Agrifood ProBrief

Tue 12 November 2024| View online

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Welcome to your daily Agrifood Pro Briefing. Today we bring you the latest on new disaster relief funds for farmers, what to expect from this week's Commissioner hearings and more.

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🟡Top Story

Council approves extra funding for disaster relief

Member states have backed the Commission's proposal to use unspent rural development funds for 2014-22 to compensate farmers and food SMEs for losses and damage caused by extreme weather events. The ball is now in the Parliament’s court, which should approve the text as it stands in plenary before final and formal adoption by the Council.


The Commission presented the proposal to the national delegations in the Special Committee on Agriculture (SCA) on 4 November, clarifying that it will cover not only weather phenomena such as floods and droughts, but also other types of natural disasters, such as animal diseases and plant pests. At the AGRIFISH Council on 21-22 October, the Slovak delegation presented a note warning that 11 EU countries "face an imminent risk of automatic decommitment" of rural development funds, as funds committed in 2021 must be spent by 31 December 2024.

🟡CAP & Agriculture

Commission proposes €50 million cut in support for promotion

At the Common Market Organisation Committee on 20 November the Commission will propose to member states a budget of €132 million for the promotion of agricultural products in 2025, €53.9 million less than in 2024. The reduction will affect communication campaigns involving several member states ('multi' programmes) and Commission initiatives such as visits to potentially interesting markets for EU agri-food companies. Support for single country projects ('simple' programmes) remains unchanged compared to 2024 (€92 million).


In the mid-term review of the 2021-27 budget, the EU cut agricultural funding by €440 million in 2025-27. As a result, the Commission proposed a €136 million reduction for 2025, the bulk of which (€84 million) was in support for promotion. In its 1st Amending Letter to next's year budget, the Commission updated its calculations and increased funding by €94 million compared to the original proposal, reducing the cut for promotion programmes.

🟡Hearings

There is still no verdict on Várhelyi  

Coordinators from the Parliament's ENVI and AGRI committees yesterday (11 November) again postponed a decision on whether to confirm Hungary's Olivér Várhelyi as the next commissioner for health and animal welfare. Discussions will resume on Wednesday afternoon (13 November), two MEPs present at the meeting confirmed to Euractiv.   


What about the answers? In his answers to MEPs' additional questions - submitted on Friday - he didn't make any significant announcements but promised "dialogues" and "discussions" with stakeholders. Várhelyi promised to modernise animal welfare standards and to follow up on the European Citizens' Initiative "End the Cage Age". However, he stressed that he would engage in discussions with stakeholders, including farmers.  


“My aim will be to make sure that these improvements do not disadvantage EU farmers,” he added. For food labelling, he vowed to work with “all stakeholders” to provide solutions to facilitate healthier food choices.   


Next steps. Parliament sources present at the meeting told Euractiv that groups are pushing to strip Várhelyi of some elements of his portfolio, but it is unlikely that animal welfare will be affected. "There is no willingness to move animal welfare to agri [Commissioner], that would create other problems (...) at the end of the day we prefer to have it under DG SANTE," a MEP present at the negotiations told Euractiv.


If there is no agreement on Wednesday, the next step would be to call a committee vote on Várhelyi's candidacy, which would only require a simple majority to either veto or confirm him. A "Venezuela majority" of the EPP and the far-right groups PfE, ECR and ESN could be enough to approve Várhelyi's post. The vote could take place on Wednesday evening or Thursday morning, according to parliamentary sources. 

Fitto and Ribera take their turn

Two political heavyweights, Italy's Raffaele Fitto (ECR) and Spain's Teresa Ribera (S&D), will take to the podium today to answer MEPs' questions. The agri-food bubble will be closely watched as Fitto, nominated by Ursula von der Leyen as executive vice-president for cohesion and reform, would also oversee agriculture if confirmed - a shift from the Commission's previous climate-focused approach to agriculture to a more economic and social one.


Meanwhile, Ribera, the would-be executive vice-president for competition and clean transition, if confirmed would have limited responsibilities for the agri-food sector, including state aid schemes for farmers and environment-related policies.  


Package deal for Fitto, Ribera and Várhelyi? The fate of Fitto and Ribera as commissioners could be discussed on Wednesday in a package deal that could also include Várhelyi and France's Stéphane Séjourné (Renew), who has been nominated for the position of executive vice-president in charge of industrial strategy.  


After the coordinators' meeting on Várhelyi's candidacy yesterday, Parliament sources close to the negotiations said that the confirmation of the four candidates could end up being negotiated at the same time as a wider package - as happened last week with Belgium's Hadja Lahbib and Sweden's Jessika Roswall.


Speaking to reporters, Iratxe Garcia, the leader of the socialist group, said Fitto, and Ribera should not be put at the same level. “The EPP deal was with pro-European forces, such as the socialists and liberals, and Ribera is a socialist,” she added.

