees compliance with competition rules.
The text also raises the political issue of whether the Community-level response to a crisis should stem from the future promotion policy or from the horizontal measures already included in the proposals for the CAP in 2020.
These programmes are co-financed on the basis of a tripartite agreement where the EU contributes a maximum of 50%, the trade organisation a minimum of 20% and the member states concerned pay for the rest. In response to questions from the press, Ciolos showed his willingness to discuss the level of joint funding (whether to maintain the current levels of co-financing or increase them).
Between 2001 and 2011, 518 - mainly three-year - programmes were approved, representing a total of €576 million from the EU budget. For the period 2001-2011, the majority of the programmes were centred on the EU market (70% by number and value of programmes) and about 9% were multinational programmes (borne by several member states). (LC/transl.rt)