Brussels, 11/06/2012 (Agence Europe) - The European Parliament rapporteur on the “common organisation of markets” section of Common Agricultural Policy (CAP), Michel Dantin (EPP, France) considers that, “enhancing the agricultural production sector's market power within the supply chain is a priority”. He is therefore suggesting in his draft report (which will be presented on 18 June during the EP agricultural committee) that the “safety net” perspective be developed (market measures), that the private sector be involved in market management, that sugar quotas be maintained until 2020 and vine plantation rights in the wine sector kept until at least 2030.
According to the rapporteur, the logic of the safety net for producers should be developed as a whole, as well as the definition of reference prices and private storage aid activation modalities, which fully take into account pricing practices on the markets, production costs and producers' profit margins. He is therefore suggesting the extension of the public intervention period for butter and skimmed milk powder, which would run from 1 January to 31 August, instead of from 1 March to 31 August, as proposed by the European Commission. He is also proposing that the butter intervention limit be set at 70,000 tonnes, instead of 30,000 t; and bovine meat intervention price be re-valued and therefore, “linked to reference prices, so that it can automatically vary in the event of reference price adjustments”. Michel Dantin is proposing that table olives, hemp fibres, poultry meat, goat and sheep curd and cheese are included on the list of products that the Commission is proposing for private storage eligibility.
Private sector and market management. Given, “the gradual disengagement operated by the public sector in the daily steering of the markets”, Dantin considers that it is, “essential that the different private sector actors can, subject to public control, take over the reins and play an increased role in this field”. He is suggesting that producer bodies and organisations “set up and activate a system that establishes coordination of temporary market withdrawals practised by their members”. This would help, “to anticipate severe market imbalances and restore normal operations in the event of serious upset”. This system would be funded by contributions made by member organisations and, if needs be, with EU intervention and private storage aid within a 50% global costs limit.
Producer organisations. The agricultural production sector's market power needs to be enhanced within the food supply chain, particularly by promoting its low level of concentration compared with downstream and upstream sectors, explained the rapporteur. According to the latter, “creating strong producer organisations for all sectors, with substantially increased margins of manoeuvre compared with the European Commission's proposal (particularly at a level of supply management and contractual relations) constitutes an appropriate way of reaching the CAP's fundamental objectives: ensuring a decent life for the farming population”. He is proposing that producer organisations are allowed to set objectives such as, “establishing stricter reduction rules than the provisions set out by Union or national regulation” and that, “crisis prevention and management instruments, particularly by moving towards market withdrawal operations, private storage, processing, product promotion and sales… and negotiating on their behalf, or if necessary on behalf of their members, delivery contracts for agricultural and agri-food products with downstream operators”. Specificities in agricultural activity and the food chain now have to justify partial exemptions in agriculture in the field of competition, which also has to reflect the need for supply concentration and strengthening farmers' markets, explained Dantin.
Milk. Recurring market crises and the planned scrapping of the quota system make necessary, in the event of serious market disturbances, the creation of an “assistance system and funding based on developments affecting individual milk production”, explained the MEP. When market prices are close to reference prices, the system should help to encourage producers to adopt a responsible approach in the event of market fluctuations. Such an approach could help the market to recover sufficiently and prevent any need to apply for private storage or public intervention aid. Therefore, according to the MEP, it will be necessary to authorise the Commission, in the event of serious disturbances on the market for milk and dairy products, to grant aid to milk producers who voluntarily reduce their production, but also impose a levy on milk producers who increase their production during the same period and in the same proportion.
Sugar. The MEP considers that, “in order to enable beetroot producers to complete their 2006 reform adaptation and continue competitiveness efforts initiated since then, it appears necessary for the quota regime to be extended until 2020 at the latest”.
Wine. The planting rights system (which the Commission had proposed scrapping in 2015) helps to guarantee the quality of wine, its profile and repute, the preservation of cultural landscapes, territorial management and the maintaining of a family-based production system, pointed out the rapporteur. According to the latter, this system of plantation rights must be maintained until at least 2030.
Positive response from EU agricultural organisations
Similarly to the point of view expressed by COPA (Committee of Professional Agricultural Organisations in the European Union), the COGECA (General Committee for Agricultural Cooperation in the EU), considers that Dantin's draft report requires enhanced agricultural market management measures in the context of current extreme price volatility. The draft report notably calls for the reintroduction of olive oil reference prices, the updating of the private storage aid mechanism for olive oil and the making of the aid procedure compulsory and not optional, which is welcomed by the COPA. It also notes the favourable position expressed by Dantin with regard to private storage being extended to the ovine and caprine sectors and that the public intervention period for butter and skimmed milk powder be also extended. The marketing campaign for fruit and vegetables is also defined from 1 January to 31 December. The draft report calls for producer organisations to be strengthened, such as co-operatives, which will help farmers to obtain better market prices, as well as an increased role. This also corresponds to the position expressed by COPA-COGECA. (LC/transl.fl)