Brussels, 06/11/2013 (Agence Europe) - European Commissioner for Agriculture Dacian Ciolos “is proposing to hold a meeting on 22 November with representatives of the French poultry export sector and the French minister”, his spokesperson, Roger Waite, has announced. However, he took pains to scotch any hopes that the Commission will change its stance on the end of export refunds for poultry meat.
On 18 July of this year, the Commission announced that this aid, which allowed European chicken to compete with Brazilian poultry on the international market, particularly in the Middle East, would be removed. One consequence of this move can be seen in the French company Tilly-Sabco: as of January, the company is to suspend its chicken export activities, which accounts for 90% of its turnover and provides work for almost all of its staff of 300-340.
“It is important to note that export refunds are a market management tool linked to the common agriculture policy, which is triggered and the amounts calculated on the basis of market conditions. They are by no means meant as a mechanism to support the restructuring of an individual company affected by a competitiveness problem and the strategic choices of its managers, who were informed of this move long ago”, the Commission explained in a press release.
Other mechanisms created in the framework of the new CAP, on the other hand, give each member state the option of implementing a specific recovery plan for individual sectors affected by a competitiveness issue and to preserve jobs, the services of Dacian Ciolos reiterate. Hence, as of January next year, a rural development sub-programme can be created to help the sector to regain its competitiveness, invest, innovate and adapt to changing markets.
Refunds set at zero. At the time of going to press, all export refunds for agricultural products are set at zero. Up to the month of July 2013, frozen poultry carcasses enjoyed this market mechanism. Between 2003 and 2013, €887.8 million in total of the Community budget went to supporting exports of poultry meat, €767.7 million of which went to French players in the sector (€41 million in 2013).
The reduction of export refunds for products of this kind was announced by the European Commission a long time ago. It has brought the measure in gradually in order to give market players longer to take the necessary measures and adapt their strategies. The reduction has been carried out in three stages: from €32.5/100 kg to €21.7 in October 2012, then to €10.85/100 kg in January 2013 and €0 in July 2013. Those involved in the industry and the French authorities were notified of the measure in 2010, the Commission points out.
With high prices at European level, cereals prices which have fallen considerably and steady consumption, it was no longer possible to continue to pay these refunds. Furthermore, the European Parliament and Council decided, in the framework of the reform of the CAP adopted in June 2013, to use this tool only in the event of crises on the market. (LC/transl.fl)