Agrifood ProBrief

Fri 15 November 2024| View online

Estimated reading time: 4-5 minutes

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Welcome to your daily Agrifood Pro Briefing. In this edition, we unpack yesterday's chaotic vote to the delay of the EU's anti-deforestation rules, the draft conclusions of the high level group on wine and the latest data on the agri-food sector.

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🟡Top story

Brawl over deforestation: EUDR vote amid parliamentary chaos

In a nail-biting vote in Brussels yesterday, the European Parliament agreed to extend the transitional period before the EU’s anti-deforestation regulation (EUDR) comes into force by one year - but it also backed further changes to the text. The most significant of these was the creation of a "no risk" category to exempt certain countries from most of the requirements.


In this article, Maria and Sofia unpack the details of the changes, the dispute over the revote, the possible next steps and the reactions from some of the EU's trading partners. 


Legislation in limbo. The Parliament and Council will now enter into trilogue talks and negotiate the proposed changes. However, they only have a month to do so before the rules come into force on 30 December, and the Council had previously asked MEPs not to adopt any new changes to the rules to ensure speedy negotiations and predictability. EU ambassadors will discuss the changes on 20 November, the Hungarian presidency said. 


Socialist MEP Bernd Lange did not mince his words on social media: "Extremely worrying because it puts the whole legislation in limbo. No one knows now how this will end". 


"Why does the EPP hate our nature and love clear-cut forests so much?" said Green MEP Thomas Waitz, calling the new "no risk" category "nonsense". 


In contrast, EPP member Herbert Dorfmann boasted of having secured an exemption from the rules for his home region in Italy. "Since South Tyrol and Trentino meet these requirements, the two provinces can be included in this new category," he added. “In this way, the constraints of the regulation will not apply to our territory".


NGOs sound the alarm. Environmental NGO Earthsight accused the EPP’s German and Austrian delegations of pushing for the amendments, which it said would benefit some of their major political donors. According to the organisation, the “no risk” category creates a loophole that opens the door to the “laundering” of goods. Similarly, Greenpeace warned that subjecting only 0.1% of companies importing “no risk” commodities to controls would allow deforestation trade to fly “under the radar”.

Behind the scenes. As Sofia reported ahead of the vote, the EPP withdrew other amendments it had tabled following concerns from some national delegations and discussions with Renew on Wednesday. The dropped proposals sought a two-year extension instead of one and an exemption for traders, changes seen as red lines by the liberals. In return for the withdrawal, Renew asked its members not to vote against the final text but to abstain.  

🟡 CAP & Agriculture

Stakeholders group to recommend push for low-alcohol wines

The High Level Group (HLG) on Wine could propose vine grubbing-up schemes, the use of a fungicide in organic viticulture and a push for low-alcohol wines for both market and health reasons, according to a draft of its policy recommendations seen by Euractiv. Check out Angelo’s story here.


Stakeholders, the Commission and member states will start discussing the draft today (15 November), with the aim of adopting a final version of the document on 16 December. The high-level group met for the first time on 11 September. The day before, Hugo set out the reasons why the sector is in deep crisis. 


Tackling oversupply: The HLG recommends tackling oversupply through national permanent grubbing-up schemes financed by state aid. This measure should be coordinated with the management of planting rights, with greater flexibility for Member States to implement the EU vineyard area limitation system. 


Improve resilience: Wine-producing regions should present a climate change adaptation plan outlining all relevant measures to support the sector in this task. The Platform also proposes that the Expert Group on Organic Production reconsiders its negative opinion on the use of the fungicide potassium phosphonate in organic viticulture as an alternative to copper, which is subject to restrictions from 2019. 


Market trends: The Group calls for EU technical rules, such as those on oenological practices, to be updated to facilitate the marketing and promotion of low-alcohol wines, "fully and partially de-alcoholised", to meet new consumer demand and for health reasons. On the other hand, the document reaffirms the "special status" of wine compared to other alcoholic beverages, given its "huge importance for the wealth of rural areas". 


Angelo gives more insight into the document and the latest data from the 2024 harvest in this article.

MEPs fast-track rural funds to help farmers hit by disasters

MEPs yesterday agreed by a show of hands to fast-track legislation allowing member states to use unspent rural development funds for 2014-22 to partially compensate farmers hit by natural disasters. The vote to approve the Commission's legislative proposal without amendments, as already done by the Council, is scheduled for the next plenary session (Strasbourg, 25-28 November). 


Angelo anticipated the details of the proposal.  

🟡 Crops & Livestock

Value of EU agricultural output down in 2023, says Eurostat

In 2023, the value of the EU's agricultural production and services fell for the first time in more than 10 years, Eurostat data show. It stood at €537.1 billion at basic prices, 1.5% lower than the peak reached in 2022 (€545.4 billion). This "slight decrease [...] ended the upward trend that had started in 2010", the EU statistics office said in a statement. According to Eurostat, the decline was affected by a fall in production volume (-2.3%), which was not sufficiently offset by an increase in the nominal price of agricultural goods and services (+0.8%). 

European tractor market stalled

Tractor sales are declining in Europe, according to a market report by French agricultural machinery manufacturer Axema. In the French market, Europe's largest, they will fall by 12% between 2023 and 2024. 


In Germany, Axema is expecting "a drop of 15 to 20%, and in Italy between 5 and 10%," the company’s economic director David Targy told Euractiv. These countries share most of the EU market with France. This market split is linked to poor cereal and grape harvests in 2024, according to Axema, but it is also the result of a booming 2023, with major investments.  

🟡The Capitals

Warsaw – Agriculture ministry has reservations about the EU-Mercosur trade deal

The EU-Mercosur agreement "in its current form" poses a risk to Polish agricultural products, especially in the poultry meat sector, the Polish Ministry of Agriculture said in a statement. For this reason, the ministry has "serious reservations" about the agreement and want to discuss them within the government. Yesterday, France said that Belgium, the Netherlands, Cyprus and Greece had also expressed concerns. Meanwhile, in Germany, the ranks of those urging the Commission to 'split' the deal in order to circumvent French opposition are growing. 


Jonathan and Theo bring you the latest on the most controversial trade deal of the last quarter century. 


Tallinn - Estonia increases its herring quota  

Estonia's Minister of Regional Affairs and Agriculture, Piret Hartman, has announced in a press release that he wants to "redistribute or increase" Estonia's fishing quotas - in particular herring - this year, by amending the national regulation on fishing rights. This is allowed under the Common Fisheries Policy (CFP) if the previous year's quotas have not been fully utilised. "This means an extension of the fishing season, which increases both the income of the fishing industry and the availability of fresh fish on the market", the ministry said. 

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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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