The European Parliament Inter-group for fruit and vegetables has announced plans to reform the sector’s Common Market Organisation (CMO).
Speaking at the group’s meeting in Strasbourg on October 25, Mariann Fischer Boel, responsible for Agriculture and rural development at the European Commission, said the reform, to be rolled out by 2008, will complete work initiated by CAP reform in 2003/04.
She said parts of the sector’s CMO are no longer compatible with the reformed CAP, highlighting the processing sector in particular.
The proposed reform is based on five objectives: to improve the competitiveness and market orientation of European fruit and vegetables; to reduce fluctuations in fruit and vegetable producers’ income resulting from crises; to increase consumption of fruit and vegetables in Europe; to continue the efforts made by the sector to maintain and protect the environment; and to simplify, and where possible, reduce the administrative burden for all concerned.
Fischer Boel said the problems affecting the fruit and vegetable industry differed from other agricultural sectors but she questioned whether it is similar enough to be included in the Single Payment Scheme.
She listed high levels of concentration among retailers and discount chains that has enabled them to assume a leading role in the determination of market prices, as a serious pressure on the sector.
Increasing competitive pressure from third country imports is also having an adverse impact.
“We have important offensive interest to pursue in many of the emerging third country markets. But often our exports are hampered by sanitary and phytosanitary barriers,” said Fischer Boel.
“We should not accept unfair competition from third countries. But on the other hand trade protection should not be considered as an excuse to postpone for tomorrow, what needs to be done today.”
Tackling producer fragmentation is another key element of the reform, said Fischer Boel.
“We have existing support schemes that provide financial support for the operational programmes of fruit and vegetable growers who market their products via producer organisations. In spite of these schemes the number of producers that market their products through these groups remains disappointing. But rather than giving up this approach - I want to reinforce it,” she claimed.
The initial activities for reform are already underway and the group is finalising a comprehensive impact assessment, which will accompany the legislative proposal.
This follows a two month-long public consultation on the sector’s reform started in May.
“130 contributions namely from Member States, stakeholders, NGOs and industries have been carefully examined by my services before drafting the legislative proposals and the impact assessment report,” said Fischer Boel.
She added that the group hopes to complete the CMO reform for bananas by the end of the year.
No comments yet