The ECA has found that despite receiving €1.06bn in EU support in 2023, producer organisations continue to lose market share and farmer membership
A new report from the European Court of Auditors (ECA) has found that while EU funding is helping fruit and vegetable producer organisations to become more competitive, they are still losing ground.
The report, titled ’Producer organisations in the fruit and vegetables sector – Fertile ground for competitiveness if carefully tended’, said that uneven national support, complex EU rules, and the European Commission’s lack of response to the challenges the sector faces are holding back their development.
It pointed out that fruit and vegetable producers are having to deal with growing economic and environmental pressure, from rising costs to changing market demand.
While producer organisations are meant to help them to respond collectively, they have been losing market share, it said.
Meanwhile, the number of member farmers fell by 39 per cent between 2012 and 2023.
“If producer organisations are to help farmers to stand up to large buyers and provide consumers with a wide variety of European fruit and vegetables, the rules must be simpler, national support more consistent, and membership more attractive”, said Keit Pentus-Rosimannus, the ECA Member in charge of the audit.
Producer organisations that bring together fruit and vegetable growers received €1.06bn in EU support in 2023, the report outlined.
They used this funding to modernise equipment, automate production, save energy and water, obtain quality certificates, improve packaging and logistics, and develop quality labels recognised by consumers.
As the funds are linked to marketed production value, this also encourages organisations to increase turnover and plan production according to market demand.
However, despite the EU support, producer organisations remain in a weak position compared to large retailers, ECA confirmed.
”Larger producer organisations can offer bigger volumes and a wider range of products, which helps them to negotiate better,” it said.
”However, in most member states, producer organisations are not large or well-known enough to bargain from a strong position.
”Belgium and the Netherlands are the only countries where such organisations are economically significant,” the ECA continued.
The auditors also found further major differences between EU countries.
Some have no recognised producer organisations at all, the ECA commented, while in the rest, the share of production marketed through them ranges from 0.8 per cent in Slovenia to 86 per cent in Denmark.
Historical and cultural factors explain part of this variation, the organisation said, but national choices also play a role,
”Some authorities actively advise organisations, and allow a broad range of funded actions,” the ECA stated. ”Others apply stricter eligibility rules or provide less support.
”This creates an uneven playing field within the single market. It can also deter farmers from joining producer organisations or submitting operational programmes to obtain EU funding.
”The auditors found that although the Commission has identified some of these challenges, it has not done enough to address them, or to help member states to compare and align implementation,” the ECA added.
