20 July 2011

At a major press conference today, Copa-Cogeca Presidents Mr Sonnleitner and Mr Bruni highlighted the nutritious benefits of EU fruit and vegetables and called for further measures to be urgently introduced that would support EU fruit and vegetable producers and cooperatives hit by the e.coli crisis.

The Conference was followed by a reception with high quality fruit and vegetables, juices and smoothies. Speaking at the event, Copa President Gerd Sonnleitner emphasised the need for promotional action to be introduced immediately in the sector, to help it recover, in the height of the season.

Cogeca President Paolo Bruni said “EU producers and agri-cooperatives have suffered enormous losses as a result of the e.coli crisis. Losses reached 400 million euros per week at the peak of it.

In view of this, Copa-Cogeca has sent a letter to the EU Council Presidency calling for producers to be 100% compensated for their losses. I also met with the Council Presidency this morning to highlight our demands”.

Mr Bruni continued “The Commissions proposed rescue package of 210 million euros is a good start, but it will not be nearly enough to compensate producers for their huge losses. In particular, structural difficulties experienced in the marketing of peaches and nectarines have been aggravated due to the glut of produce on the fruit market (peaches, nectarines and melons).

“We therefore call on EU Farm Ministers to introduce a second package of measures for producers, together with an additional budget to finance these, for an extended period until 31^st July. We want the number of products covered by the aid to be enlarged.

“All fruit and vegetables for which there is proof that the drop in prices is due to the E. coli crisis must be eligible for aid. An additional payment of €30 per 100kg must be added to the maximum amounts of EU support provided for peaches and nectarines which have been withdrawn from the market.

“A system, which applies retroactively to the period 26th May to 18th June, must be created to compensate producers for the difference between the maximum amounts of the EU contribution and the sales prices of the products affected by the crisis.”

Fruit and Veg needs a promotion campaign

Chair of Copa-Cogecas’ Fruit and Vegetable Working Party Mr VanEs said “A promotion campaign for fruit and vegetables must be rapidly put in place not only in the EU but also in non-EU countries. This campaign should be 100% financed by the EU through a separate specific budget. On the top of e.coli crisis, which hit producers at the worst possible time, consumption for fruit and vegetables is in general stagnating.

“Yet fruit and vegetables are vital for consumer health, with the WHO recommending that consumers eat 400 grammes of fruit and vegetables/day or five portions per day – about a third of your daily food consumption. Promotional action in this sector is therefore crucial. Copa-Cogeca is nevertheless happy that the EU has increased the indicative budget for fruit and vegetables promotion from 10 to 15 millions € /year in the next 3 years”.

Impact of EU drought on the livestock sector

Mr Sonnleitner went on to present Copa-Cogeca views on the impact of drought on the EU livestock sector. The move came on the same day as these issues were debated at EU Farm Ministers meeting.

He stressed “Besides the different structural problems faced by beefmeat producers, there is a need to address the low availability of fodder in countries affected by drought (around 30-50% drop in fodder in France, Belgium, partly Germany and United Kingdom).

“In France, for example, there is estimated to be a 15.8 million tonnes loss in fodder and in order to replace this quantity, producers will have to buy straw and cereals and soya costing an estimated 2.2 billion euros (15.8 x 140 euro/tonne) If the situation continues, the impact on the market will be most likely seen in autumn as a result of the early slaughtering of animals as producers will no longer be able to feed their animals.

"I have therefore urged the Polish Presidency to consider introducing a point on beefmeat market monitoring on the September/October Farm Council’s agenda. The possibility to activate private storage and export refunds would have to be considered.”

He continued “Moreover, beefmeat producers continue to have the lowest income of all agricultural sectors. EU farmers and their cooperatives consequently insist on the need for some immediate measures, without waiting for the revision of the CAP in order to secure the European beefmeat production base.

“These include: maintaining a coherent trade policy vis-avis the CAP; setting-up of an observatory of prices and margins which should come with a study on the evolution of prices and margins along the food chain; close monitoring of the EU beefmeat market following the abolition of milk quotas; a better organization of the sector (by allowing producer organizations to negotiate contract terms).

“As regards the CAP post 2013, there is a need to maintain coupled support (the suckler cow premium, and the possibilities within article 68) as well as Less Favoured Area payments. In addition, the situation of the “fatteners” production systems should be taken into account within the discussions on the CAP post 2013 in order to preserve the future of the “breeders” production systems.”