Fruits

1
Fruits Vegetables Common Market Organizations
reformEESC (24.5.2006)
2
Outline

• The current F V CMO
• - Fresh products
• - Processed products
• The reform process
• Aims of the reform

3
The current F V CMO.Fresh Products (reform
1996)

• Producers Organizations (PO) role is totally
  modified. They are set up in order to improve
  market orientation, quality of the products and
  environmental management
• Introduction of co-financing
• ? 50 POs
• ? 50 EU
• Restricted volumes eligible for withdrawals

4
Budget evolution since 1996
5
Budget expenditure 2005 (M)
Total 634,4 million
6

• Main features in F and V market

7

• Concentration of the retailers

• Concentration of the retail sector is increasing.
• Large retail chains account for 70-90 of all
  food retail in France, Germany, the Netherlands,
  the UK and Nordic countries.
• Discounters strengthen their position (Germany
  51).
• Large retail chains increase their market share
  in new MS. Strong development of discount chains.

8
2. Insufficient grouping of the supply. Ratio
of POs on the Total Production in 2000- 2004
9
unbalanced geographical coverage.( of
production marketed by POs)
10
and

• Increased EU production for some products, or
• Increased imports for others or
• Increase of both EU production and imports
• Stagnation and even decreasing consumption

11
Processed products How the system works

• 1est Cluster tomatoes, citrus fruits, peaches
  and pears
• 2º Cluster Dried figs and plums
• 3er Cluster Dried grapes

12
1º Tomatoes, citrus, peaches and pears

• EU aid expressed in /t of raw material
  delivered for processing
• EU/MS thresholds fixed by the Council
• Signature of Contracts between POs Processors
• Deliveries
• Aid request
• Payment of aid to POs ? POs pay to Producers

13
2º Dried figs and plums

• Aid per Tonne 258,57
• Minimal Price 878,86 /t
• Fixation of Minimum Price to be paid to
  producers.
• Fixation of Aid
• MAXIMUM AMOUNT Min price Price 3rd countries
• Price in 3rd countries calculated on the basis
  of EU import price.

14
3º Dried grapes

• Aid per Hectare (2.603 ) conditional to a
  minimum yield
• Minimum Yield sultanas 3 t/Ha
• The maximum guaranteed Community area 53.178
  hectares
• Fixation of Aid AMOUNT based on
• evolution of areas
• Price in 3rd countries calculated on the basis
  of EU import price

15
Processed Tomatoes main MS ? IT, EL, ES PT
TOMATOES 2004-2005
UE 11,4 million T (65)
PL 117 787 T (50)
FR 215 667 T (25)
SK,HUMT 163 821 T (50)
ES 2 310 842 T (50)
PT 1 011 330 T (84)
IT 6 363 659 T (90)
EL 1 187 609 T (55)
16
Processed Citrus Fruits
CITRUS 2004-2005
UE 2,4 million T (23)
ES 877 987 T (15)
IT 1 268 912 T (40)
PT 23 244 T (7)
EL 257 450 T (26)
17
PEACHES NECTARINES processed raw material
PEACHES NECTARINES 2004-2005
UE 404.879 T (11)
FR 6.039 T (1,5)
ES 112.678 T (10)
IT 21.779 T (1,5)
EL 264.384 T (44)
18
Dried plums processed raw material (in tons)
Plums 2004-2005
UE 47.143 T
FR 45.602 T
ES 329 T
IT 1.212 T
19
DRIED FIGS processed raw material
DRIED FIGS 2004-2005
UE 11.913 T
ES 6.945 T
PT 21 T
EL 4.947 T
20
DRIED GRAPES processed raw material
DRIED GRAPES 2004-2005
UE 74.255 T
ES 925 T
CY n.a.
PT 17 T
EL 73.314 T
21
Budget evolution since 2000
22
Budget expenditure 2005 (M)
Total 848.9 million
23
Processed products Common features

• Aid in Amber Box
• Complex regulation
• Not enough market oriented

24
The F and V CMO reform

• Starting point
• Commission Comunication (August 2004)
• The Dutch Presidency Conclusions (Nov. 04)
• The own-initiative EP opinion (May 05)
• Institutions, MS and sectors opinions

25
The Dutch Presidency Conclusions

• Processed products and citrus.
• It is recognized that the current regime plays
  an important role in employment in rural areas
  and in restructuring the sector and in
  maintaining a market balance. Taking this into
  account, the Commission should carry out the
  appropriate impact analysis on all aspects of
  this question concerning a possible shift from
  the current regimes to an approach based on
  objectives and instruments already used in the
  2003 CAP reform.

26
Evaluations
27
Impact Assessment Group

• Setting up in September
• Hearing (15 March 2006)
• Advisory Committee (18 May 2006)
• Consultation document

28
Aims of the reform (I)

• contribute to a better distribution of the value
  along the chain
• strengthen the coherence between the structural
  measures in the CMO and those in the rural
  development policy
• bring the CMO's instruments closer to the
  reformed CAP's approach
• help the horticultural sector overcome short-term
  crises
• encourage better nutrition for better health
  among Europeans, by advocating the consumption of
  fruit and vegetables

29
Aims of the reform (II)

• increase the coherence between the environmental
  approaches of the CMO, the reformed CAP and its
  second pillar
• target the CMO's environmental approach on the
  main problems posed by the production and
  marketing of fruit and vegetables
• simplify marketing standards and direct them
  towards the promotion of quality and sustainable
  development
• Promote the monitoring of relations and
  cooperation within the value chain.

30
Scheduled calendar

• November-2006 Council proposal
• First semester 2007 discussions PE-Council.
• Second semester 2007 Commission Regulations
  approval
• 2008 Entry into force of the new CMO