EU agriculture ministers will meet in Luxembourg on Monday 9 October for an Agriculture Council at which they will take stock of the market situation and discuss the impact of the United Nations sustainable development goals on the common agricultural policy (CAP). Also on the agenda will be the free-trade negotiations with Mercosur and the Fipronil-contaminated eggs affair.
The European Commission will brief ministers, as it now does regularly, on the market situation which it considers to be generally good. Problems remain, however, in the pig meat sector (as a result of African swine fever and the fall in exports to China) and the cereals sector (poor weather conditions). In its short-term agricultural outlook report, DG Agriculture says that cereal prices, which are very low, are unlikely to rise, given the plentiful global supply. Rapidly rising pig meat production, combined with the slow-down in exports, could lead to a fall in prices, the report also states. Although the situation in the sugar sector is positive, the Commission says it will keep a very close eye on how it develops to prevent any disruption linked to the ending of quotas (see EUROPE 11874). The increase in global sugar production in 2017-2018 could put additional pressure on already low world prices and prices in the EU will be more exposed to world price volatility. Some member states are concerned that public stocks of skimmed milk powder could have an effect on prices. The Commission, however, provides reassurance: the strong demand for cheese, butter, cream and powders is supporting milk prices.
In the context of this discussion, France, concerned regarding the beef sector, will, in the “Other business” section, raise the issue of the free-trade negotiations being conducted by the Commission with Mercosur. Austria, Hungary, Ireland, Luxembourg, Poland, Romania, Slovenia and Slovakia will support France. In their revised market access offer, Commission negotiators have added 70,000 tonnes of beef as import tariff quotas in the list of sensitive products.
CAP 2020. Ministers will also discuss the effect on the CAP of implementation of the United Nations 2030 agenda for sustainable development. Two questions will be put to ministers. To what extent do current policy instruments contribute to achievement of the agriculture-related sustainable development goals? In what areas could there be more efficient cooperation?
A joint declaration on the CAP after 2020 will be presented by the countries of the Visegrad group (Czech Republic, Hungary, Poland and Slovakia) plus Lithuania, Latvia, Bulgaria, Croatia and Romania. These countries want to highlight that differences in direct area payments remain between member states and they call for the process of full convergence to be completed.
Austria will share the outcome of an international conference on the future of mountain agriculture in the Alps which it organised on 13-14 September and which discussed the issue of the CAP after 2020.
Fipronil and Spanish olives. The Commission will brief ministers on the outcome of the high-level meeting on 26 September which was devoted to the Fipronil-tainted eggs affair. A plan to draw the lessons from this scandal was launched at that meeting (see EUROPE 11870).
Also as an “Other business” point, Germany, France and the Netherlands will highlight the need to ensure balanced financing for the EU of the minor uses coordinating facility for plant-health products for the coming years.
Spain will highlight the threats of anti-dumping measures against its exports of black olives to the American market (see EUROPE 11836).
Lastly, Malta will present the conclusions of the Conference of Directors of EU Paying Agencies and the informal meeting of Directors for Rural Development held in the first half of the year under its presidency.