CAP post 2013: PROFEL input into the Public Consultation _29.06.2010

PROFEL is the European Association of fruit and vegetable processing industries (canned vegetables, frozen vegetables, dehydrated vegetables, jams and preserves, canned fruit and compotes), representing over 500 companies in 15 EU countries.

As primary and secondary processors of predominantly EU-sourced raw materials the future of the industry is closely linked to the future of EU Agriculture.

1.Why do we need a Common Agricultural Policy?

Fair Competition
A Common Agriculture Policy is needed to ensure a level playing field and fair competition between farmers and processing industries in all Member States. Since 2003, Members States have been given the freedom to choose how to implement the CAP reform, the Fruit and vegetable CMO reform and finally the Health Check. This has resulted in a great diversity of situations for farmers in distinct Member States. In short, as a result of the different implementations we do not have a common policy for fruit and vegetables at the moment:

• Since the reform of the fruit and vegetable CMO, vegetable hectares are eligible for direct payments in some countries and not in others. The level of hectare payment can vary a lot from one Member State to another. This situation creates competitive distortion between farmers and industries.
• Orchards of peaches and pears going to the industry receive a transitional hectare payment in some Member States and not in others following the CMO reform. There is a competitive distortion between Member States during the transitional period: those who have already fully decoupled see their peaches and pear processing industry disappear while countries with a transitional coupled aid benefit from a “suspension of sentence”. For these crops, the situation should be harmonised between Member States after 2013, but will growers and processors still be there?

2.    What do citizens expect from agriculture?


3.    Why reform the current CAP?

Secure raw material supply
A competitive processing industry needs access to high quality, sustainable raw material. Only a reformed CAP can address the challenges of Europe’s future food policy, and secure employment not only in agriculture but the many sectors linked to it.
The future of fruit for industry is particularly at threat, and the CAP reform must address the security of raw material for industry if the fruit canning sector and the 30,000 jobs linked to it are to survive.

Prepare European fruit and vegetable production for growth
Based on the Food and Agriculture Organisation’s prediction of the global food needs increasing by 50% by 2030. Europe’s focus should not be restricted to simply maintaining its agricultural infrastructure and its current ability to produce food. It should also develop its potential to increase production and to become a global food supplier.

Create a level playing field
Reform is needed to rectify the present discrepancies between Member States for one and the same crop, and to reduce inequalities between farmers who receive payment on historical basis.  


4.  What tools do we need for tomorrow’s CAP?

Common Market Organisation/Producer Organisations
Fruit and vegetable processors add high value to top-quality agricultural raw material, and provide direct and indirect jobs to rural communities. The sector depends on sufficient local supply of raw material at reasonable prices. Competitive Producer Organisations with ambitious operational programmes who modernise, invest into new technologies and into sustainable farming provide continuity of high quality local raw material for industry. At the same time, any measures aimed at strengthening producer organisations should not lead to distortions of competition between auto-processing Producer Organisations and private processing companies. Maintaining a level playing field for all operators is crucial in the single market.

Single Farm Payments
SFP needs to be kept as an income support for farmers in order to assure enough farmland for food production. However, it must be reformed in a way that there is no discrimination between a) different crops as we see at present (i.e. between cereals and vegetables), and b) between different Member States for the same crops.

Options to co-finance SFP must not lead to a re-nationalisation of the agricultural policy.  

Specific support for orchards
While the intention to encourage farmers to react to what the market requires is good, it does not work for all crops. Fruit are permanent crops, and the growers thus cannot respond to the market signals as requested.
The loss of coupled aid and export refunds over recent years and the fierce pressure of 3rd country competition have largely led to a deterioration of the fruit canning sector. Raw material price demands cannot be met, so that growing fruit for industry may in the future no longer be viable for the farmer.
If EU industry is to survive, growing fruit for industry needs to remain profitable for the farmers, and for this specific support is required.  

Promotion Policy
The EU promotion policy needs to continue to play an important role in promoting high quality EU agri-food products – both in 3rd countries and inside the EU. However, as such an important tool it needs to be reviewed and financially reinforced.  Especially for fruit & vegetables, incentives to stimulate consumption must see more initiatives on the internal market.
At a time that scientist and public authorities are unanimously calling to increase fruit and vegetable consumption as part to improving diets and to installing healthy eating patterns in order to reduce health care costs in the long run, agricultural politics must not only assure stable production of fruit & vegetables – both for the fresh market and the processing sector - but also install high-impact promotional measures.