Concluding a two-year review as part of its ongoing “Better Regulation” initiative, the European Commission adopted an updated and simplified delegated regulation for the EU fruit and vegetable sector on Monday 13 March that will strengthen the role of producer organisations (POs) and time improve the functioning of the existing market management scheme.
Every year, 3.4 million holdings across the EU, roughly a quarter of all EU farms produce some €47 billion worth of fruits and vegetables. Around 1,500 POs account for 50% of this production.
In addition to direct aid and EU co-financing of rural development projects, EU fruit and vegetable growers have enjoyed exceptional support measures totalling €430 million since the imposition by Russia of an embargo on EU agri-food exports in August 2014 (see EUROPE 11577). The Commission also provides additional funding for POs of about €700 million every year.
In addition to this ongoing market aid, the new rules for the fruit and vegetable sector will bring an increase in the support available for market withdrawals, raising withdrawal prices from 30% to 40% of the average EU market price over the last five years for free distribution (so-called charity withdrawals) and from 20% to 30% for withdrawals destined for other purposes (such as compost, animal feed, distillation, etc.).
The new rules also seek to make POs more attractive to producers that are currently not members, by providing more clarity about which PO initiatives are eligible for EU funding support (for example, investment in technology or quality improvement) and setting a maximum percentage of produce that can be marketed outside the organisation at 25%.
Although PO members are encouraged to deliver their whole production to their organisation to market on their behalf, many also have a tradition of direct selling to consumers. One of the key proposals in the text is encouraging these kinds of short supply chains. The existing regulation sets only a minimum threshold and each member state sets its own maximum ceiling.
Lastly, the new rules will simplify and clarify the legislation on transnational POs and their associations. These organisations are a key element in the internationalisation of the sector, as they not only help to give farmers greater market access for their output but also ensure that value-added generated by higher exports is returned to farmers. To simplify and clarify the payments to transnational organisations, controls and payments are, for example, now linked to the territory where the action of the transnational organisation is implemented.
The Council and the European Parliament now have two months to vote on the delegated regulation which will then come into force. (Original version in French by Emmanuel Hagry)