Transcript Title of presentation Second line presentation title

Agricultural situation
in the European Union
Shelby Matthews, Chief Policy Advisor
Who are Copa and Cogeca?
Copa – represents EU farmers
Cogeca – EU agri-cooperatives
77 member organisations
from 27 countries in the European Union
Over 13 million farmers in the EU
Recent changes to EU agricultural
policy:
 most market management measures
abolished, export refunds minimal
 90% of support no longer linked to
production (decoupled)
 offer in Doha to reduce agricultural
tariffs by average 60%
EU export refunds
12
billion €
8
4
0
1980 EU-9
1985 EU-10
1990 EU-12
Source: EAGF financial reports
1995 EU-15
2000
2005 EU-25 2010 EU-27
Recent reforms of the EU agricultural
policy:
Reinforcement of costly standards all farmers
must meet:
 on food safety & traceability
 on environmental protection (soil, water, pesticides,
biodiversity…)
 on animal welfare
What are the risks & challenges
 2009 a year of market crisis
 meeting new environmental and animal welfare standards
- increasing costs for EU farmers
 concentration in food chain - squeezing farmers
 farmers’ incomes are deteriorating
 market volatility on the increase
 Doha will lead to huge losses to farmers, especially
livestock, + Mercosur trade negotiations restarted
 climate change – especially water constraints
Milk Prices Evolution (up to February 2010)
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LTO Average Milk Prices * (standardized 4.2% fat)
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LTO Weighted Average Milk Price * (standardized 4.2% fat)
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Weighted EU Average (real fat content)
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LTO : Land- en Tuinbouworganisatie Nederland (http://www.milkprices.nl/)
* LTO prices for main dairies in : BE, DE, DK, FI, FR, GB, IE and NL
EUR/100 kg
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Farmers’ incomes declining
In 2008 farmers’ income only 50% of average
earnings in total economy – less in 2009
The long term development of farm income
index 2000 = 100
120
110
100
90
2000
2001
2002
2003
2004
2005
2006
Sector income/full-time labour unit, EU-25
Source: EAA, real terms
2007
2008
2009
Weak position of farmers in food chain
Value-added growth since 1995
1.9%
-1.5%
Agriculture
Food
industry
Agriculture’s
share of the
value added in
the food chain
1995: 31%
Now: 21%
The future?
 concentration & intensification of
production because of low prices/high
costs & volatility?
 future of family farms at risk
 land abandonment in many rural areas?
Measures needed
 markets - a better & more stable functioning
 food chain - reinforcement of farmers’ position
 climate change - help farmers to adapt to
climate change -especially water constraints
(flooding, drought)
 more research & innovation – transfer to
farm level – training, advisory
Reinforcement of farmers’ position in
the food chain
 reinforce producer groups/cooperatives
 codes of conduct in food chain
 increase market transparency, particularly
on margins/price transmission
 EU ombudsman to arbitrate on food chain
disputes
Food security
Concerned Doha will lead to concentration of world
production in few most competitive regions
Negative impact on reducing hunger, food security,
rural communities…
Copa-Cogeca joining together with other farm
organisations throughout the world calling for:
More coherence between WTO, FAO &
other global objectives
THANK YOU