🟡 Trade

Farmers call for coherent trade policy, slam EU-Mercosur

Yesterday (11 November), Copa and Cogeca presidents, Massimiliano Giansanti and Lennart Nilsson, together with more than 50 farmers’ organisations from all member states called for “a coherent trade policy that delivers for farmers and agri-cooperatives”. In two open letters, European farmers urge EU and national leaders to defend the food products targeted by China in retaliation to EU tariffs on Beijing's electric cars, and in the negotiation of the trade liberalisation agreement with Ukraine.


But their main concern is Mercosur. An agreement "without sufficient compulsory commitment from Mercosur countries on standards linked to animal welfare, the use of medicines in animal production, climate, chemical treatment, and other environmental standards may cause European farmers to take to the streets again," they warned. The agreement is "a threat to the competitiveness of our sector" and no financial compensation "would be enough," they added.


Farmers will take to the streets of Brussels tomorrow (13 November) to protest against the trade deal with Latin American countries. The demonstration is being organised by the Walloon farmers’ organisation FUGEA, joined by the French Confederation Paysanne and the European Coordination Via Campesina.

🟡Food & Drink

EU vanilla takes root between Rennes and The Hague

The first vanilla beans grown on the EU mainland soil have just been marketed in Brittany, in north-west France, after several years of experimentation. Production in Europe pales in comparison to theworld's vanilla powerhouse, Madagascar, but growers in France and the Netherlands are confident they can find a place in the market to take advantage of the booming demand for the spice.


Hugo reports on the fascinating challenges facing Europe's vanilla pioneers.

Olive oil market observatory kicks off

The European Olive Oil and Table Olive Market Observatory held its first meeting in Brussels on Monday (11 November). The observatory will serve as a platform “for discussion and cooperation among experts representing the entire supply chain, from producers to exporters,” said the Commission. “By gathering and assessing market data and statistics, the observatory will produce reports and provide market information accessible to all,” it added.


The launch of the Observatory comes at a time when EU olive production is recovering after two poor harvests, when the combination of high temperatures, drought, and rising energy costs pushed production down to 24% below the 5-year average in 2023/24, and prices up by more than 20%. The 2024/25 campaign looks promising, as Maria reported in September, and should bring relief to both producers and consumers.  

🟡 Fisheries

EU-Norway deal eases tension over fish quotas

The Commission and Norway have reached an agreement that will allow EU vessels to fish a quota of 9,217 tonnes of Svalbard cod in 2025. The quota had become an issue following the Brexit and the Norway's subsequent decision to set an EU quota for Svalbard cod below the Union's historic fishing rights. "We have managed to address some of the difficult issues in the area of fisheries - said

Commission Vice President Maroš Šefčovič - Challenges remain between the EU and Norway in the fisheries sector. They need to be addressed in this spirit, step by step.”


First EU-Albania fisheries restricted area: At the annual meeting of the General Fisheries Commission for the Mediterranean (GFCM), the EU and its neighbours agreed on the first Fishing Regulated Area between the EU and Albania, the European Commission said in a press release. The area will help to protect vulnerable marine ecosystems.

🟡 Names to watch

Henrik Samuelson has become the new president of FoodDrinkEurope for a two-year term. Prior to his appointment, he was vice president of customer brands at the Paulig Group, a Finnish food and drink company specialising in snacks, coffee and spices. Samuelson took over the presidency of FoodDrinkEurope from Marco Settembri, CEO of Nestlé in Europe until his retirement last month. 


Paula Pinho is poised to become the next chief spokesperson of the European Commission for the second mandate of Ursula von der Leyen, replacing Eric Mamer, she announced on X. Pinho is currently a director for just transition and consumers at DG ENER.

🟡The Capitals

The Hague – Greenpeace meets Dutch state in court over nitrogen policy 

Today (12 November), Greenpeace and the Dutch authorities will present their arguments in court in a case brought by the NGO over the management of nitrogen emissions. Earlier this year, an interim judge dismissed Greenpeace’s demands for urgent action to reduce nitrogen deposition in sensitive areas but acknowledged that existing policies were “seriously” inadequate in preventing environmental degradation. A livestream of the hearing will be available here.  


Helsinki – Water abundant Finland prepares for drought 

Finland has for the first time published national guidelines for drought management in the country, according to a press release from the Ministry of Agriculture published last Friday (8 November). 

Known “as one of the most water-abundant countries in the world”, the Scandinavian country has nevertheless experienced droughts that have had “considerable social consequences”, such as the one in 2018 that caused several hundred million euros worth of damage to the agricultural sector, the ministry warns. Concrete action will be taken to monitor and measure vulnerability and risks, and to implement emergency and coordination plans in the event of drought. 

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Today’s briefing was prepared by the Agrifood team; Angelo Di Mambro, Maria Simon Arboleas, Sofia Sanchez Manzanaro, and Hugo Struna. Share your feedback or information with us at digital@euractiv.com.

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